How The Fiscal Expenditure On Education Effects The Income Distribution And The Empirical Study On It

Since reform and opening, China has made a remarkable achievements in economy and social development. The market economy has taken a steady and mature development when the people's living standard has also been greatly improved. But at the same time, the income distribution gap has reached a high level and is still increasing. In accordance with the atandards of the United Nations organization, the income distribution gap in China has reached the warn level. So researching on the income distribution is important and significant. In the factors influencing the income distribution, the education situation of the residents is very important. And the fiscal expenditure on education effects the education situation of the residents a lot as it's a important part of education expenditure. So this dissertation researches on the effect of the fiscal expenditure on education to the income distribution.In the first part, it takes a literature review of related theories. The theories contain the theories about the Gini Coefficient and the calculate of it, the factors including the fiscal expenditure on education etc. which effect the income distribution. And then it summarizese the theories and points out the lack of them and the improvement in the dissertation.In the second part, it analysises how the fiscal expenditure on education affects the income distribution. In the ideal situation, it gives related hypothesises. Then the Gini Coefficient is expressed as the quantity and salaries of different education levels(which contains the fiscal expenditure as a variable) in many the-same-age groups. And then it analysises how the variable(the fiscal expenditure on education) effect the function. And the conclusion of this part is that it doesn't effect the Gini Coefficient in the ideal situation. And in non-ideal situation, it gives some different hypothesises. The function can be expressed differently as the fiscal expenditure on education effects the labor market differently in short term and long term. And the conclusion of this part is that in non-ideal situation the expenditre effects the Gini Coefficient through its effect to the demand curve in short term. And in long term it effects thouth demand curve and supply curve which also depend on the education situation and income distribution before.In the third part, it takes the empirical study on it. It takes time series to analysis how the Gini Coefficient effected by the fiscal expenditure on education and other factors. It takes appropriate form model and variables. After some necessary tests, it takes the regression and analysis it. The conclusion is that in short term the effect from the expenditure to the Gini Coefficient(which because its effection to the demand curve) is significant. And the more expenditure makes the lower Gini Coefficient. But in long term the effection is not significant which maybe because of its opposite effect to the demand curve and the supply curve in the same time and it appears as there's no effect.In the forth part, it takes a normative analysis on the structure of the fiscal expenditure on education. It takes mathematical analysis on it. And it gives the optimization strategy uder the goal of better income distribution and explains the significance of it.In the fifth part, it summaries all the conclusions in the dissertation and gives some ideas of further research.