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POSITIVE ANALYSIS: EFFECTS OF INCOME DISTRIBUTION ON CHINESE URBAN HOUSEHOLDS' CONSUMPTION

Zhang Ji-hai

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Abstract

Based on positive analysis, this paper shows that our income divergence is negatively related to total consumptions, and policies aimed at reducing the gap will increase the total consumption. So, we should try to increase the income of lower income individuals, enlarge the population of middle income, and shape an olive-type of income distribution, while maintain the economic efficiency.

About this research paper

What this paper is about

Based on positive analysis, this paper shows that our income divergence is negatively related to total consumptions, and policies aimed at reducing the gap will increase the total consumption. So, we should try to increase the income of lower income individuals, enlarge the population of middle income, and shape an olive-type of income distribution, while maintain the economic efficiency.

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Available abstract

Based on positive analysis, this paper shows that our income divergence is negatively related to total consumptions, and policies aimed at reducing the gap will increase the total consumption. So, we should try to increase the income of lower income individuals, enlarge the population of middle income, and shape an olive-type of income distribution, while maintain the economic efficiency.

Key concepts: Economics, Consumption (sociology), Income distribution, Distribution (mathematics), Demographic economics, Net national income, Adjusted gross income, Income elasticity of demand

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POSITIVE ANALYSIS: EFFECTS OF INCOME DISTRIBUTION ON CHINESE URBAN HOUSEHOLDS' CONSUMPTION — Research Paper | ScholarLens