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A Research on the Relationship between Urban Households’ Income and Expenditure in Hainan
School of Mathematics and Statistics, Hainan Normal University, Haikou, China
Department of Mathematics, Honghe University, Mengzi, China
- 1 School of Mathematics and Statistics, Hainan Normal University, Haikou, China
- 2 Department of Mathematics, Honghe University, Mengzi, China
Technology and Investment·Volume 04 (2013)·Pages 12–17·Published 16 January 2013·DOI10.4236/ti.2013.41B003
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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.
KeywordsPanel Data ModelIncomeConsumptionUrban Resident
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