The Study On The Widening Of The Income Gap's Influence On The Consumption Inadequate Of Chinese Resident

With the growing situation of the economics, the chinese residents'income level have been improving,while the income distribution gap has also been expanding. It was mainly reflected in that the income gap between urban and rural, regions and industries have becoming expanding. In order to describe the situation clearly,We used the data from 1978 to 2007 to calculate the rate of income gap and the Gini coefficient in these three aspects we have mentioned above . On the other hand, as one of the"troika"to prompt the growth of our economy, the domestic effective demand, especially the residents'consumption has always been sluggish in recent years.It can be reflected in the low rate of final consumption and the declining tendency.What's more ,the residents' consumption prospensity has also been declining year by year since the 1990s.By analyzing in depth of the Western classical consumer theory, including Keynes's absolute income hypothesis, Duesenberry's relative income hypothesis, life-cycle hypothesis of Modigliani and Friedman's permanent income hypothesis, Campbell and Mankiw's "λhypothesis ", we find out the conclusions implied,that is, the Widening of the income gap will lead to inadequate consumption.Then we linked the classical theory with the real situation of our country to find the inherent mechanism:he widening of income gap will tend to reduce the consumption tendency, enhance the motives of saving and bequest and improve the liquidity constraints, through the Contradictions between the supply and demand structual, even the inflation to lead to consumption inadequate.We Constructed three linear regression model and used the ordinary least square method to verify that the widening of the income gap between urban-rural; region-region; industry-industry do have reflected the residents' consumption,and the correlation between the two phnomenon was negtive. So we proved the conclusion that the widening of income gap will lead to consumption inadequate again from the empirical point of view. It means that in order to effectively boost consumer demand to maintain economic growth, we need to narrow the income gap. On the basis of this conclusion,we put forward some corresponding policy recommendation at the end of this thesis.