The Empirical Analysis Of Chinese Consumption Growth On Overlapping Generations Model

This dissertation concentrates on the empirical research of Chinese consumption growth according to overlapping generations model. Selecting Chinese economic growth time series data from 1985 to 2000, a China empirical overlapping generations model is constructed according to basic model coefficient such as capital stocks, the rate of return on capital, the coefficient of relative risk aversion. Using this model, this dissertation has conclusions as follows: Firstly, Chinese inhabitants do have the rational consumption behavior. Secondly, a substitutional accounting method of the young persons' real consumption-saving rate is found that is the YOCR in the model. Thirdly, the model explains the reason why Chinese government failed to prompt consumption by lowering interest rate. Fourthly, China macro-economy accords with dynamic-efficiency condition especially according to long time tendency, however, it is deviating this dynamic-efficiency condition since 1998. Lastly, the recently years' deflation phenomenon comes from the dynamic-inefficiency and the lower coefficient of relative risk aversion (i.e.the value of 9).