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Empirical Analysis of Influence Concerning Fiscal Expenditure on Consumption of Residents

Wang Zai-tang, Wang Rui


This paper considers the influence of people’s livelihood fiscal expenditure on consumption by modifying the intertemporal substitution model. The average per capita consumption of Chinese residents is regarded as explained variable, while per capita expenditure on education; per capita health care expenditure and per capita expenditure on social security are regarded as the explanatory variable. The per capita incomes, per capita savings balance, the proportion of government spending and tax burden are as control variables. We analyze the detailed influence of three expenditures on household consumption. Through the empirical analysis the influence of the people’s livelihood fiscal expenditure on consumption, we put forward the corresponding economic strategy that promotes urban and rural residents’ consumption.


Intertemporal substitution model, People’s livelihood fiscal expenditure, residents consumption.

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