The Research Of Influence Mechanism And Effects Of The New Rural Co-operative Medical System On Rural Household Consumption

China has been seriously affected by the world financial crisis of 2008, and the economic growth still hasn’t recovered to the level before 2008 by the end of 2015. A sound economic growth structure should be driven by investment, export and consumption, however, in our country, the growth of economic mainly depends on investment and export, and insufficient consumption delayed the economic growth. The prosperity of consumption can largely promote the economic development, and China has 618.66 million people in rural areas, so its consumption potential is more huge. Meanwhile, the savings deposits of urban and rural residents in China grow sharply year by year, while the consumption gap between urban and rural residents is widening. The research showed that the imperfect social security system, especially the difficulties and high expenses in medical care since the 1990s are the main reasons that the residents particularly the rural residents in our country reluctant to spend. To effectively reduce the suffering and economic burden of farmers and real alleviate the difficult and expensive in medical care, China has experimental implement the New Rural Co-operative Medical System(NCMS)since 2003. Since the new rural cooperative pilot implementation, this work has achieved remarkable results and not only reduced poverty phenomenon caused by all kinds of diseases, but also reduced their financial burden which is helpful in promoting rural household consumption.Research about social security, especially the effects of medical insurance on consumption already has a long history, however about the effects of the New Rural Co-operative Medical System on Rural Household Consumption is less. There are many factors affect consumption, and the effects of health insurance on consumption are complex and various, and different scholars hold different opinions. In most of the research, empirical study has achieved a dominant position, while most of them pay less attention to the influence mechanism and transmission route. Therefore, this paper focuses on the impact mechanism of the NCMS on consumption, and adopts CHARLS micro survey data to construct a model in order to carry on the empirical analysis, and finally puts forward some perfect proposals of the NCMS.This paper mainly contains four parts:The first chapter analyzes the research background, purpose and significance, summarized the domestic and foreign experts on social security on consumption impact studies as well as medical insurance, especially the influence of NCMS on consumption, provides a theoretical background and research support for the following discussion, and propose innovations herein may exist and shortcomings.Chapter two introduces the concepts of rural cooperative medical care and consumption, and analyses the influence mechanism of the NCMS on consumption. The implementation of the NCMS not only reduce the medical burden of farmer by reducing the proportion of self pay healthcare expenditure, especially alleviate the heavy spending burden of families that suffering from serious illness, in order to have a direct impact on the consumption structure and level, but also lower the risk of future expectations and reduce household precautionary savings, improve farmers’health and increase human capita, so that the NCMS also have an indirect impact on the consumption structure and level.Chapter three adopts CHARLS micro survey data to construct model for empirical analysis on the basis of previous research. The study found that the implementation of NCMS not only promoted the demand for participating the health care of NRCMS, but also helped to reduce the medical expenditure burden. Generally speaking, the implementation of the NCMS not only improved the farmers’health level, but also made a positive impact on rural household consumption standard and improved the consumption structure. However, its impact on the perfection of consumption structure is limited, and the promotion of NCMS didn’t increase the spending on commercial insurance in rural areas.The fourth chapter points out the deficiencies of NCMS in improving consumption, such as more outpatient compensation limited, large hospital reimbursement level disparities, limited reimbursement scope, difficult settlement in remote treatment, individuals pay major parts of serious diseases, and the increase of funding levels may has a potential negative impact on consumption after the integration of urban and rural medical insurance system. Then, puts forward several solutions, such as optimize the compensation system, enlarge the scope of medical care reimbursement directory, adjust health insurance directory according to social development, control the excessive growth of individual payment after the integration of urban and rural residents basic medical insurance system and so on.The innovations of this article are:First, systematic analysis the impact of NCMS on consumption routes and mechanisms, including its impact on the consumption level and consumption structure, and the current research in this field is few. Second, the analysis of the impact of NCMS pays equal attention to social security theory and empirical, and focus on the relevance and value of the countermeasures. However, there are still some limits in this paper. Due to the limited data, the empirical analysis only select the four-year data of two provinces and the time span is small; the endogenous problem of the empirical analysis is not completely eliminated and still needs to be improved in future studies.