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The Analysis Of The Impact Of China's Household Income Distribution On Consumption Demand

Posted on:2006-11-26Degree:MasterType:Thesis
Country:ChinaCandidate:X ZhaoFull Text:PDF
GTID:2156360152970176Subject:Western economics
Abstract/Summary:PDF Full Text Request
Under the background that every kind of current consumption theories does not clearly define the relationship between the income distribution and consumption demand, facing the reality of continuous enlargement of household income gap and decrease of consumption demand in China's economy, the paper try to discuss the qualitative and quantitative impact of income distribution on consumption demand from the aspects of both theoretical and empirical analysis.First, in the frame of consumption theories, the paper clarifies the path and mechanism of the impact of income distribution on consumption demand which implied in the western consumption theories through deduce of the best consumption path. The paper also summarizes the econometric study results of the relationship between income distribution and consumption demand, which were got by western scholars in recent years. From this, the paper draws a conclusion that current theoretical and econometric studies are inclined to support the existence of income distribution effects, that is to say, the marginal consumption propensity is the diminishing function of dominated income, rational transfer payment and income distribution policies are conductive to increase the total consumption demand.Then, based on the analysis of continuous enlargement of household income gap since China's economic transformation and the microcosmic consumer's behavior of every income stratum, the paper forms a consumption function according to the income distribution and tests it with the really statistic data of China's urban household. The result shows that the income stratum's marginal consumption propensity progressively decreases with the improvement of income, which proves the impact of income distribution on consumption demand. In order to test and verify the extent of this impact, the paper makes econometric analysis with the data of both China's city and village. As the result, the notable minus relationship between income distribution and consumption demand is proved.Last, the paper makes some suggestions on how to reduce China's income gap and further expand china's consumption demand, including: increasing the peasants' income by every possible way, improving the income of city's low-income stratum, regulating excess income, raise the proportion of medium-income stratum and establishing and consummating national unified markets.
Keywords/Search Tags:Income distribution, Consumption demand, Gini coefficient, Average consumption propensity, Marginal consumption propensity
PDF Full Text Request
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