A Empirical Study Of Residents' Income Distribution Effect On Consumption Demand In Jiangxi

The relationship between income distribution and consumption demand is always an issue that the economists concerned very much,and there have been a lot of research on this issue both in theory and in empirical.In the theory of Keynes,he discussed the relationship between the consumption demand and income level.With subjective intuition, Keynes also said,consumers have diminishing marginal propensity of consume. But Keynes did not say much further about how income distribution affect consumption demand.After Keynes,one after another,there were some hypotheses intend to improve earlier consumption theories, in these hypotheses, it focus on the important influence that income level impact on consumption demand.Of course,involves the standpoint that income distribution effect consumption demand more or less.In the 20th century,which Known as the "Keynesian left,"the Post Keynesian School studied the relationship between income distribution and consumption demand.They think that income distribution is also a very important factor in affecting consumption demand as disposable income,they also built a mathematical model which revealed the relationship between income distribution and consumption demand.But so far, there have not form a mature theoretical system on how income distribution affect consumption demand. The existing theories have not given the clear relationship between income distribution and consumption demand. The theory of income distribution affect consumption demand is still an intuitive hypothesis,and haven't got validation of empirical study.In China's current economic, residents income distribution disparity expands unceasingly and the consumption to GDP ratio declines continuously.To this fact, this article will take JiangXi province of China for example, disscuss focuses on the empirical about the relationship that the income distribution affect the qualitative and quantitative of the consumption demand.This article will first introduce some concepts about the distribution of income and consumption demand.After that, through deep analysis to the Western consumption theory consumption, it will reveal the function mechanism that hidden in the theory through which division of income influence consumer demand. As a result, the basic standpoint of the income distribution affect consumer demand is based on that the marginal propensity to consume decreases along with the income increases progressively. Following on, this article will focus on the research of the income distribution and consumption demand of Jiangxi province,then use a series slightly dull form to show the state of them. As a rasult,since the reform and opening up, the income distribution gap of Jiangxi residents has been wider and wider, mainly embodies in between urban and rural residents, city internal residents,countryside internal residents,different profession residents, different local residents. But,on the other hand, the proportion of resident expense which occupied land area GDP ratio has decreased obviously,finally caused the insufficient of consumer demand. Whether the resident consumer demand rate drop is caused by the income distribution gap wider? Then,we though of the standpoint of the income distribution effect consumer demand,that is, the marginal propensity to consume decreases along with the income increases progressively.Therefore,then we use the data which come form the disposable income level of the urban and rural residents, net income level grouping,has carried on the estimate to the low, middle and high three levels,and has made the supposition examination. Results showed that we can't refuse the supposition of the marginal propensity to consume decreases along with the income increases progressively. After that,we established a expense function model contain the variable that reflect the division of income distribution disparity,and using the data estimated the model and make the supposition examination. Draws the conclusion, the income differential expands can cause the resident consumption rate to drop.At last, after the conclusion of the resident consumption rate and the resident income differential size assumes the inverse correlation, we will put forward some policy proposal on how to improve income distribution and adjust the income differential to raise the resident consumption rate,including perfect legal regime,adjust the excessively high income of the high income social stratum; perfecting social security system, increasing the transfer payment dynamics to enhance the low income earner's income; expanding the proportion of the medium income social stratum; speeding up consummates the market economy development and so on.