Calculation on China’s Functional Income Distribution and Redistribution
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| Title | Calculation on China’s Functional Income Distribution and Redistribution
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| Author | Lv Bingyang and Guo Qingwang |
| Organization | China Financial Policy Research Center，Renmin University of China |
| Email | lby@ruc.edu.cn；guoqw@ruc.edu.cn |
| Key Words | Flow of Funds Accounts; Functional Income First Distribution；Tax Sharing System |
| Abstract | The initial functional income distribution dominated by market reflects the principle of efficiency, and the functional income redistribution dominated by government reflects the principle of fairness. It is very important to scientific and accurate estimate China's functional income distribution for studying many macroeconomic issues. This paper presents particular method to estimate functional income distribution, and uses the latest estimates of “Flow of Funds Accounts” from 1978 to 2008 and the relevant data for empirical research. The results show that: Since 1983, China’s initial and final labor share shows long-term downward trend; From 1983 to tax sharing system reform in 1994, China’s initial and final capital share shows long-term upward trend, and remains stable after 1994; Government efforts to regulate factors’ share are strong in the 1980s, but rapidly decay before 2000, and government efforts have been strengthened in the 21st century which still not enough to change the labor share’s decline trend; Since 1997 to 2007, the provinces’ initial and final labor shares general show long-term downward trend, the initial capital shares generally rising, but the final capital shares’ changing trend among provinces not unify.
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| Serial Number | WP216 |
| Time | 2012-02-15 |
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