IDEAS home Printed from https://ideas.repec.org/a/ine/journl/v1y2011i41p124-130.html
   My bibliography  Save this article

Per capita consumption function for China - An empirical exercise -

Author

Listed:
  • Wang YANG

    (Osmania University,Dept. of Economics,India)

Abstract

An attempt is made in the present exercise to examine the empirical validity of the Keynesian consumption function for the Chinese economy for the period from 1978 to 2009 by fitting both linear and log linear per capita consumption functions underlying the assumption that there is one way causation between per capita consumption expenditure and per capita disposable income. The empirical results show that the Per capita Marginal propensity to consume is less than unity showing the pretence of marginal propensity to save. Further the results show that the Per capita elasticity of consumption expenditure with respect per capita disposable income is found to be unity both in linear and log linear per capita consumption functions in China.

Suggested Citation

  • Wang YANG, 2011. "Per capita consumption function for China - An empirical exercise -," Romanian Journal of Economics, Institute of National Economy, vol. 32(1(41)), pages 124-130, June.
    • Handle: RePEc:ine:journl:v:1:y:2011:i:41:p:124-130
    as

    Download full text from publisher

    File URL: http://www.revecon.ro/articles/2011-1/2011-1-7.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    consumption function; incomes; Keynes;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:1:y:2011:i:41:p:124-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentina Vasile (email available below). General contact details of provider: https://edirc.repec.org/data/inacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.