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 ...
