Different Income Levels Of Linfen Urban Residents Consumption Structure Empirical Analysis

China’s economy is developing at a high speed owing to the policy ofreform and opening-up.The development of China’s economic growthbegan to slow,which was affected by the global economic crisis,in2008.The long-term problem of structural imbalance on economicdevelopment has gradually emerged,and the consuming inadequacy ofresidents has become more and more severer.For a long time,The mostof China’s economic growth is depended on investment,which hasresulted a series of issues,such as underconsumption particularlyconsumer spending,the inharmony of domestic demand and externaldemand,the economic development gap between regions and soon.Furthermore,with the development of the economy,there are manystructural problems has happen,like gap between rich and poor,socialcontradictions,in China.If we don’t change the way of economydevelopment and adjust economic structures quickly,China’s economic development will be unsustainable.In recent years,China’s consumptiongrowth rate,which is lower than investment growth rate,is low for a longtime and on the decline.It is not conducive to the virtuous circle andsustainable development of economy. Therefore,we should regardexpanding consumer spending,increasing residents’consumption ability,optimizing the consumption structure,developing new consumption hotspots as a persistent effect mechanism of boosting domestic demand.Based on the urban residents of Linfen as the research object, putingthe theory of consumer income as a support and using the consumptionstructure as the breakthrough point in this paper.Then,this paperapplies the extended linear expenditure system(ELES) model to analysischanges of different income levels of urban residents consumptionstructure in Linfen during the period of2008to2014.Paper puts forwardsome policy suggestions about adjusting and optimizing Linfenresidents’consumption structure on the basis of empirical study andnormative analysis.