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A study on altruistic consumption of Chinese residents from the perspective of intergenerational income mobility

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  • Yingying Shao

Abstract

Resident consumption is an important link to smooth the domestic circulation and promote the economy to achieve high-quality development. To stimulate the vitality of residents’ consumption and achieve the expansion and quality of consumption, we should not only focus on the scale and willingness of residents to consume, but also consider the motivation of consumption. The paper analyzes the impact of intergenerational income mobility on residents’ marginal propensity to consume and consumption altruism motive by expanding the Over Lapping Generation Models and combining the China Family Panel Studies (CFPS) data. The results of the study show: Intergenerational Income Elasticity has a significant positive effect on residents’ marginal propensity to consume. When Intergenerational Income Elasticity increases, the "altruistic motive" of residents’ consumption will also increase significantly. Compared with rural residents, Intergenerational Income Elasticity has a stronger positive effect on urban residents’ marginal propensity to consume and marginal propensity to consume education. With the effect of intergenerational factors, urban residents’ consumption shows stronger altruistic motives.

Suggested Citation

  • Yingying Shao, 2024. "A study on altruistic consumption of Chinese residents from the perspective of intergenerational income mobility," PLOS ONE, Public Library of Science, vol. 19(1), pages 1-17, January.
    • Handle: RePEc:plo:pone00:0297444
    DOI: 10.1371/journal.pone.0297444
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    References listed on IDEAS

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    1. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
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