Research On The Relationship Between Social Security, Household Consumption And Economic Development

This article study the relations between social security and economic development of China based on vector auto-regression model by introducing an intermediate factor —Resident consumption.Firstly,calculated out each comprehensive index of economic development and social security and each weights of sub-index by AHP. Second,by ADF test,build VAR model,determine the optimal lag order,Model smooth test, Cointegration test,Impulse Response,Variance decomposition we found that there is a close relationship between this three factors.Generally speaking, they can promote each other.Economic development is the foundation, which determines the level of consumer promotion,determines the emergence and development of social security undertakings;At the same time the development of social security undertakings take an significant role in improving the consumption level and promoting economic development.now,the cause of social security in our country is still in the stage of growth and the crowding out effects to China's economic development is still in a very low level.so we can get the conclusion that the promoting effect of social security on economic development has not been played out and the inhibitory effect of social security on economic development is less than the promotion of social security to economic development.we should improve our financial social security expenditure.