TI  Vol.4 No.1 B , February 2013
A Research on the Relationship between Urban Households’ Income and Expenditure in Hainan
Abstract: APC (Average Propensity to Consume) refers to the ratio of dividing consumption by income during the same period, which reflects the percentage of consumption in current residents’ income. This paper analyses the APC and builds up models about the dynamic relationships between urban residents’ income and consumption expenditure in Hainan, with panel data model, choosing per capita annual disposable income as explanatory variable, per capita living annual ex-penditure as response variable, and data from the year of 2004 to 2010. The research shows that different income levels bring different impacts on consumption, and provides theories of adjusting the consumption structure, expanding do-mestic demand and promoting the economy development.
Cite this paper: J. Zhou and D. Zhang, "A Research on the Relationship between Urban Households’ Income and Expenditure in Hainan," Technology and Investment, Vol. 4 No. 1, 2013, pp. 12-17. doi: 10.4236/ti.2013.41B003.

[1]   A. Blinder, “The Relationship between Distribution Effects and the Consumption,” The Journal of Political Economy, Vol. 132, No. 3, 2002, pp. 447-476.

[2]   D. Valley, A. Philips, “Studies in Inequality of Income and Consumption Function: Some Cross-Country Results,” The Journal of Political Economy, Vol. 133, No. 6, 2003, pp. 132-157.

[3]   P. Musgrove, “Income Distribution in countries During the Period of Economic Reform and Globalization,” The Journal of Political Economy, Vol. 102, No. 3, 2005, pp. 34-105.

[4]   F. Sun, D. H. Yi, “Analysis of Income Distribution Effect on Chinese Urban Households Consumption Structure,” Statistical Research, No. 3, 2000, pp. 9-15.

[5]   J. Li, “Quantitative Analysis of Income Gap Effects on Consumption Demand,” Journal of Quantitative & TechnicalEconomics, No. 9, 2003, pp. 5-11.

[6]   Y. Zhang, R.. D. Hu, “Analysis of Chinese Residents’ Income Differentials and Consume Demand,” Forecasting, Vol. 22, No. 2, 2003, pp. 3-6.

[7]   L. Y. Chen, “Income Distribution and Underconsumption,” Inquiry into Economic Issues, No. 4, 2005, pp. 23-25.

[8]   Hainan bureau of statist, “Hainan Statistical Yearbook,” Chinese Statistics Press, Beijing, 2005-2011.

[9]   H. Cheng, “Analysis of Panel Data,” In: H. Cheng, Simple Regression with Variable Intercepts, Cambridge University Press, New York, 2003, pp. 27-57.

[10]   D. H. Yi, “Data Analysis and Eviews Application,” In: D. H. Yi, Panel Data Model, Chinese Statistics Press, Beijing, 2002, pp. 201-204.