Study On Impact Of Fiscal Subsidy Of New Rural Society Endowment Insurance On Consumption Of Rural Residents

The New Rural Society Endowment Insurance reduces the endowment concerns of rural residents. The related financial subsidy policy, in particular, not only improves the rural residents’participating enthusiasm and increases the farmers’ income, but also changes the rural residents’psychology expectations to future endowment. This thesis studies whether the fiscal subsidy system can effectively promote the consumption of rural residents and stimulate the domestic demand. Then several suggestions are put forward to improve the policy system and help rural residents achieve their objectives of being "old-age care, worry free", thus arouse their consumption desire.Based on the life cycle hypothesis and the precautionary savings theory, this thesis focuses on analyzing the relationship between fiscal subsidy of New Rural Society Endowment Insurance and residents’consumption, and explaining the effects of the fiscal subsidies on rural residents’consumption in the view of its mechanism. Based on the panel data of CHARLS in 2011 and 2013, we evaluate the influence of the New Rural Society Endowment Insurance on the consumption of rural residents. Through the above analysis, we explore the effect of the fiscal subsidy on different families (with or without subsidy), rural residents of different income levels and rural residents in different region.Results show that the New Rural Society Endowment Insurance promotes the consumption of rural residents, increases their income, and stimulates the domestic demand to some extent. Further study shows that the New Rural Society Endowment Insurance only promotes the consumption of the families that receive the pension; it progressively promotes the consumptions of rural residents of all the income levels (high, middle and low income level); the positive influence is different for different regions, i.e., the impact is deeper for the rural residents in the central region than that in the the western region, and is little for the eastern region. Finally, based on the above analyses, this thesis puts forward some policy suggestions to perfect the New Rural Society Endowment Insurance, and make it more effective.