The Empirical Analysis of the Impacts of Income Distribution Gap on Consumption Demand

摘要

This paper proofs the economic model that income distribution gap affects consumption demand from a theoretical view, and draws the conclusion that there is a invcrscd relationship between income distribution gap and consumption demand, that is. the widening gap of income distribution will reduce consumption demand. Then, it calculates the impacts of current income distribution gap in China on consumption demand, finds that the existing widening income distribution gap in China has a negative impact on consumption demand, but it is not the key factor causes insufficient consumption demand because of the low level of per capital income. At last, it points out that policies should aim at improving the income level of entire residents and adjusting income distribution structure simultaneously.