Can the New Rural Endowment Insurance System Improve the Residents' Living Standards?: Analysis Based on the ELES Model

From the perspective of rural consumption structure,this paper uses the ELES model to investigate and analyze the consumption data of rural residents from G province before and after the implementation of the new rural endowment insurance system. We find that,the rural residents' marginal propensity of consumption of the food,clothing,living have decreased,while the marginal propensity of health care has increased,which reflects that the rural residents' consumption structure has been improved. Meanwhile,the elastic of marginal consumption of non- necessities gets larger. However,the ratio of basic consumption to their total revenue has not changed significantly. Hence,the rural residents' living standard has been improved. Besides,the government should increase the input to promote the new rural endowment,carry out the urban and rural endowment insurance coordination and try to set up a pension system of dynamic adjustment.