The Connection of Uncertainty within the Transformation of Economic Institution in China and Propensity to Consume
|School||Southwest China Normal|
|Keywords||Economic System Changes Uncertainty Consumption theory Marginal propensity to consume Average propensity to consume|
In recent years , China 's marginal propensity to consume fluctuations , the average propensity to consume continues to decline , there is a big difference between this description and Cairns . China 's propensity to consume and the change of the economic system combined analysis shows there are close links between the two . China is the transition from the traditional centralized planned economy to a socialist market economic system . In the process of institutional change and institutional reconstruction , the bounded rationality of decision-makers so that the widening income gap , social security lag , education spending and residents buy the high expenditure , the consumer environment is full of variables , coupled with the reform will inevitably bring about the laid-off pressure dramatic increase in medical expenses and other factors , consumers enhance feelings of uncertainty about the future . Uncertainties in the economic system change brought about to a large extent influence the consumer decision-making , which led to China 's marginal propensity to consume and average propensity to consume variation . Based on this, we are committed to theoretical and empirical analysis of China's reform and opening up since the residents of the uncertainty in the economic and institutional change expected enhancement, and thus had an important impact on the consumer tendency , indicating that in the transition of the Chinese consumer theory , uncertainty factors should occupy a more important position . Also shows that the current system of structural change is inevitable under realistic conditions , in order to promote consumer and avoid the volatility of the propensity to consume to maintain macroeconomic policies rational and relatively stable two - phase balance under the second best option .