A New Method for the Research on Regional Consumption Level Based on the Infinite Distribution Lag Model-Taking Urban Dwellers in Shandong Province as an Example
International Conference on Management Innovation and Public Policy (ICMIPP), 2012-01-07 to 2012-01-08.
Introduced the lag variables for income based on the Keynes consumption function which is expanded into the dynamic consumption function to interpret the marginal effects of present income and past savings on present consumption. Koyck transformation transfers infinite distribution lag model into first-order auto regression model that greatly saves the freedom degree and reduces the numbers of unestimated parameters. Finally making a research through taking urban dwellers in Shandong province as an example to reveal it's dynamic evolution which provided decision-makers with some proofs.
infinite distribution lag model; instrumental variables; generalized difference; Koyck transformation; consumption level; consumption structure