National Income Distribution And Insufficient Consumer Demand Of China

Abstract:The phenomenon of insufficient demand of China has been concerned in recent years, while insufficient demand of consumer demand has been the focus attention. In view of the facts that the reduction of the share of household income in national income distribution and the enlargement of household income gap, from the point of distribution of national income,the paper attempts to establish an mathematical logic system,econometric model, investigate the effect of two factors on consumer demand comprehensively.Through literature review, we find previous researches mainly focused on the individual income distribution structure or the income gap of residents of the relationship between consumption. According to the division of the national income distribution in meaning, the distribution of national income actually includes two meanings, on the one hand is the income distribution between country and residents, being manifested by the proportion of resident income in national income distribution; on the other hand is the distribution of income between the residents, being manifested by the resident income gap. Considering that the distribution between country and residents is another important factor affecting residents’consumption demand, studies involving both affect consumption demand are not enough.Therefore, the article makes it as a starting point, considering the factors of these two aspects and on the basis of previous studies to explore. Initially, the paper establishes a mathematical model of the influence of share of household income in national income distribution and the resident income gap on consumption demand; and applying the data from1985to2012of our country, which includes dweller rate of consumption, share of household income in national income distribution, Gini coefficient and related data, empirical study the influence of the two factors on the insufficient of consumption demand and the policy effect of the two factors in promoting consumer demand. The empirical result shows that, at the present stage of our country, the share of household income in national income distribution decreased is the main factors affecting consumer demand insufficient, the income gap between residents is secondarily. Finally, based on the analysis of the measurement results, the thesis gives some policy recommendations.