Relationships between public expenditures and social equity in China
- 经济学院－会议论文 
Social harmony and equitable development are fundamentals of stable development of the society. As an important policy instrument of macro-regulation of the government, public expenditures embody the function scope of the government and thus play a great role in promoting social equity. In this paper, Gini coefficient and rural-urban income disparity are chosen as the indicators to measure social equity and public expenditures are categorized into welfare expenditures and non-welfare expenditures. The effects of welfare expenditures and decentralized financial system on social equity are discussed both theoretically and empirically. Based on theoretical analysis, empirical data are employed to test the conclusions. VAR model and Granger Causality Test are employed to test the theoretical model. ? 2011 IEEE.