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

Chen Zongsheng; Wu Zhiqiang

doi:doi:10.11648/j.eco.20190803.14

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

Chen Zongsheng, Wu Zhiqiang

Published in Economics (Volume 8, Issue 3)

Received: 4 December 2018 Accepted: 6 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.

Published in	Economics (Volume 8, Issue 3)
DOI	10.11648/j.eco.20190803.14
Page(s)	114-127
Creative Commons	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), 2019. Published by Science Publishing Group

Keywords

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

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APA Style

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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ACS 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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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://article.sciencepublishinggroup.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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TY  - JOUR
T1  - The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China
AU  - Chen Zongsheng
AU  - Wu Zhiqiang
Y1  - 2019/09/24
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190803.14
DO  - 10.11648/j.eco.20190803.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 114
EP  - 127
PB  - Science Publishing Group
SN  - 2376-6603
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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Author Information

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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APA Style

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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ACS 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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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

Copy | Download

@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://article.sciencepublishinggroup.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}
}

Copy | Download

TY  - JOUR
T1  - The Trends of the Average Propensities to Consume and Urban-rural Consumption Inequality in China
AU  - Chen Zongsheng
AU  - Wu Zhiqiang
Y1  - 2019/09/24
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190803.14
DO  - 10.11648/j.eco.20190803.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 114
EP  - 127
PB  - Science Publishing Group
SN  - 2376-6603
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  -

Copy | Download