A Study On Externalities Of Government Behavior And The Widening Of Residents' Income Gaps In China

Since Reform & Opening-up, the widening of residents' income gaps in China and its related social phenomenon has become a focus of social attention. It is very important to strengthen the research of the income gaps problem, to deepen the understanding on the income gaps and to find solution on the view of economics.In view of this, as an external entry points of theory, the externalities of government behavior to be used to study the residents' income gaps in China : First, to research the content, characteristics, classification, form, causes, measurement of the externalities of government behavior, the paper creates a complete theoretical system. Secondly, the paper inspects the externalities of government behavior on the widening of residents' income gaps in China on the basis of the empirical analysis on the widening of residents' income gaps in China. Finally, in order to regulate the widening residents' income gaps in China, achieve economic development and common prosperity, the article explores the corrective and preventive mechanism of the government behavior's negative externalities.The basic point of the paper is that government behavior profoundly impacts on the changing trend of residents' income gaps in China in addition to economic growth. These effects of government behavior are the performances of the externalities of government behavior on residents' income gaps in China. In this sense, one can say that the widening of residents' income gaps in China is the reflection of the externalities of government behavior. Thus correcting and preventing the negative externalities of government behavior could be considered as a solution to adjust the residents' income gaps in China. At last, I hope this article can provide a theory reference that is credible and close to economic reality and policy recommendations for China's economic development and the government's macro-regulation and control.