| Enlarging the home demand is the basic standpoint in the immediate economic development, while in order to enlarge the home demand and to maintain the sustaining development of economy, the largest market potential is in the countryside, where 70 percent of the population live, so their consumption behavior and character play a decisive role in promoting the social effective demand. Therefore, undoubtedly, it is of great significance to analyze the profound reasons for the present consumption characters and insufficient consumption of rural residents and to probe into the adoptable countermeasures so as to enlarge the home demand and promote economic development.In the positive analysis, the paper, firstly using the 1978 and 2001 data in (time order) and analyzing the total consumption and its structural characters of rural residents in Liaoning province, including the basic tendency and structural change of rural their consumption, came to the conclusion that since the reform and opening up, the total consumption level of rural residents has been promoted and their consumption structure has been improved in Liaoning; Secondly, using 2001 sectional data, econometrically analyzed the peasants' consumption structure by employing the by which in the analysis the author makes the assumptions as follows: all the consumers have the identical marginal budget share or the identical marginal propensity to consume when consuming certain goods. However, virtually, many studies overseas have indicated that the low-income class and the high-income class may have different response to the variation of price and the change of income (john L Park, 1998). Therefore, the paper expanded ELES, namely, turned the above assumption into the following: all the consumers in the same income level have the identical marginal budgetshare or the identical marginal propensity to consume when consuming certain goods, but consumers in different income level have not And the paper , by defining and introducing the nominal variable of income level-a variable of the marginal propensity to consume only resulting from the change of consumers' (rural residents) income level, with which the standard income level was compared, adopted to expand again the extended ELES model, exploited the surveying household data in 2001 by Liaoning Statistics Bureau, caculated (1) the marginal propensity to consume, real expenditure structure, real propensity to consume and marginal budget share of main consumer goods of rural residents in different income levels; (2) the proportion of the basic demand quantity, the basic demand structure, the basic demand of main consumer goods in real expenditure of livelihood consumption; (3) the income elasticity of demand, the expenditure elasticity of consumption, the price elasticity of demand and the cross price elasticity of demand of main consumer goods; finally, came the following conclusions: 1. the expenditure of the basic demand of different types of consumer goods is diverse; most of the rural residents' consumption in Liaoning focuses on necessities, whereas little on enjoyable and developing consumption; 2. the marginal propensity to consume of rural residents in different income levels is identical only when consuming certain goods, while different when consuming another goods, and the changes are completely various, as a result, proving the above assumptions; 3. the investing tendency of newly-added purchasing power and its relative importance in the newly-added purchasing consumption are rather different; 4. with the increase of income of rural residents, more income will be invested in productive consumption and savings and so on; 5. with the increase of income , the demand for different consumer goods will increase. Consequently, the increasing income of rural residents is the key and the foundation to enlarge the rural market and promote the rural purchasing power.But the income increase of rural residents has different effects on a variety of consumer goods. Hence, the income increase w... |
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