Title: Income Inequality and Insufficient Domestic Demand: Nonlinear Feature of Consumer Demand
Abstract:Using urban households survey data of CHIP2007,the paper verified the nonlinear feature of China's urban residents' consumer demand by the threshold regression model,and discussed the question that if...Using urban households survey data of CHIP2007,the paper verified the nonlinear feature of China's urban residents' consumer demand by the threshold regression model,and discussed the question that if income inequality causes the insufficient domestic demand. The results show that China's urban residents' income has dual threshold mechanism on consumer demand,and shows anUshaped nonlinear characteristic: low-income and high-income stratums show a higher propensity to consumption,and the middle-income group has a lower propensity to consumption. Therefore,the income inequality may not be the main reason for the insufficient domestic demand at this stage,while the consumption structure plight of the middle-income group is likely to be the crux of the matter.Read More
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: article
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Cited By Count: 1
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