The Analysis Of The Influence On Household Consumption Rate By Income Gap In China

Household consumption rate of our country goes down gradually for many years, and economic growth depends on invest and export more and more. Without the powerful support of consumption, national economy will not go on developing healthily. There are many factors that cause low household consumption rate. Among the factors, the influence of the widening income gap on household consumption rate is very obvious. The research on the relation of income gap and household consumption is the leading content of the paper.In order to research the relation between income gap and low consumption, this paper first makes an analysis on household consumption and income gap respectively. The paper makes a research on China's residents' consumption structure and household consumption rate, also makes a comparison of China's consumption with international standards using comparative analysis;makes a research on income gap between rural and urban areas,into rural areas,into urban areas,inter-industry,and between different areas; also makes a comparison of income gap with international standards using comparative analysis. Then explores the mechanism of action of income gap on household consumption rate from western consumption theory, from Keynes's absolute revenue theory, theory of new Cambridge school and the theory of Marx's economic crisis. At last, through co-integration model makes a test on the consumption and gini coefficient data. The paper makes an analysis of the influence between income gap and household consumption by granger causality test,using empirical analysis method.The paper makes a conclusion on the analysis ahead that : The household consumption rate is lower,the gini coefficient is larger, and there is a long-run equilibrium and negative correlation between gini coefficient and household consumption rate. This paper gives many suggestions to narrow the income gap of residents and improve the household consumption rate on the base of practical applicability and feasibility. For example, increase farmers' income,increase the supervision of monopoly industry,accelerate the speed of the establishment of social security system,improve labor remuneration in primary distribution and perfect the adjustment function of income tax revenue, etc.