The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China
Economics
Volume 8, Issue 3, September 2019, Pages: 114-127
Received: Dec. 4, 2018; Accepted: Sep. 6, 2019; Published: Sep. 24, 2019
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Authors
Chen Zongsheng, Nankai Institute of Economics, Nankai University, Tianjin, China
Wu Zhiqiang, Party School of the Jiangxi Provincial Committee of CPC, Nanchang, China
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Abstract
As the average propensities to consume between urban and rural residents are different, the consumption inequality and the income inequality inverted-U curves are different in the process of urbanization (economic development). It shows urban-rural consumption inequality passes the turning point of the inverted-U curve during 2000 and 2002, which is about 4-6 years ahead of the urban-rural income inequality inverted-U curve. The urbanization rate (economic development level) of urban-rural consumption inequality is lower than that of urban-rural income inequality at their turning points, while the urban-rural consumption equality at its turning point is larger than the urban-rural income equality at its turning point. This paper argues that, on the premise that the urban-rural income inequality is certain, it can improve the actual welfare of residents by reducing the urban-rural consumption equality. The feasible measures may be increasing the residents’ (especially rural residents’) average propensity to consume.
Keywords
Average Propensity to Consume, Consumption Inequality, Income Inequality, Urbanization
To cite this article
Chen Zongsheng, Wu Zhiqiang, The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China, Economics. Vol. 8, No. 3, 2019, pp. 114-127. doi: 10.11648/j.eco.20190803.14
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Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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