Study On Moderate Income Gap Of Optimal Consumption Per Unit Of Effective Labor

Nearly 40 years of reform and opening, the economic growth in China gained the success that attract worldwide attention, at the same time, Structural imbalance problems affecting the sustainable development also appear gradually. Such as, the insufficient consumption in aggregate demand structure, the unbalanced capital structure in aggregate supply, the income gap enlarge in distribution structure, those problems are particularly prominent. Nowadays, How to release the reform dividend to promote the economic structure more balanced and achieve the new normal growth has recently drawn more and more attention from researchers. This paper studied the influence of income distribution on capital structure and consumption per unit of effective labor(CPEL) in balanced growth, and put forward the policy suggestion.In the part of fundamental research, based on the MRW model of endogenous growth theory with capital structure as the pathway, this paper established the analysis framework of income gap effecting CPEL in balanced growth. The framework mainly includes the theory model of capital structure influencing the CPEL in balanced growth, the mathematical analysis model of income gap effecting capital structure, the comprehensive analysis model of one sector and two sector of income distribution effecting CPEL in balanced growth. The author argues that when the positive role of macro adjustment of capital structure of government dominating department(GDD) is weak, the influence of income real gap affecting capital structure is powerful. Analysis on the whole, the income gap affects CPEL presents inverted “U” type change.In the part of empirical research, based on comprehensive estimation the capital real structure and the income real gap in Chinese overall and typical regional, this paper used the biased estimation of ridge regression method to measure the coordinated capital structure of maximization CPEL, and established model to calculate the moderate income gap which was consistent with the capital structure. The evidence suggests that the moderate Gini coefficient in China overall is 0.3837, and 0.3135, 0.3404, 0.3837 in Chinese eastern central and western regional respectively. The current income real gap in china overall is higer than moderate income gap and promotes the capital real structure positive deviates from coordinated capital structure, thus suppresses the CPEL in balanced growth. The author argues there are obvious regional differences in the relationship between income real gap and moderate income gap.The following policy suggestions are put forward in this paper, China should play the positive role of the GDD and society dominating department to strengthen the human capital investment and optimize the capital structure. The moderate income gap should be used as the goal to promote the regional reform of income distribution mechanism. Efforts will be made to quicken the transformation of GDD’s functions to expand the space for the reform of moderate income gap.