OJAppS  Vol.5 No.6 , June 2015
The Empirical Research of Relationship between Consumption and Income for Chinese Urban Residents
Abstract: This paper studied the clustering analysis of panel data, the specification test of panel data model and its parameter estimation. By carrying out clustering analysis on panel data, we finally decided to study the relationship of Chinese urban residents’ eight income levels between consumption and income from 2007 to 2012. Based on analysis of covariance in panel data model, we built the variable coefficient panel data model and then estimated the model parameters. In this work, we can identify the relationship between consumption and income in recent years. According to the estimation results, we drew the conclusion that income disparities have important influence on urban residents’ consumption behavior.
Cite this paper: Hou, F. and Ai, K. (2015) The Empirical Research of Relationship between Consumption and Income for Chinese Urban Residents. Open Journal of Applied Sciences, 5, 251-258. doi: 10.4236/ojapps.2015.56026.

[1]   Li, Z.N. and Pan, W.Q. (2010) Econometrics. 3rd Edition, Higher Education Press, Beijing.

[2]   Yu, G. (2011) Research on the Parameter Estimation Problems of Panel Data Models. Ph.D. Thesis, Northeast Normal University, Changchun.

[3]   Campbell, J.Y. and Mankiw, N.G. (1991) The Response of Consumption to Income: A Cross-Country Investigation. European Economic Review, 35, 723-767.

[4]   Islam, M.N. (1995) Growth Empirics: A Panel Data Approach. Quarterly Journal of Economics, 110, 1127-1170.

[5]   Hsiao, C. (2003) Analysis of Panel Data. 2nd Edition, Peking University Press, Beijing.

[6]   Baltagi, B.H. (2005) Econometric Analysis of Panel Data. 3rd Edition, John Wiley & Sons Inc., New York.

[7]   Chen, H.Y. (2006) Analysis and Application of Panel Data. M.S. Thesis, Tianjin University, Tianjin.

[8]   Chen, H.Y. (2010) Research on the Testing Methods in Panel Data Models. Ph.D. Thesis, Tianjin University, Tianjin.

[9]   Bai, Z.L. (2010) Setting, Statistical Test and New Progress of Panel Data Model. Statistics and Information Forum, 25, 3-12.

[10]   Zhu, W. and Li, Y.S. (2006) Panel Data Analysis of China Urban Residents’ Consumption Structure. Application of Statistics and Management, 25, 645-648.

[11]   Chen, H.Y., Yang, B.C. and Li, S.C. (2009) Analysis of Panel Data of Consumption Structure of Urban Residents in China .Statistics and Decision, 24, 112-114.

[12]   Wang, L. (2012) Application of Panel Data Analysis Method in the Relationship between Income and Consumption of Our Country. M.S. Thesis, Lanzhou Jiaotong University, Lanzhou.

[13]   Zhu, J.P. and Chen, M.K. (2007) The Cluster Analysis of Panel Data and Its Application. Statistical Research, 24, 11- 14.

[14]   Long, Y. and Zhang, S.Y. (2010) Theory and Application Research of Dynamic Panel Data Model. Science-Technol- ogy and Management, 12, 30-34.