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Empirical Analysis Of Consumption Function Theory In China

Posted on:2013-06-09Degree:MasterType:Thesis
Country:ChinaCandidate:Q YuFull Text:PDF
GTID:2249330395955756Subject:Political economy
Abstract/Summary:PDF Full Text Request
As the important part of GDP---consumption, is the starting point of production and the end point of the production. In China, the lack of domestic consumption is the obstacle of the Economic Growth, no matter the government and the folk pay much attention to this issue. The research of consumption not only contributes to extend the domestic consumption, but also helps the growth of China’s economy and improves the people’s living standard. And the consumption action is decided by the consumption function, which is the effect factor of consumption with formula. Furthermore analyze and research of consumption can support the solution of shortage issues. This paper first introduces some famous Consumption Function Theory:Keynesian absolute income theory (AIH), the permanent income hypothesis (PIH), the relative income hypothesis (RIH), lifecycle Hypothesis (LCH), as the stand for the latter model establishment. Then it has analyzed the current situation of Chinese consumption and predicted the future trend. Next, based on the statistics of national income and consumer spending from1980to the present, make the empirical analysis, and establish four consumption function models, further analysis of the consumer behavior of the transition period of our residents. And pointed out that the consumption patterns of residents in China more in line with the model of the life cycle hypothesis, and the reasons for the further analysis shows that the consumer credit and excessive consumption of Chinese residents has begun to take shape, and finally combined with China’s actual situation, put forward a number of meaningful policy recommendations.
Keywords/Search Tags:Absolute Income Hypothesis, Relative Income HypothesisPermanent Income Hypothesis, Life Cycle Hypothesis, Regression Analysis
PDF Full Text Request
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