Research On Income Distribution In China Based On Lorentz Curve Theory Model

In January 2014, the national bureau of statistics released the 2013 national gini coefficient, in 2013, China’s national income gini coefficient is 0.473, according to the data published in 2013 the residents’ income gini coefficient values from 2003 to 2012 are all above 0.4, the maximum value is 0.4910 in 2008. According to international standard, 0.4 is acknowledged cordon, the gini coefficient over 0,4 meanslarge income gap.From this set of data shows that the income gap between rich and poor in our country is large. The purpose of this paper is to measure income distribution difference based on the theory of lorenz curve model and to study China’s urban and rural residents income distribution problem.This paper first reviewed the domestic and foreign theory of income distribution, Respectively to the western economic theory of income distribution(including the income distribution theory of classical economics, income distribution of new classical economics, Keynes and its successor’s theory about income distribution, welfare economics theory.)andthe contemporary theory of income distribution. I discuss the development of the lorenz curve systematically. Next part, this paper shows the related theoretical model based on packet data on empirical applications both at home and abroad, and then select the four classic lorenz curve model for empirical analysis.The empirical part, this article try to study the income distribution problem from 1990 to 2012,this paper choose the data every five years in this period, that is the data in 1990, 1995, 1995, 2005, 2010 and 2012,and then import our country urban and rural income distribution data in this six years into the four classic model derived from the above part.This paper use nonlinear least square method to model the parameters.Based on model test results back mean square error(MSE), mean absolute error(MAE) and the maximum absolute error(MAS), I select the optimal precision of model-model 3this model significantly improve the accuracy and its effect is best of all.Based on model 3 and urban & rural income distribution data in this six years, I calculate the urban & rural Gini coefficient respectively, the results show: 1. during the period, rural gini coefficient is always higher than the urban gini coefficient, namely relative to urban residents, rural residents income distribution is more uneven;2. Analysis from the time dimension, The trend of the niml residents income inequality began to slirink between 1990-2000, began to widening from 2005 to 2010,began to smooth after 2010; In 1990-2012 China’s urban residents incomedistribution disparity presents a trend: first widening significantly and then gradually nai Towing, the trend ofgini coefficient confirms this fact.The two conclusionsare consistent with the results of the statistics data released by national bureau, at the same time, according to the good fitting precision in our country income distribution data,this model can be a good application to research the problem of the income distribution in our county. Finally I put forward some Suggestions in policy.