Title: Income Disparity and Urban-rural Demonstration Effect of Consumption Behavior: An Empirical Test Based on Provincial Panel Data in China
Abstract: This paper employs PMG panel error correction method to make a detailed econometric analysis of urban-rural income disparity and the demonstration effect of classified consumption based on the provincial panel data from 2000 to 2010.It reaches the conclusions as follows: firstly,the urban demonstration effect on total rural consumption is quite significant,which works mainly through consumption related to culture and education,and entertainment products and services,and secondly through consumption related to medical care,household appliances and services,and transportation and communication,but the urban-rural interaction mechanism of consumption related to food and clothing is not significant,while the urban-rural correlation of consumption related to housing is even negative;in addition,long-term demonstration effect differs from short-term one;secondly,urban-rural income disparity plays a inverse role in the demonstration effect of total consumption level,but weakly positive roles in consumption related to food and transportation and communication.Finally,based on the study abovementioned,it raises relevant policy suggestions.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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