Secondly, using 2001 sectional data, econometrically analyzed the peasants' consumption structure by employing the by which in the analysis the author makes the assumptions as follows: all the consumers have the identical marginal budget share or the identical marginal propensity to consume when consuming certain goods.
By using ELES model by LUCH, from the positive analysis of Chinese urban households' consumption patterns in 1998,such conclusions can be drawn: The index of marginal propensity to consume in urban households is 0.6166, among which that of marginal propensity to food consume is as high as 0.1592;
Through the indexes such as Engel'coefficient, marginal consumption tendency, demand-income elasticity, demand-price elasticity and so on, we can further marke clear the inherent pattern of urban residents' consumption and its influence on the development of our national economy, and thus provide effective policy and advice to further start the domestic consuming market, adjust the production structure and keep our national economy developing in a healthy and harmonious way.
METHODS:Expand linear expenditure system(ELES)model was used to analyze sectional data of different kinds of consumption expenditure and the disposable income of urban residents in2003and to calculate the value of marginal consumption tendency,the elasticity value of demand income and the demand price.
Using Model of Extend Linear Expenditure System and the software of Statistical Program for Social Science(SPSS),analyzes expending structure of urban households in Zhejiang province,such as the analysis of marginal consumption tendency, demand-income elasticity, the base life_line and so on.
The traditional calculation approach and results of taxation multiplier and transfer payment multiplier are liable to mistakes as they confuse the marginal consumption propensity of disposable income with that of real income.
In the course of economic transition, there does not exist a correlationship between the levels of income and consumption for Shanxi farmers. In fact, higher income always goes with a lower consumption propensity with a very striking difference between the low-income group and the high-income group in their marginal consumption propensity.
Using a simple theoretical model, we demonstrate that the PIH implies the marginal propensity to consume (MPC) out of zero frequency income is unity.
For example, precautionary savings and the diminishing marginal propensity to consume.
This paper shows that even untied aid is Pareto-improving if and only if the marginal propensity to consume the polluting good in the donor country is sufficiently larger than in the recipient country.
The marginal propensity to consume social security wealth is statistically significant in the applied specifications.
The marginal propensity to consume out of financial wealth is in a range of 3-5%, thereby confirming recent time series results.