Research on the Effect of Social Security Expenditure on Urban Households Savings
|School||Dongbei University of Finance|
|Keywords||Social Security Urban Househouls Savings Extrusion Effect Packed Into Effect|
The social security system of the China was not established until the 1980s and the time is very late compare with other countries. During the latest thirty years of exploration, we have abtained a lot of fruits. Especially in the following years, our government will speed up the steps of establishing social security system. However, considering our country’s ecnomical conditions and the fact that the China is a developing country, the social security system has some features different from others’. In the government ’the twenty-fifth’, high importance is attatched on the establishment of social security, which means the system has been transformed to a new stage from a preliminary construction.At present, it is a absolute fact that the saving amount of residents is very high, which is two trillion but in the 1980 the figure is 39.9 billion. Obvously, the speed is higher than our country’s economic growth rate. In spite of the high saving amout, people are reluctant to spent their money and our economic mainly depends on the export. How to improve people’s consumption and reduce the high saving amount has become a diffcult problem. According to other’s research results, a big part of residents’saving belongs to prcautionary saving, for example the motivation on social security、on education and buying houses. Among all these motivations, the most is on social security. From all above, we can think that our low-will consumption of residents is due to the immature social security system.With the modern social security system is more and more mature, the impact of social security on saving has attracted o lot of attention of economists. Some think that the social security will increase the number of people’s saving while some think the impact is opposite. There are also some people can not confirm the exact impact of social security on saving. From the reform and open up, the expense on social security of China is increased year by year, the corresponding changes on resident saving is the paper’s purpose. In the second chapter,I will introduce some relevant theroies on the impact of the social security on saving, including the Feldstein’s "income effect" and "welfares effect". The third chapter includs the contents of our country’s social security system and how it works. This chapter expatiates on the approaches how the social security can affects the saving with the saving motivation and income status. Charter four is the analytic demonstration of the effect from social security on resident saving in China cities and towns. We chose the relevant data from 1991 to 2009 and use the statistic software. First, we analyse this problem on the whole country in which the resident’s saving is the dependent variable and the expense on social security、the real rate、GDP and the house price are independent variables. The result is that the present social security can add the resident’s saving amount, in other word the impact is positive. Second, from different income level, the directions are different from different income level. For the first and the second high income level, the direction is negative while for other low income people the direction is positive.