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Income and cultural consumption in China: A theoretical analysis and a regional empirical evidence

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  • Yang, Chengyu
  • Wang, Xupeng

Abstract

China's cultural consumption has experienced accelerating growth in the recent decade despite the slowdown of economic growth. This paper analyses the relationship between household income and cultural consumption using a representative agent model. By decomposing consumption into cultural and non-cultural components, we consider an additive utility function that displays a threshold of income above which cultural consumption arises. We also run numerical simulations on the extended model to estimate price and income elasticities of demand for cultural goods and services, and to evaluate the effects of cultural consumption promotion policies through various income and price subsidies which are currently practiced in China.

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  • Yang, Chengyu & Wang, Xupeng, 2023. "Income and cultural consumption in China: A theoretical analysis and a regional empirical evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 102-123.
    • Handle: RePEc:eee:jeborg:v:216:y:2023:i:c:p:102-123
    DOI: 10.1016/j.jebo.2023.10.007
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    2. Jiayao Li & Rong Zhang & Yuntao Zou, 2024. "Analyzing the Shift in China’s Cultural Industries: From Economic Growth to Social Enrichment," Sustainability, MDPI, vol. 16(10), pages 1-21, May.
    3. Xiaohui Sun & Zhijian Cai & Chongyu Wang & Jing Wang, 2024. "The Impact of Digital Inclusive Finance on Residents’ Cultural Consumption in China: An Urban-Rural Difference Perspective," Sustainability, MDPI, vol. 16(24), pages 1-18, December.

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