A Study On The Influence Of Public Education Expenditure On Residents' Consumption In China

In recent years,consumer spending on education has been increasing,and the proportion of expenditure has risen sharply.This has gradually become a major consumer of consumption and a new consumer hot spot.It has even become a burden on some households and has affected household consumption expenditure.The quasi-public product,education that should have assumed more responsibility for the country,has become a burden on residents.The development of education cannot be separated from the support of the state finance.Public education expenditure is an important part of China's public financial expenditure.However,there is still a problem of insufficient investment in public education expenditure in our country,which restricts the development of education.It cannot satisfy residents' increasing demand for education and increases the education expenditure of residents.Based on this background,this paper mainly studies four parts:theoretical basis,current situation analysis,theoretical analysis and empirical analysis.Theoretical analysis shows that public expenditure on education has a crowding-out effect on residents' education consumption,and that residents' education consumption has a income effect and a substitution effect on other residents' consumption;then empirical analysis is used to verify this theoretical analysis,first using China's 1990-2016 time.The sequence data verify that public education spending will crowd out education spending for residents.Then using data of urban and rural provincial panel data from 2007 to 2016,it is concluded that residents' education spending has a substitution effect on the daily consumption of clothing or household equipment,while urban residents have a positive effect on the income and utility of transportation and other supplies.Rural residents have a positive effect on food,transportation,communication and clothing consumption,which has a positive effect,and there is a slight gap between urban and rural areas.The results show that the inhibitory effect of China's education consumption on survival-type consumption is decreasing,but it will still crowd out other residents' consumption to meet the demand for education.Through the analysis of this paper,in order to solve the crowding out of public education expenditure on the education effect of residents and the indirect impact on the other residents of the consumption.China should adjust its fiscal structure,increase financial support for education,expand the years of implementation of compulsory education,and increase investment in education in remote areas and rural areas.Actively encourage the diversified subjects to invest in education,and reduce the crowding out effect of insufficient education investment on residents'education consumption.