Factor Price Distortions, Income The Distribution And Consumption Demand

In recent years, factors price distortions, income distribution and consumption demand has been the academic circles and the government in our country focus of macroeconomic reality and problems. For income distribution, China is facing labor remuneration how to keep up with the development of economy,make the factor income distribution and income distribution rationalization. For the consumption demand, our country since the last century90years, the consumption demand of residents continued to slump has seriously not conducive to China’s economic development and transition, resulting in the dependence of investment and exports of China’s development pattern more and more serious. For the factor price distortions, capital price distortions and labor price distortions in the long-term high, serious impact on China’s economic development and the transformation of economic structure. Implementation of the allocation of resources market, avoid the intervention of the government, is the key to China’s marketization reform. This paper aims to clarify the relationship between factors price distortions, income distribution and consumption demand from the theoretical and empirical analysis, and provides a new idea for improving the income distribution pattern, slump crack consumption demand and the transformation of the mode of economic development, to provide theoretical support for promoting factor market. Conclusions of the study are as follows:Firstly, building model, theoretically analyzes the factors price distortions effect on income distribution (including income distribution and factor income distribution) and consumption demand, analysis showed that the factors price distortions aggravated the imbalance in the distribution of income of our country, is not conducive to ease the current inadequate of consumption demand.Secondly, using the production function method, to measure the1990-2012provincial capital, labor and total factor price distortions, the analysis found that China’s factor price distortions exist several important inflection point, namely the1993capital price distortions, distort the price of labor and total factor price distortions reached "the highest peak value"; the2004small stages "crest the highest value";2008" the trough minimum value ", inflection point of labor price distortions is more obvious.So we think that the economic reform the important economic event and the crisis etc will have an impact on China’s factor price distortions. From the fluctuation tendency, total factor price distortions and capital price distortions in1993reached the "peak" and then entered a long period of slow decline, but after entering the new "inflection point in2004" began to rise slowly, after2008entering the fast rising period; for long-term, labor price distortions is a rising trend, although experienced2004inflection point began a slow decline, but in2008and then returned to rise.Third, the relationship between factor prices distortions and income distribution are tested, results show that, during the sample period, total factor price distortions and capital price distortions aggravate our country residents income distribution imbalance,while the relationship between the labor price distortions and imbalances income distribution is nonlinear, follow the evolution curve of the inverted "U" type, that accompanied the rise of labor price distortions, the imbalance of residents income distribution has experienced first pull after narrow.Fourth, the empirical analysis of the relationship between factor price distortions and factor income distribution, the results showed that:1)Total factor price distortions and factor income distribution imbalance was smooth U-shaped relationship’s can be seen from the scatter diagram is in most of the U-shaped bottom, only a few points on the right.2)Capital price distortions significantly promote the rise of labor compensation share, help alleviate the factor income distribution imbalance.3) Labor price distortions significantly inhibited the rise of labor compensation share, is an important reason of factor income distribution imbalance.Fifth, the empirical analysis of the impact of factors price distortions and ncome distribution on consumption demand. Study shows that:First, factor price distortions especially the rise inlabor price distortions significantly detrimental to improve our level of consumption, is an important reason for our continued sluggish consumption in recent years; Increase in the share of labor compensation will help improve China’s consumption demand, indicating that if it can alleviate the factor income distribution imbalances that currently exist, help solve the ongoing downturn in consumption.The second is the rising degree of factor price distortions to expand the gap between consumption and investment, not conducive improving the level of consumption, and an increase of the share of labor compensation can reduce the gap between consumption and investment, contributes to the rationalization of consumption and investment.Finally, on the basis of theoretical analysis and empirical analysis, propose this paper contains policy recommendations.