Analysis On Impact Of Family Insurance And Social Insurance On Consumption Level Of Chinese Resident

Consumption,investment and export is known as the "troika" of economic growth,but our country has overly depended on investment and export for a long time.Our consumption level is relatively low,from 1997 to 2015,the rate of it continually going down.This kind of economic growth pattern is abnormal and unsustainable,so it is necessary to raise the consumption level of residents.Enhancing consumption level of residents itself has extraordinary significance,for it is people's ideal and pursuit to improve national welfare.Utility brought about by consumption will raise social welfare level,solve the problem of optimization of resource allocation and stabilize society.We can also narrow the gap between rich and poor while household consumption level ascending.To raise the consumption level of residents,we need to make clear the factors that affect it.Life-cycle theory believes that people arrange consumption at different stage of life according to income to live a relatively decent life.Wealth is accumulated from the unconsumed portion of income,so consumption can be expressed as a linear combination of family wealth and income.General family wealth includes material wealth and human capital.It plays an important role in the absence of social insurance to cope with future uncertain consumption.People are able to exchange material wealth to money to sustain daily life when income is insufficient.This is family insurance we mentioned in title,which embedded in inherent characteristics of family.This article separates insurance provided by family and society and,together with the impact of income,explains differences in consumption level among families.The empirical test is divided into two parts.The first part is based on the data of the CEI Net from 1990 to 2016,and the second part used findings of CHFS,The former is time series data,and the latter is cross-sectional data.They confirmed and supplemented each other.The article uses cointegration test,regression analysis and hierarchical linear models in accordance with different characteristics of data,and draws several conclusions.The support ratio has no significant effect on household consumption level,while savings scale and social insurance fund income increase with consumption level simultaneously.The growth of five explanatory variables(education,real estate,automobiles,financial assets and deposits)reflecting family factors can effectively promote household consumption level.Effects of pension insurance and medical insurance on consumption are different.Although social insurance can affect consumption alone,it cannot influence the explanatory variables even the coefficient of savings other than income.It implies that social insurance cannot substitute for family insurance,and people still need to accumulate material assets as well as promoting personal capability to deal with future risks.Enrollment does not necessarily improve household consumption level.Families that participate in one of social insurance have lower average monthly consumption than ones that participate in none of them while controlling other factors.Last thing worth mentioning is the impact of income on consumption.The coefficient of income is not significant,indicating that its effect is likely to be concealed by the impulse to accumulate wealth responding to future risks.Even if it is fact,we can also use appropriate measures to dispel people's worries about future and make families have a larger consumption scale matching their income.Now I would like to list possible innovations of the article.1.When analyzing the family,I use physical capital and human capital to describe its characteristics,and link these characteristics with consumption.There are few studies about it,but single examination of physical capital or human capital cannot adequately reflect the whole picture of family,for both of them can affect people's ability to resist risks.2.I add social insurance to original model and divide samples according participation in social insurance.This approach does not consider the effect of social insurance on consumption as an explanatory variable,instead embedding it in model for social insurance may change the value of coefficients.So we illustrate more issues through sample division and hierarchical linear models.After theory analysis,literature review and empirical test,the article made several suggestions based on conclusions.Raising household consumption level needs to cope with family and society at the same time.As far as the family is concerned,it is necessary to guide the flow of high-quality resources into each family.to return wealth to people,and to improve the ability of families to resist risks.If all of them are done,we can reduce precautionary savings,thus releasing consumption potential.As far as society is concerned,it is necessary to deepen the reform of social insurance system and increase investment in social insurance funds.Appropriately lighten the burden of insurance fee,so as to prevent the income of citizen from falling due to social insurance.