Research On The Impact Of Fiscal Education Expenditure On Household Consumption

Under the background of knowledge based economy,the demographic dividend advantage of China's rapid economic development in the early stage has gradually disappeared.Education,as the main way to accumulate human capital,providing powerful endogenous force in cultivating high-quality talents and optimizing population knowledge structure in China.Education provides strong knowledge and intelligence in developing China's economy and upgrading consumption structure.The new technology,new industry and new business forms that emerged the reform and transformation have been transformed into powerful propellers to help the economy take off,thus promoting continuous optimization and upgrading of China's economic structure.Compared with the indirect promotion of education to the economy,consumption plays a more direct role in the economy.China's economic development data in recent years show that consumption has become the absolute primary driving force for economic development as the “stabilizer” and “ballast stone” of economic growth.However,there are many problems,such as lower resident consumption rate,insufficient fiscal education expenditure,and excessive education burden for residents at this stage.Under the above background,the paper introduces the theory of education cost sharing,human capital and household consumption,and conducts statistical analysis and empirical analysis on fiscal education expenditure and household consumption.Using the panel threshold model and the panel data of 28 provinces and municipalities directly under the central government from2007 to 2016 to explore the impact of fiscal education expenditure on household consumption under different inflation rate.The regression results of the threshold model show that there is a nonlinear relationship between fiscal education expenditure and household consumption.Under different inflation rate,the impact of fiscal education expenditure on household consumption is different.Therefore,in order to steadily increases the residents consumption level and full plays the role of consumption in economic growth,we puts some policy recommendations.These suggestions are as follows: increasing expenditure in financial education,promoting the scale and quality of education;coordinating regional educational resources,promoting the coordinated development of education in provinces;steadily advancing economic reforms,stabilizing consumer expectations;improving social security systems and enhancing consumer confidence.At the macroeconomic level,it is necessary to properly use fiscal and monetary policies to control inflation rate and macroeconomic control.