The Effect Of New Rural Insurance On Rural Residents' Consumption

Along with getting into new century,the situation of global economy and inner country have had big changes.Our former ascending type depengding on vast investment is no longer continuous,therefore,consumption will become the most powerful impetus of our country economic growth.Meanwhile,our country have numerous rural residents occupying the majority population of our country,they have great potential to consume.However,because of their level of income and imperfection social insurance system,their potential of consumption is not developed,with the New Rural Insurance popularize step by step,a large number of scholars begin to research the effect of this policy,accordingly,these researches will be helpful to our policy and the economic growth of our country.Purpose:This article based on the data of CHARLS(China Health and Retirement Longitunal Study)to study the effect of New Rural Insurance on the consumption of rural residents.However,in or out the New Rural Insurance is of the rural residents' own accord,we must take select bias into consideration when we research.This article use Propensity Score Matching to decrease these bias based on the visible characteristics.Thus,it will satisfy the conditional independence assumption;meantime,we take varities of rural residents into consideration.To sum up,the research of this article will supplement studies of the effect on the rural residents' consumption,and it will detail the effect of New Rural Insurance on rural residents' consumption.Therfore,it will be helpful to making and detailing policies.Result of article:(1)Based on the study of the whole samples,participating in the New Rural Insurance will promote the ATT of usual consumption and living consumption.But based on the studies of various groups,the effect of participating in the New Rural Insurance will be diverse to the ATT of usual consumption and living consumption;(2)No matter based on studies of which group,participating in the New Rural Insurance will not remarkably promote the ATT of durable consumer goods;(3)No matter based on studies of which group,participating in the New Rural Insurance will not promote the ATT of consumption in education?medical treatment and journey effectively.