A Study on Relationship between Public Investment and Resident Consumption based on Structural Equation Modeling Analysis

摘要

This study focuses on the relations between public investment and resident consumption, which is based on the theory of government financial and the existing academic point of view on the correlationship between fiscal policy and consumption. In order to achieve the exactly objective conclusion, the study choose structural equation model to do the analysis work. At the end,the study get the conclusion that public investment in China has boosted the growth of consumption and improve the quality of people's life in a long run. The study give the suggestion that government should also increase social security input to improve the social security system, regulate real estate prices and support the development of affordable housing and housing rental market.