Research On Property Income Gap, Economic Effects And Influencing Factors Of Chinese Residents

Since the reform and opening in 1978, the Chinese residents have obtained the increasing life quality, and China has realized a historic leap from food and clothing to the well-off, which are the a great rapid development of national economy. At the same time, residents’ income has been increasing and now the residents wealth accumulation is on a new high level. It is worth to notice that the growth of property income has become the the fastest growing source of income than others during the past decade. And the source of income from property also has become increasingly diversified. This is a inevitable result of country’s financial system improvement,investment channels extension, and deepening economic reform.As a measure of a market-oriented economy and an important indicator of national affluence,property income has already been academia and the public’s attention. Previous research results show that the proportion of property income is too small in the condition of a great economy expansion and rapid growth. There is already a big absolute property income gap between urban and rural areas, between regions, and also between different resident groups, and the gap will be larger in the future. The property income inequality should be solved as quickly as possible. So we focus on the way to regulate property income rational growth, the way to effectively control the income gap between the internal structure of property income, and the way to alleviate the economic problems and social conflicts arise throughout the process by distribution adjustment and optimizing the economic and social environment.This paper is divided into seven chapters, the main contents are as follows:Chapter 1 is the basis of a literature review and theoretical property income. First of all we comb the ancient and modern definition of "property" in the meaning and scope. we discriminate the content and features of the property income, and discriminate logical relationship among income, property and property income. Secondly, we elaborate the theoretical basis of property income shown by classical economics, vulgar economics, neoclassical economics. Then we elaborate the theoretical basis of property income gap, including income regulation on three levels,inference of income gap by modern distribution theory, comprehension of income gap in structuralism and relationship analysis between fairness and efficiency. Finally we review the existing research results.Chapter 2 is an overview of income from property development and structural features of the Evolution. In China, property income structure is still irrational, urban-rural gap, regional disparity,the gap between income groups is still widespread. To solve the income distribution, primary distribution and redistribution of income, the adjustment of industrial structure and improve the institutional system, both multiple channels to increase property income, but also reasonable to avoid further expand its income gap.In chapter 3 we focus on the income gap caused by property income. Firstly we discuss the effect on investment, consumption and economic growth by property income in our country. We deduce that property income makes not only private income increase, but also a greater income gap because of the Matthew Effect. Secondly we introduce the income gap index and Gini coefficient decomposition. Finally by calculating and decomposing the Gini coefficient we find that the property income, whose Gini coefficient is on a high level, aggravates private income inequality.But the income gap is still under control because the property income has not played an important part in income structure.Chapter 4 is an analysis on consumption effected by property income. We set up a VECM model to analyze the impact of Chinese residents property income in household consumption. Both urban and rural households sample empirical analysis shows that, in China, a non-property income is the main determinant of consumer demand, property income promoting consumption is not significant conclusions.In Chapter 5, according to the theory of primary distribution, we discuss the finance development effect on resident property income both in urban and rural area on the view of primary distribution. In the study we find that financial development has significant positive effect to property income growth. Standard financial system is the market foundation of urban resident property income growth. But the elasticity from financial innovation to rural resident property income is still on a low level. To significantly increase Chinese resident property income both in urban and rural area, we must improve the financial environment, regulate the financial system,improve the rural financial market, establish rural investment and financing system, which are multivariant investment channels and financial instruments to satisfy urban and rural residents.In Chapter 6, we analysis on institutional factors effecting on China’s current system of property income based on income redistribution theory. The result shows that ownership,urbanization, social security system are significantly promote resident property income per capita.And our tax structure needs to adjust because of the negative correlation between income tax and property income. Education stock index has a weak correlation to property revenue, but it is still an important influence factor. Trade openness of a province, the degree of capital market development and economic growth are significant positive correlated to urban resident property income per capita.Chapter 7 is a advanced experience comparative analysis on the property income structure,distribution institution, the system of agricultural subsidies, financial and tax system, social security system of developed countries base on the above empirical tests.In this paper, we gain the conclusions as following :1. The evolution of our residents and property income is closely related to the process of institutional change, institutional change the presentation of the dynamic and innovative to better explain the evolution of property income of course.2. Chinese resident asset structure is still unreasonable. Urban-rural gap, regional disparities,the gap between income groups are still widespread, low proportion of middle-income class is quite far away from the anticipating "olive" social class structure. To solve China’s wealth and income distribution inequality, it is necessary to not only increase multi-channel property income, but also avoid a further widening of the income gap. That should be started from the initial distribution and redistribution reform, and the adjustment of industrial structure and improvement the institutional system.3. Theoretically property income will promote private investment, consumption and economic growth, and will enlarge income gap. Empirical research shows that the Gini coefficient of property income on a high level in our country, and property income aggravate income inequality. But the gap caused by property is still under control because property income has make little contribution to income distribution.4. In China, the non-property income is the main determinant of consumer demand factors that promote property income on consumption is not significant, property income of urban residents is not high proportion of total income, household consumption has not yet formed the short-term positive enhancement.5. Financial support is within the scope of the initial distribution of income, residents gain important market-based property income. Because of the dual economic structure characterized by significant rural rationing scarce financial resources, financial development lags behind the development of financial innovation is slow, the stock market, the financial markets are not standardized, less elasticity financial indicators;6. Ownership system, urbanization, social security systems are significantly promote the increase of urban residents per capita property income. Personal income tax is negatively correlated to property income, and education stock index is weakly correlated to property income. Regional trade openness, capital market development degree and economic growth are significant positive correlated to property income of urban residents per capita.7. Land ownership system and rural social security system are imperfect. And there is restriction from taxation system to the property income of rural residents. Urbanization index plays a positive role to property income of rural residents. Grasping the urbanization guiding ideology can effectively improve institutional arrangements in countryside, and enhance farmers’ property income.