The Research On Correlation Of Metastatic Expenditure And Income Distribution Disparity In China

Since the implement of reform and open policy , the economy developed in high speed ,in the meantime, continuous distribution of income gap exists, it's not only precipitated many social contradictions, but also influence the further deepening of reform and the building of a harmonious socialist society. Preventing the income distribution gap and realizing fair distribution of income, become not only an important goal of macroeconomic policy in the current, but also one of the central proposition academic focus in economics, sociology and politics. The use of fiscal redistribution of income distribution gap narrowing the mechanism to promote social justice is the meanings of government functions, including metastatic spending as tool of targeted government income redistribution has the corrective action with pertinence. However, in recent years, our government increased metastatic spending dynamics, but the residents income distribution gap is not effectively relieve, it is gradually enlarged and deteriorating trend. Metastatic spending as a branch of fiscal expenditure, what is the correlation between it and income distribution gap, how to optimize its scale and structure, how to make it fully exert the regulation effects of income distribution, it is a current issues that need to be resolved.Paper from two aspects of theory and empirical analyzed the relationship of metastatic expenditures and income distribution disparity. Firstly, review the research progress of literature on narrowing the income distribution gap expenditure policy, points out the deficiency of existing research literature, and find the thesis research direction and key. Secondly, from the system theory of metastatic expenditure and income distribution relationship, analysis the metastatic expenses and income distribution mechanism of interaction, elaborated the theory basis.On this basis, the paper analyzes income distribution gap's measure methods, develop trend, reasons and the scale and structure of metastatic expenditure, while reviewed metastatic spending in narrowing the income distribution gap between aspects of the realistic manifestation. By establishing VAR economic model, use unit root test, cointegrate test, Granger causality test and impulse response function econometric methods to empirical test metastatic expenditures and narrowing the income distribution disparity relationship. We find that in year1990 to 2009 metastatic spending for distribution of income from the regulation played adverse effects. According to the empirical results, find out the main problems of our metastatic spending in narrowing the income gap. Meanwhile, analysis the use of metastatic spending policy to narrow the income distribution gap overseas, find out the the advanced experience of the United States, Japan, India and Latin America countries.Finally, on the basis of qualitative and quantitative comprehensive analysis, find out the revenue in fair distribution of metastatic spending policy orientation: improving social security spending in metastatic expenditure, establishing securing the proportion of provincial plan as a whole of the supply of social security system; Strengthening tax collection and transfer to low-income community; Strengthening tax expenditure policy's transparency and standards.