Research On The Effect Of Government Education Expenditure On Residents' Consumption

After the reform and opening up, China's education career with the overall growth of the national economy, but also to achieve a leap forward development, has made many remarkable achievements?China has always attached great importance to the development of education, the development of education can not be separated from the financial support, education expenditure is an important part of financial expenditure?Fiscal expenditure on education to the education industry's overall development to economic base and resource guarantee, how to increase the financial input, rational allocation of education funds to invest, raise education funds use efficiency, is the focus of our current financial education efforts?For a long time, effect of government expenditure on consumption has been regarded as research focus in the academic circles, which the impact of government expenditure on education on consumption also in the near future gradually along with the social importance of education by the attention from all walks of life?Based on the above background, firstly, the status of government education expenditure and consumption of resident of comprehensive statistical analysis and from the microscopic point of view, using theory of consumer behavior analysis of the impact of government expenditure on education of residents consumption structure; and from a macro perspective, the use of IS-LM model theory, explore government education expenditure impact on household consumption expenditure, multi-faceted explore the impact of government expenditure on education to the resident consumption, finally by constructing panel econometric model and combined with the 1998-2013, China 31 provincial panel data of empirical test?Theoretical analysis shows that in reality, most of the time the economic situation are not in the more extreme the Cairns area and classical regional, more is in the middle region, according to the present situation of our country, it can be concluded that the economy is closer to the classical middle region. Therefore, government fiscal education expenditure increase of residents consumption crowding out effect. The empirical results show that:during the whole sample period, that is, during the period of 1998-2013, there is a significant crowding out effect on the consumption expenditure of Chinese government. The research results show that there is significant difference in the effect of government education expenditure on the consumption of residents in different time periods. The government education expenditure in 1998-2005 have no significant effect on consumer spending, government expenditure on education in 1%years 2006-2013 level significantly instead of consumer spending, the crowding out effect on consumption. Regional research results show that the major reason for the difference between regions also affect consumer spending. The eastern region, the impact of government expenditure on education on consumer spending was not significant, and central and western regions of the government expenditure on education can significantly out of consumer spending, and west of the extrusion effect is greater than the central region. Other control variables have difference in different regression model and the research sample?On the basis of theoretical analysis and empirical test of the proposed to accelerate the economic development, improve the residents' income, optimize the structure of fiscal expenditure, increase government spending on education investment and improve the system of government expenditure on education, narrowing the gap between regional education spending etc. relevant policy suggestions in order to promote consumer spending in an all-round way, the expansion of domestic demand, promote the sustainable and fast development of China economy.