Shaanxi Province, Rural Residents' Consumption Structure Study

Under the condition of market economy, consumption problem had become one of big impetus to promote economic growth. Consumption structure plays an important role in the consumption problem. On one side, it helps to promote the comprehensive level of human life. On the other side, it contributes to the coordination of industry structure.This paper firstly shows that the consumption structure optimizes step by step with the promoting life level of presents in Shanxi province. Secondly, the author uses cross-section data on income and expenditures of rural household of Shanxi in 2004 for forth analysis. It shows the characteristics of expenditure which used to satisfy people's basic needs and marginal consumption tendency of Food, Clothing, Housing and other expenditure items. The author obtains price and income elasticity of demand to analysis the effects of fluctuation of price and income on expenditure of different items. All these analyses are done by extended linear expenditure system. Thirdly, considering the expenditure proportion of eight consumption items during the last 20 years, the author thinks that Shanxi peasants' consumption structure pattern has been "Xiaokang type" after 1999. Finally, the study sums up the characteristics of consumption structure of Shanxi peasants, and gets the following conclusions. The proportion of food expenditure is rational. The expenditure on Housing is a little too high, comparatively; the expenditure on Household Appliances and Services is a little too low. This disproportion is a disadvantage to peasants' life level. Transport and Telecommunications is a consumption heat point. Demand of the item is sensitive to price and income. Peasants pay great attention on Education Service expenditure.This paper focus on consumption structure of a certain province, and the conclusion is credible based on data analyses.