Research On The Impact Of The New Rural Social Endowment Insurance On Rural Residents' Consumption

In the case of weak investment and blocked exports;consumption has become an important engine of stimulating national economic growth.For a long time,China's dual economic structure has separated the living environment of urban residents and rural residents,and the rural population have lagged far behind the urban population in employment competition,income increase and consumption expenditure.How to keep the economy steady by guiding rural residents to increase consumption is a significant issue.The New Rural Social Endowment Insurance is the social security system of national level,and it plays an irreplaceable role in easing social conflicts,narrowing the gap of system inequality and service inequality between urban and rural,and meeting the demands of rural residents' retirement life.So,based on the Life-cycle Hypothesis Theory,Precautionary Saving Theory and Overlapping Generation Model,using CGSS survey data,this paper research the impact of The New Rural Social Endowment Insurance on the,consumption of rural residents from the theoretical and empirical aspects.Research shows:(1)The mechanism of The New Rural Social Endowment Insurance affecting the consumption of rural residents are in two main ways.Firstly,income effect.By giving the elderly retirement pensions and encouraging rural youth for non-agricultural employment,it increases the disposable income of rural residents and stimulates consumption.Through the adjustment of income distribution and under the high marginal propensity to consume of low income rural residents,the total consumption of the society and the demand elasticity of some commodities have been improved.Secondly,psychological effect.By reducing the probability of occurrence of various types of uncertainty,it boosts consumption confidence of rural residents and increase people's willingness to spend.(2)The New Rural Social Endowment Insurance has achieved some success in the design of the system;especially in the fund management,but the Pension Replacement Rate is too low,which needs to be improved.The per capita consumption and consumption structures of rural residents have changed obviously,reaching the goal of comfortable life.The consumption of rural residents is different in regions and income level,and the consumption capacity of low income residents is in expansion.(3)The empirical analysis based on the some relevant data of CGSS shows that The New Rural Social Endowment Insurance has no effect on the household consumption of rural residents aged 60 and above,and has a weak crowding effect on the household consumption of rural residents aged under 60,which is more than 4.7%.The psychological effect of The New Rural Social Endowment Insurance mainly exists in the rural residents under the age of 60,and the income effect is different because of the different family characteristics,but is not very obvious on the whole.To solve these related problems,the following policy recommendations:(1)Integrate social endowment insurance of rural residents and urban residents and optimize the insurance system design in participation,financing and pension further.(2)Promote the structural reform of agricultural supply-side,improve the income structure of rural residents,and enhance the level of income.(3)Create a good consumption environment in rural areas,and encourage rural residents to have a moderate consumption.