• 论文 •

农村居民消费增长比平稳更重要

• 出版日期:2013-06-15 发布日期:2013-06-05

Consumption Growth is More Important than Stability in Rural China

Zhang Bangke & Deng Shengliang

• Online:2013-06-15 Published:2013-06-05

Abstract: This article uses per capita annual consumption data from China’s rural households by income quintile for the numerical simulation after incorporating habit formation into the model of Lucas (1987). The findings show that a growing consumption is more important than a smoothing consumption, and this relative importance grows with a higher income level. There is an inverse U relationship between the ratio of two kinds of welfare costs and the sensitivity of habit formation when relative risk aversion coefficient is constant, while the ratio of two kinds of welfare costs declines with the increase of relative risk aversion coefficient when the sensitivity of habit formation is constant. Furthermore, compared to other income groups, promoting consumption can bring more economic welfare for high income group, but smoothing consumption can bring more welfare for low income group. Therefore, when making policies to promote the rural consumption, government should pay attention to the welfare cost of the low income group caused by consumption fluctiuations.