Under-consumption, trade surplus, and income inequality in China

Chan, Kenneth S.; Dang, Vinh Q.T.; Li, Tingting; So, Jacky C.

doi:10.1016/j.iref.2016.02.013

Cited by 10 publications

(7 citation statements)

References 14 publications

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“…Therefor it is constant with Chu and Wen (2017) who empirically states that income inequality is the dynamic power for increasing savings rates and that households with a high income had savings at a higher level. Also, these results support the results of Gu and Tam (2013) who found that income inequality has a positive impact on savings and Chan et al (2016) who found in the short-run that rising income inequality has contributed to the rise in savings of the rich and reduce in poor consumption.…”

Section: Resultssupporting

confidence: 88%

“…This happened because most of the income of the poor is for consumption while the rich people save. According to Chan et al (2016), it has lately shown by panel VAR short-run that rising income inequality had contributed to rise in savings of the rich and reduce in consumption of the poor, pressuring politicians to authorize cheap loans for the poor from the rich. Chu and Wen (2017) conduct median regression analysis using community-level data and found that households with a high income had savings at a higher level, and also empirically states that income inequality is the dynamic power for increasing savings rates.…”

Section: Introductionmentioning

confidence: 99%

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Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Taresh

Sari

Purwono

2020

EDAJ

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Income inequality in Indonesia remains a controversial issue in the context of Indonesian macroeconomic condition that is evolving in output and government spending, and its increase in consumption accompanied by inflation and slowing of bank credit. The purpose of this study is to investigate the relationship among macroeconomics, monetary and income inequality through a broad theoretical model by adopting a panel Structural Vector Auto-regression (SVAR) model to get more sample size during the period 2005-2018 at 33 provinces in Indonesia. The main results indicate that the variables of output and inflation have positive relationships. The relationship between output and income inequality is also significantly correlated, and those results supported by Kuznets's theory reveal that the relationship between economic growth and income inequality is positive in the short term. The relationship between inflation and income inequality is positive as well in Indonesia. This result is by the fact that low-income families are considered more vulnerable to inflation. The impact of non-food consumption shocks increases income inequality, while Indonesian government spending and bank credit shocks reduce income inequality. Then the response of savings and bank credit to the shock of income inequality is positive.

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Section: Resultssupporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Taresh

Sari

Purwono

2020

EDAJ

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“…However, we find nearly no related studies that explore the above relationship from the role of income inequality. Income inequality can affect population health in the following ways: consumption capacity (38)(39)(40), psychological state (41)(42)(43), and social relations (44)(45)(46). Hence, income inequality may influence the effect of business cycles on health expenditure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Many related studies have verified that income inequality can adversely affect population health (38)(39)(40)(41)(42)(43)(44)(45)(46). Economic booms can benefit population health by guaranteeing the residents more material goods and medical goods.…”

Section: Research Hypothesesmentioning

confidence: 99%

The Effect of Business Cycles on Health Expenditure: A Story of Income Inequality in China

Zeng

Luo

2021

Front. Public Health

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Using the panel data of 31 regions in China from 2002 to 2018, this study aims to investigate the effect of business cycles on health expenditure from the role of income inequality. We find that health expenditure experiences a change from pro-cyclical to counter-cyclical with business cycles. Specifically, business cycles have a different influence on health expenditure before and after the financial crisis in 2008. Our findings also show that income inequality can moderate the impact of business cycles on health expenditure in China. More importantly, the role of income inequality in the above issue varies from different regions. We conclude that the government should try to take active steps to control health expenditure by decreasing income inequality.

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“…China is facing growing income inequality that is causing both social and political concerns, and income inequality is becoming one of the more frequently discussed topics in China (Chan, Dang, Li, & So, 2016;Lyhagen & Rickne, 2011;Wei, 2011). The official statistics from China report a continuous increase in the Gini coefficient up until 2008, although it has shown a declining trend in the years since (Li & Sicular, 2014).…”

Section: Introductionmentioning

confidence: 99%

Income inequality among minority farmers in China: Does social capital have a role?

Liu

Paudel

et al. 2018

Review Development Economics

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We used recently available household panel data collected by China's National Bureau of Statistics to examine the effects of natural, human, material, and social capital on income inequality among minority farmers in China's Xinjiang Province between 2011 and 2012. Results obtained from panel quantile regression and correlated random effects’ models show that income inequality and the poverty of ethnic farmers have been decreasing to some extent. Results also indicated that human capital exacerbates income inequality among the minorities, whereas the effect of natural capital on income inequality is not evident. Social and material capital reduce income inequality among ethnic minorities. Results from the decomposition of the Gini coefficient indicate that material and social capital contribute to a substantial majority of the income inequality in the region.

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Under-consumption, trade surplus, and income inequality in China

Cited by 10 publications

References 14 publications

Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

The Effect of Business Cycles on Health Expenditure: A Story of Income Inequality in China

Income inequality among minority farmers in China: Does social capital have a role?

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