Title: Empirical research of income and consumption problem of urban residents in Chengdu based on ECM mode
Abstract: Using the annual data between 1978 and 2007 in Chengdu an empirical research based on the error correction model is made on the relations between the disposable income of the urban residents and the consumption expenditure per capita.The results show that the consumption expenditure per capita of Chengdu urban residents and disposable income of the two variables has a cointegration relationship.The disposable income per capita is the most fundamental reason that impacts the consumer spending.The error correction coefficient is negative and consistent with the reverse correction mechanism making the short-term consumption policies null and void.Therefore the government must take effective measures to improve the disposable income of the residents and optimize the supply and consumption structure in order to achieve the policy objective of the expanding domestic demand.
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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