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The Effects of the Internet and Mobile Services on Urban Household Expenditures

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Listed:
  • Zhang, Aihua
  • Lv, Jia
  • Kong, Ying

Abstract

In recent years, the economy of China has entered a new normal state and the economic growth rate has decelerated. The telecommunications industry as a national strategic and basic industry, is also facing up with some dilemma. Information consumption is a comprehensive concept including e-commerce, communications, broadband services, online games and so on. On this basis, this paper employs the almost ideal demand system(AIDS) to explore the impact that information consumption has made to residential consumption expenditure and the change of the consumption structure. Ac-cording to empirical analysis, finally we can draw the following conclusions: The income elasticity of information consumption is greater than 1, which means the income demand is flexible. And the self-price elasticity of information consumption is negative and the absolute value is between 0 and 1. It means that the price of information consumption is not flexible.

Suggested Citation

  • Zhang, Aihua & Lv, Jia & Kong, Ying, 2017. "The Effects of the Internet and Mobile Services on Urban Household Expenditures," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168554, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsp17:168554
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    References listed on IDEAS

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    More about this item

    Keywords

    Information consumption; Household consumption expenditure; The almost ideal demand system(AIDS); Demand elasticity Information consumption;
    All these keywords.

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