An Analysis Of Inequality Of The Developmental Expenditure Of Urban Residents

Chinese social structure and people's living standard have improved a lot since the fast development of economy and society in China. But some factors have influenced the harmonious society and these factors include unbalanced area development and large gap of citizen's income. To search for the difference of different areas and income levels of citizen's welfares helps the government take efficient macro-economic control measures. Lower social management cost can create a good economic society environment and guarantee the scientific development view to be put into effect and in order to set up a socialist harmonious societyIn short time, the volatility of citizen's income is large and Immediate Profit cannot be effectively reflected the wealth level of citizens and expected income. So the income cannot effectively reflect the welfare of citizens. The research on equal distribution of citizen's income cannot reflect the satisfaction of hierarchy of needs of citizens. But the research on the consume level of citizens stand out the intuition and pertinence.From the view of structure, the expenditure of citizen's consumption can be divided into two kinds. The first one is living safeguard consumption, which is to satisfy the basic living needs. This kind of consumption is the most basic kind of consumption and it can be preferably satisfied; the other one is the hedonic and development consumption, which is to satisfy the spirit needs. This consumption cannot be satisfied until the basic needs have been satisfied. Engels classified the living materials into three kinds:living materials, hedonic materials and developing materials. And he proposed the consume rules which means the consumption has its own rules from basic needs to hedonic needs, and finally developing needs. The expenditure of guarantee consume is different from the expenditure developing consume. Following the changes of consumption structure, the citizen's consume behavior will becomes correspondingly changes. This paper uses data from pubic yearbooks. It uses the modeling theory of panel data, Generalized entropy index and Gini coefficient to research the developing consume expenditure and equilibrium. The whole paper consists of five chapters. It is organized as follows:Chapter one is the introductory section, which presents the research background, research purpose and meaning, the framework of the passage, the innovations of the article. Chapter two stylized the consume styles of developmental expenditure of urban residents'of China. Descriptive statistics of the data from yearbooks gives useful information to the further analysis. Chapter three researched the consumption models of urban residents in developmental expenditure. Chapter four Generalized entropy index and Gini coefficient to research the developing consume expenditure and equilibrium. Chapter five is the conclusion and the research prospect of the paper, and it summaries the whole paper and puts forward some political inspiration.The paper shows that the urban residents'behaviors of developing consume expenditure is correspondent to classical consume theories. The factors of income level and consume of earlier period and expectation plays an important role. The developing consume expenditure of urban residents is restricted to disposable income of current period and it is correspondent to Absolute Income Hypothesis. The developing consume expenditure has been influenced by level of the earlier period. Ratchet effect show remarkable and it is correspondent to relative-income hypothesis. The behaviors of developing consume expenditure of urban residents will suffer bad effect because of the bad macro-economic expectation and it is correspondent to Precautionary Saving Hypothesis.There are remarkable differences among urban residents of different areas. Urban residents who lives in developed areas has favorable condition to improve the consume expenditure structure and to increase developing consume expenditure. While in the backward areas, the urban residents are cautious to the developing consume expenditure behaviors.With the increasing of income level year by year, the quota of developing consume expenditure of urban residents in consume expenditure is constantly increased. But there are remarkable differences among the consume behaviors of the different income level of urban residents. Relative to low-income people and high-income people, the urban residents who are middle-income people are cautious to rise the developing consume expenditure. The consumption tendency of each income stratum has presented the'structure of inverse straw-hat'. The areas differences of the developing consume expenditure of urban residents has increased. Among which, the differences among class interval which are among the provinces of east areas and middle-areas and west areas is the main factor of area imbalance.The imbalance of Developing consume expenditure is larger than the imbalance of consume expenditure. With the increasing of the ratio of developing consume expenditure of consume expenditure, the imbalance of consume expenditure has increased. The imbalance of all kinds of expenditure in developing consume expenditure has show great difference and among which the medical expenditure distributes relative balance. Each income status has large medical expenditure but it is easy to create the pressure of expenditure that the lower income status have.The imbalance of expenditure distribution of transportation and communications and cultural entertainment is large. Both of them have the nature of productive consume expenditure. The imbalance of current period consume may cause more unfairness in the future. The changes of the inner structure of developing consume expenditure is the main factor which causes imbalance of developing consume expenditure.According the conclusion of the research, it should to take pertinence measures and to fell the residents consume needs and to improve the residents' welfare level. To maintain social harmonious stability and national economy constantly development are the principal measures. To enhance the construction and perfection of social security systems can stabilize the resident's consume confidence and improve consume model. It should to continually carry out coordinated development policies and to promote economic development and to improvement of human living in the relative backward areas. It should to care about the difficulty of large pressure on expenditure of medical of poor families, to perfect medical insurance and social security system. It should to care about the imbalance of distribution of'productive consume expenditure'. It should to enlarge the public expenditure and to provide more free education, training and information release platform. These can make them develop together.Different polices should be made by the authority to promote the raise of the welfare of all segments. For the lower income residents, it should to increase their income level in order to satisfy their basic consume needs. For the medial income citizens, it should to enhance the stabilization of their income and safeguard their consume confidence. For high-income ones, it should to positively guide the consume action and to avoid unrealistic competition in expenditure or resource waste. And at the same time, in order to adapt to the transformation and upgrade of residents consume structure and to adapt to the rise and fall of rules of industry, it should formulate pointed industry development polices.