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The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China

Received: 04 December 2018    Accepted: 06 September 2019    Published: 24 September 2019
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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.

DOI 10.11648/j.eco.20190803.14
Published in Economics (Volume 8, Issue 3, September 2019)
Page(s) 114-127
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Average Propensity to Consume, Consumption Inequality, Income Inequality, Urbanization

References
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Author Information
  • Nankai Institute of Economics, Nankai University, Tianjin, China

  • Party School of the Jiangxi Provincial Committee of CPC, Nanchang, China

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    Chen Zongsheng, Wu Zhiqiang. (2019). The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China. Economics, 8(3), 114-127. https://doi.org/10.11648/j.eco.20190803.14

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    Chen Zongsheng; Wu Zhiqiang. The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China. Economics. 2019, 8(3), 114-127. doi: 10.11648/j.eco.20190803.14

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    AMA Style

    Chen Zongsheng, Wu Zhiqiang. The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China. Economics. 2019;8(3):114-127. doi: 10.11648/j.eco.20190803.14

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  • @article{10.11648/j.eco.20190803.14,
      author = {Chen Zongsheng and Wu Zhiqiang},
      title = {The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China},
      journal = {Economics},
      volume = {8},
      number = {3},
      pages = {114-127},
      doi = {10.11648/j.eco.20190803.14},
      url = {https://doi.org/10.11648/j.eco.20190803.14},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.eco.20190803.14},
      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.},
     year = {2019}
    }
    

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    AU  - Chen Zongsheng
    AU  - Wu Zhiqiang
    Y1  - 2019/09/24
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    UR  - https://doi.org/10.11648/j.eco.20190803.14
    AB  - 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.
    VL  - 8
    IS  - 3
    ER  - 

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