An Empirical Study Of China's Urban And Rural Residents' Consumption Level Structure Based On AIDS Model

This paper is based on macro-and micro economics, consumer economics, consumer behavior theory, and the results of others'study. Relying on the historical data, the rural and urban residents'consumption level and consumption structure characteristics are analyzed. Also the AIDS model (almost ideal demand system model) is used to study China's urban and rural residents'consumption behavior and consumption structure. This paper consists of five parts: Part one, introduced the research background, and the significance of the subject. The second part, for domestic and international literature review to illustrate the application of the theory. Part three describes China's urban and rural residents'consumption level and consumption structure, characteristics and process of change over the years and trends. The fourth section details the use of AIDS and related models to illustrate this paper, data sources and measurement methods to analyze empirical results. Fifth part, the study's main conclusions and future research directions.The main conclusions of this paper are: With economic development, China's urban and rural residents'living standards and consumption levels have risen significantly. We can found that urban residents have entered a stage of prosperity, while rural residents access to a well-off stage by Engel's Coefficient. The consumption level of urban and rural residents has greatly increased, but the gap between urban and rural residents is still high. The empirical results show that urban and rural residents have different consumer expenditure elasticity and price elasticity, and need one by one specific analysis. Therefore, in the formulation of relevant economic stimulus policies, we should consider these factors and make the most rational economic policies.