The Influence of Government Expenditure for People's Livelihood:From the View of Consumption Behavior of Residents in China

The paper carries out a theoretical analysis and an empirical test on the influence of government expenditure for people's livelihood in China by building a residents consumer function.The theoretical analysis and empirical test show that the government social expenditure for people's livelihood has a significant positive correlation with the residents consumption,and it is one of the main factors which leads to the change of residents consumption.According to analysis,the government should increase the share of expenditure for people's livelihood,so as to reduce the future residents'expenditure expectation and improve the residents consumption demand.