The Research On Chinese Town Different Income Levels Residents' Consuming Actions And Sructures

After the year 1992,with the introducing of marketing ecomomy in the area of income distribution, there have been increasing gap in the income of town residents. Moreover differences also appear in the consumption activities and consumption structures of different income levels . Learning the consumption activities and structures of different income levels in the town is quite meaningful to grasp the leveled consumption activities and to direct the consumption and production . According to our country's practice, the paper, based primarily on Keynesian absolute-income hypothesis and life-circle-permanent-income hypothesis of Modigliani and Friedman, begins with analyzing the outside circumstance and inside factors faced by each income level resident and chooses suitable consumption theory to analyze their consumption actions in quantity and then to use relevant data to analyze them in quality . The analysis shows that there are many differences among different income levels. According to their consuming characteristics, the consumptionactions can be divided into three kinds .The first are those residents with the lowest or lower incomes whose consumption actions come quite close to the Keynesian model. The second are those residents with middle or even better middle and high incomes whose consumption actions only come close to the Keynesian model and at meantime are affected more obviously by uncertain factors. The third are those residents with the highest incomes whose consumption actions come close to the Friedman's permanent-income consumption theory .In the consumption structure ,the paper use Lanch's expand-linear-expenditure-system model to operate quantitative analysis individually for the residents' consumption structure divided into seven incomes groups. The result shows that for the different income groups ,there exist differences of consuming productions in the part of marginal propensity to consume ,incomes elasticity ,base consumption expenditure and its rate changing tendency. So different policies should carried for different income levels in town in order to draw the demand of the whole consumption.