The Dynamic Analysis Of Government Health Investment’s Effect On Urban And Rural Residents1Consumption Structure

In recent years, with the continuous development of social economy in our country, the totalconsumption of Chinese residents has been on the rise. But because of the social security system isnot perfect and other factors, making China’s consumption rate decreased year by year,consumption structure of urban and rural residents is slow, which influences the sustained andhealthy economic development in china. Especially the serious deficiencies in the currentproduction capacity structural surplus, domestic economic situation, optimize the consumptionstructure, boosting household consumption has become more urgent need to address the problem ofgovernment. Based on this, the Chinese government through the increase of health expenditure hasinvestment, in order to guarantee the basic health needs of residents, the release of residentsconsumption ability in household equipment, education and entertainment projects, so as to realizethe optimization of consumption structure, boosting consumption policy.Under this background, the article from the reality of our country, since the reform andopening-up of our country through the review of government health input and the consumptionstructure of urban and rural residents development trends and characteristics of the basic approach,theoretical basis, separately from the government intervention in the health care market ofgovernment intervention in the health care market and government intervention in the health caremarket of real economic significance. Discusses the necessity of the government health input, andfind the theoretical foundation for the study of the change of government health investment andconsumption structure.On the basis of theoretical analysis, according to the national31provinces and cities in urbanand rural areas2004-2011relevant data to establish Panel Data model, separately from theperspective of urban and rural government investment in health impact on residents consumptionratio and consumption structure. The results show that: the government expenditure for health careaccounted for between urban and rural residents consumption rate correlation is positive, means thatthe government increase health investment can improve the consumption rate of government healthexpenditure; also have some impact on the residents’ consumption structure. Specifically, for urbanresidents, increase government investment in health care can reduce the consumption of food tototal consumption, improve the living, clothing, household equipment, education and entertainmentconsumption accounts for the total consumption; for rural residents, increase governmentinvestment in health care can reduce the communication expense accounts for the total consumption,improve the living, family, education and entertainment equipment consumption accounted for thetotal consumption. According to the analysis above, our country government health expenditure isto optimize the consumption structure of urban and rural residents with basic health care needs ofthe residents of urban and rural residents consumption, enhance the ability of the original policy, forthe government to further increase spending on health has boosted consumption, the policy ofstimulating domestic demand and provide data support. Finally, the article from continue toincrease the intensity of government health expenditure, speeding up the reform of the medicalsecurity system and narrowing the income gap between urban and rural areas and other threeaspects for the government to further increase spending on health advice.