The Impact Of Service Price Inflation On Residents' Welfare In Urban And Rural China

In recent years,rising prices of services,with the improvement of living conditions,residents pay more attention to the expenditure of consumer goods.Residents of the daily necessities of consumption gradually declined,while the service consumption as the representative of the proportion of high-end consumption is increasing.Therefore,it is necessary to study the impact of higher service prices on the welfare of the residents.This paper studies the effect of service price rise on the welfare of residents from two perspectives.Firstly join the demographic characteristics of the QUAIDS model as the foundation,a collection of nearly a decade of urban and rural residents consumption survey statistics,to urban and rural residents service consumption behavior characteristics were studied;Minot welfare utility model is introduced in the model is based,analyzed all kinds of service price fluctuation of urban and rural residents welfare effects.Secondly,from the perspective of subjective well-being,using the new data from the CGSS survey in 2013,the effect of service price increases on the well-being of residents was studied from the whole.We can use Ordered Probit model and marginal effect analysis method to analyze the impact of service price rise on the welfare of residents.Main conclusions:(1)The change of service price is consistent with the welfare effect of urban and rural residents.When the service price rises,the result of the welfare effect is negative;the result of the welfare effect is positive when the service price falls.The size of the welfare results is mainly related to the increase in the rate of service prices,the price elasticity of the Hicks,the amount of consumption spent on various types of consumer goods and the proportion of consumption.The effect of long-term welfare effect on the fluctuation of various service prices has a buffer effect,but the overall effect is not obvious.(2)Due to the diferences of price fluctuations and the elasticity of service consumption,there are significant differences in welfare losses between urban residents and rural residents.On the whole,mainly due to the large amount of service consumption of city residents,leading to family services,medical services and education and entertainment of the welfare loss will be greater than the value of rural residents.However,due to the difference in the proportion of consumer spending and the difference in the rate of service price rise,the loss of rural residents' service consumption is greater than that of urban residents.(3)The high social welfare cost of service price rise has a significant impact on the residents' subjective well being.Average service prices rose 1%,which requires GDP growth of up to 3.8 points to make up.Service price increases will reduce the subjective well-being of residents,the average overall well-being of residents decreased by 1.115%.The rise of service price has a great influence on the subjective well-being of urban residents.From the low income group to the high income group,the impact of service price rise on the subjective well-being of residents is decreasing.