Research on the influence of social security system acting on Residential consumption expenditure in rural areas

From the angle of microeconomic foundation of the impact social security system acts on residential consumption expenditure, through cointegration analysis and Vector Error Correction Models (VECM) to the data from 1982 to 2006, the paper takes an empirical analysis on the short-term and long-term effect of the rural social security expenditure on the residential consumption expenditure in rural areas,. The result suggests that there is no positive impact of rural social security expenditure to residential consumption expenditure in rural areas of our country. Political suggestions are put up in the end: As to the rural social security in our country, the reformation of the system should be enhanced, the investments should be increased, so as to stimulate the consumption in rural areas, and in the end, this should become a motive to the economic development in rural areas.