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The Effect of Propensity to Investment on Primary Income Distribution Structure |
LIU Kan1,FAN Decheng1 |
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Abstract Primary income distribution structure refers to the ratio adjustment of incomes between the various projects, which is an important part of national economic system. Based on the input-output theory, the effect of propensity to investment on primary income distribution structure can be analyzed. According to the study, the propensity to investment influence the primary income distribution structure, closely related to the various industries and project coefficient, the production of direct consumption coefficient, and the total domestic revenues. Within the existing structure of factor prices and investment structure, the propensity to investment would reduce the proportion of labor compensation and net taxes in national income, but raise the proportion of depreciation of fixed assets and improve the operating earnings.
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Received: 28 January 2014
Published: 15 May 2014
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Corresponding Authors:
LIU Kan
E-mail: lkziliao2008@163.com
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