Research On Influence Of Pro-poor Expenditure On National Happiness Perspective

It is generally believed that the pro-poor expenditure,which is largely made up of the education expenditure, medical expenses and social security expenditure, can significantly improve the national happiness, and there is a close relationship between the education expenditure, medical expenses and social security expenditure with the national happiness. Considering the optimal pro-poor expenditure proportion will further reveal the logic and mechanism between the pro-poor expenditure with the national happiness, to provide meaningful reference for policy makers. Because under the budget constraint, pro-poor expenditure too much, will misappropriated other spending s, resulting in coordination and the low efficiency of fiscal expenditure structure,and thus reduce national happiness level.But most of the existing literature is proved that the pro-poor expenditure or an item of pro-poor expenditure has a positive or negative influence on national happiness,Few scholars from the perspective of the best proportion of lean type study the relationship between the pro-poor expenditure and national happiness. This article will focus on the pro-poor expenditure impacting effect on the national happiness, and find the optimal proportion of fiscal expenditure, to promote national happiness to the earth.In this paper, on the basis of previous research in pro-poor expenditure and national happiness, firstly we analyzed the theoretical mechanism that pro-poor expenditure impacts on the national happiness, and then analyzed the prsent situation of pro-poor expenditure and the national happiness. Then according to the theory of "Armey curve", this paper constructs the empirical equation between pro-poor expenditure and national happiness, to examine the existence of the optimal size of the pro-poor expenditure. The results shows that:the relationship between pro-poor expenditure and national happiness is not simply linear but Inverted U-shape,and the nationa happiness is the highest when pro-poor expenditure accout for 36.9% of the fiscal expenditure.secondly,through the analysis of classified sample, the Inverted U-shape still existed but the inflection point in the lower happiness region is at the back of the higher happiness region, which idicates that the lower happiness region need more pro-poor expenditure. Thirdly,through the analysis of pro-poor expenditure,it is found that education expenditure?public health expenditure significantly enhance national happiness and the public health expenditure enhance happiness in the lower happiness region further than the higher happiness region.In the last,the paper proposed some recommendations.