The Livelihood Process of Local Government Fiscal Expenditure and Rural Consumption——Theoretical Analysis and Empirical Test Based on Total and Category Expenditure

From the perspective of total and category expenditure,this paper analyzes the local government expenditure on livelihood and rural consumption from the macro perspective,and makes an empirical test using the panel data of 31Chinese provinces from 1998to 2011.The results are as follows:the local government livelihood expenditure has promoted rural consumption effectively,especially this crowding-in effect on enjoyment consumption which mainly includes education,culture,entainment and health care is bigger than basic survival,including clothing, food and housing.But the categories of livehood expenditure have different effects:education and health expenditure have a significant crowding-in effect on rural consumption,while culture and social insurance expenditure do not have a significant effect.So while steadily expanding the proportion of livehood expenditure,the goverment should pay attention to improve the expenditure structure and increasing rural residents' income to improve their consumption level.