Civilization Fiscal Expenditure and Residents' Consumption——Based on Provincial Panel Data from 1995 to 2007

Based on the research background of constructing the finance of the people's livelihood,financial expenditure are divided into people's livelihood expenditure and non -people's livelihood expenditure in this paper first;Secondly,the article has theoretically investigated the relationship of the people's livelihood,financial expenditure and consumption demand;In the end,the paper establishes the provincial-level panel data model between the government's financial expenditure and consumption demand of urban and rural residents,and uses the empirical data of China's 29 provinces except Xizang and Chongqing from 1995 to2007 to test: People's living expenditure has a significant positive effect on the consumption demand of urban and rural residents;Non-people's livelihood expenditure has a positive effect on the consumption demand of urban residents,however,it hasa opposite effect on the consumption demand of rural residents. But correlation between non-people's livelihood expenditure and the consumption demand of residents is not conspicuous at this stage in the China.