An Empirical Study On Mathematical Economic Models Of Income Disparity Between Urban And Rural Residents In China

Since the reform and opening up, China’s economy sustained steady and rapidgrowth, people’s living level improved significantly. The China’s income distributionpattern has changed greatly. However, the income gap between urban and rural residentsshows a trend of continuous expansion overall. Now, we must pay much attention in theincome gap between urban and rural residents. In order to keep the national’s stabilityand sustainable development, we should give some solutions to narrow the income gapbetween urban and rural residents, and then, we will maintain the income gap in areasonable range.The research about the income gap between urban and rural residents in existingliterature mainly include the following two aspects, one aspect is that people measurethe extent of the income gap between urban and rural residents and predict the future ofthe trend, the other aspect is that people study the specific causes of the income gapbetween urban and rural residents. Most of the previous research stay in the descriptiveanalysis on the influencing factors of the income gap between urban and rural residents,the stability analysis of the trend of income gap between urban and rural residents is yetto be developed. In this context, we establish some mathematical economic models toanalyze the relationship between the evolution of ownership structure and residents’income, And will give the stability analysis. And then, the paper puts forward somecountermeasures and suggestion based on the empirical analysis. The main researchconcludes:1. On the basis of the influencing factors of the distribution between urban andrural residents, using the relevant data from1998to2009, we establish a regressionmodel to analyze the relationship between the evolution of ownership structure andresidents’ income. In addition, using Co-integration analysis and Grange causality test,the paper makes an empirical work on the relationship between urban-rural dualeconomic structure and urban-rural income disparity. The results show that ownershipstructure and urban-rural dual economic structure are two fundamental influential factors in continuous expansion of urban-rural income gap. Meanwhile, the dualeconomic structure and the income disparity between urban and rural residents existsone-way causality.2. By establishing a control model to make predictions about the trend of China’sUrban-rural income gap and analyzing stability of the model. The results show thatChina’s Urban-income gap will grow asymptotically in a longer period in the future,however, this gap will be controlled within a certain range.Through analyzing the influencing factors of the income disparity between urbanand rural residents and the stability of the cybernetic model, the paper make someconclusions and give some suggestions at last.