Research Article | OPEN ACCESS
Research on Relationship between China's Social Security Expenditure and Consumption Level: Based on a Nonlinear-STR-Model
Jianguo Zhao and Jia Li
School of Public Administration, Dongbei University of Finance and Economics, Dalian 116025, China
Research Journal of Applied Sciences, Engineering and Technology 2013 15:2740-2746
Received: December 07, 2012 | Accepted: January 19, 2013 | Published: August 20, 2013
Abstract
The study verifies the existence of nonlinear relationship between social security expenditure and private consumption in China from 1952 to 2009 by applying nonlinear STR model. The main conclusions found that the relationship is obviously negative, while presents remarkable stage characteristic which is frequently converted between linear and nonlinear and which can be divided into three stages. The first stage is from the year 1958 to 1963; the negative nonlinear relationship is obvious. The year from 1964 to 1978 is the second stage, but the relationship is insignificant. The relationship reconverts to negative nonlinear in third stage from the year 1979 to 2009. According to these conclusions, the policy recommendations are proposed to promote private consumption in China.
Keywords:
Private consumption, social security expenditure, STR model,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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