The Empirical Research On The Consumption Difference Of China Urban And Rural Residents

The redisdents’s consumption is the public focus of the transformation of the economic development pattern.Wihle factly in the transition period,China has a remarkable urban-rural dual economic structure,due to the huge gap between urban and rural’s development level.The different circumstances between Chinese urban and rural area make an obvious consumption behavior difference.Hence,the research of China consumption need to consider the urban and rural comsumption respectively and make a comparison.It’s unreasonable to put urban and rural comsumption research under only one theory or hypothesis what maybe negelct the different consumption conditions between urban and rural area. According to the development course of comsumption theories,this paper determine to make a comprehensive analyse of urban and rural comsumption difference by several different hypothesis theories.The datas the paper used are panel datas of 31 provincial unit income and consumption informations in the period of 1992-2012.The paper make the cointegration test of variables relaitionship under different theories firstly and then make empirical researchs by panel model. Macroanalysis and structural analysis are combined in the research.Finally the paper get several conclusions,including uban residents have a strong income elasticity of consumption than rural residents,urban residents’consumption behavior incline to be affected by the absolute income,while the rural residents’ incline to be affected by the longterm income and consumption habit.Urban and rural residents both are Absolute Income Hypothesis consumer, while the fomer are sensitive to the expected income variety and the later are also affected heavily by expected permanent income. China uban and rural residents both have strong saving motivation and the former have more, different saving motivation degree in different region. Urban residents have a stronger marginal propensity to consume of non-fundamental incomes than rural residents while rural residents have a stronger MPC of fundamental incomes,such as wage income.The last chapter, according to the conclusions, the paper give policy suggestions.