The Effect Of Social Security Expenditure On Urban Residents’ Consumption

In recent years, with the rapid development of economy, the consumption rate is declining. A serious imbalance shows between consumption and investment scale, insufficient domestic demand continuously for a long time become the restriction of current economic to achieve faster and better. Therefore, gradually achieve by economic growth is driven by investment to consumption, investment and export, which is the inevitable choice of economic development in our country in the future. To this end, how to promote residents’ consumption, forming new development advantage, become the domestic and foreign scholars focus on the problem.There are many factors which can affect residents’consumption, disposable income, consumption concept, consumption habits. However, the lagging of the social development and the imperfect of social security system are also the important factors that affect the residents’consumption at the present stage in china. As a social safety net and stabilizer of the social security system, can affect the residents’disposable income, expectations and so on, increase the residents’sense of security, weaken the residents’uncertainties of the future, thus promote the consumer demand. From the current reality of expanding domestic demand, sustaining economic growth, the basic pension, basic medical, subsistence security system directly stimulate domestic demand. Insufficient consumer demand and saving rate keeps high, investigate its reason, it not only include the frugal living tradition culture, but also the concern about all kinds of social risks that may occur in the future, such as they may have enough money to ensure their elderly life, healing and the basic living after they losing the source of income. Therefore, to really boost domestic demand, the key is to improve the ability of consumption and consumer confidence and change the economic development mode. Only in this way, the national economy can develop faster and better.This article first introduces the relevant theories of consumption and the mechanism of social security on residents’consumption, including the income distribution effects of social security affect consumer behavior, social protection and residents’ precautionary savings, social security and liquidity constraints. From the aspects of analysis, we learn that the change of residents’consumption practice is closely related with social security, social security has an important impact on the residents’ consumption. Next respectively from several aspects introduce our country social security expenditure and the present situation of the urban residents’ consumption. Through the empirical analysis which is based on the date from 1993 to 2012, through the unit root test, co-integration analysis and granger causality test on social security measure analysis and the relationship between the residents’consumption.Research result shows that:social security has a promoting effect on the consumption of urban residents, but the promoting effect is limited; there is one-way granger causal relationship between social security expenditure and urban residents’consumption. Investigate the reason, it is the low social security level, the small social security coverage and the change of social security system lead to the residents’ uncertainty of the future becoming strengthen. Finally, the article gives some corresponding policy recommendations in view of the present problem of the social security system in our country.