A Research On The Impact Of China's Social Insurance Expenditure On Urban Residents' Consumption

Consumption is an important driving force for China's economic growth.Therefore,continuously releasing the consumption power of residents and increasing the consumption propensity of residents is the need to promote China's economic development.Studies have shown that there are many factors that affect household consumption,such as the disposable income level of residents,the quality of infrastructure and public services provided by the government,the price level and expectations of future life uncertainty.The social insurance system provides residents with certain guarantees in terms of pension,medical care,unemployment and maternity.Most scholars believe that this will reduce residents' concerns about the future and will have an impact on their consumption decisions.Therefore,the relationship between the social insurance system and household consumption has gradually become a research hotspot.Some scholars have found that a perfect social insurance system will increase residents' consumption propensity and residents' consumption levels.From this point of view,this paper takes social insurance expenditure as the research object,and uses the combination of theoretical analysis and empirical analysis to study the relationship between social insurance project expenditure and urban residents' consumption.Firstly,this paper defines the concepts of social insurance,urban residents and consumer expenditure,summarizes the theory of public goods and related consumption theory,and analyzes the mechanism of social insurance expenditure on household consumption.Secondly,using the normative analysis method to analyze the consumption status of urban residents in China and the status quo of social insurance expenditures;using comparative analysis method to analyze the current situation of urban residents' consumption and social insurance expenditure in eastern,central and western regions of China,and finally find out the problems of social insurance expenditure in China.Thirdly,based on the classic life cycle model,this paper introduces social insurance expenditure to construct a new consumption function,and selects the panel data of 30 provinces from 2006 to 2017 in China,and uses the fixed effect model to conduct empirical research,and finally,it is found that China's social insurance expenditure has a positive effect on urban residents' consumption,but its promotion has project differences and regional differences.Finally,based on the above analysis,this paper proposes the following suggestions for optimizing social insurance expenditure in terms of promoting household consumption.After the analysis of the article,it is concluded that China's social insurance expenditure will promote the consumption of urban residents,but there are project differences and regional differences in this role,and the paper puts forward the policy recommendations for optimizing social insurance expenditures,hoping to contribute to the improvement of China's social insurance system,making it truly a "protective umbrella" for Chinese residents,thereby stimulating the consumption of Chinese residents and promoting the rapid growth of China's economy.