A Research On The Impact Of The Government Livelihood Expenditure On Crime Rate

Crime rate is affected by many factors, such as income inequality, unemployment, education, economic development and so on, among which livelihood expenditure is worth studying. Increased spending on people's livelihood wil l increase people's income level and improve the opportunity cost of individual decision-makers involved in a crime, which a corresponding reduction in the optimal allocation of individual decision makers in the illegal activity time. Through analyzing China fiscal spending and crime, we found that Chinese people's livelihood expenditure is increasing, but still below the world average and crime rate is also growing in overall. Based on this, we believe that rising crime rates have negative impact on the livelihood of the expenditure. After applying the model of legitimate income-crime income, we found education spending, health care spending, social welfare spending are important factors that influence crime rates. At the same time, we use the 1998-2012 year in mainland China 29 provincial panel data, building the people's livelihood fiscal expenditure panel data econometric model affect the crime rate. The results showed the livelihood of the expenditure have a significant negative correlation between the crime rate. The impact of social welfare is the most obvious, and the impact of education spending and health care spending is gradually increased. At the same time, the conclusion also shows that the local government's public security expenditure does not play the desired deterrent role in reducing the rising criminal rate. Fatherly, the advice is that Chinese government must adjust public expenditure structure, increase fiscal spending on people's livelihood and transform criminal control strategy from the simple maintenance of stability towards focusing on people's livelihood in order to control the escalating crimi nal rate.