Study on the relationship between redistributional fiscal expenditure and disparity between urban and rural area

摘要

Disparity between urban and rural area can be rectified and made up by redistributional fiscal expenditure. Divide disparity between Urban and Rural Area into consumption disparity and income disparity, it can be found that redistributional fiscal expenditure can significantly narrow consumption disparity while its effect on income disparity is not significant. A higher inequality demands a higher redistributional fiscal expenditure. China's higher Disparity between urban and rural area is related with a lower redistributional fiscal expenditure, which can't meet its country's practical needs.