The Research On The Relationship Between Tax Structure And Residents Consumption Rate In China

Western scholars have conducted systematic researches on consumption behavior and function,This paper briefly expounds some classical theories of consumption,also compared these theories with each other.And then establish the new consumption model from the experience of domestic and foreign scholars to analysis the relationship between tax structure and residents consumption rate,and put forward relevant suggestions in the end.This paper takes the panel-data model,which contains 30 regions from 1999 to 2104.The control variables are as follows:income level?income growth,the income gap,real interest rates,inflation,social security and population structure.This paper establishes the static and dynamic panel-data model one by one,considering some aspects we choose the dynamic model to analysis the results.In the process of estimate,involves some relevant tests,such as F test?Hausman test?Sargan tset?Hansen test etc.The empirical results obtained the crucial conclusion: high proportion of indirect tax is one of the causes that leads to low residents-consumption rate in China.In the view of control variables,the increase of income level does not necessarily increase the ratio of consumption,still depends on the income gap,the enlargement of income gap significantly decreased the ratio of residents consumption,The result of real interest rate and the children's dependency ratio are consistent with many scholars' research conclusions,Elderly dependency ratio does not conform to the life cycle hypothesis,Social security coefficient is positive,but not significant.At the end of this paper,several suggestions are put forward:Firstly,Optimizing the tax structure step by step to raise the proportion of direct tax;Secondly,implementing a proactive fiscal policy to bridge the income gap;Thirdly,expanding social security expenditure to form the social security expectation.