The Consumption Trend Of Population Structure Change

The U.S. subprime mortgage crisis and the European debt crisis has passed eight years, but the global economic has still been in a terrible situation. Relying on external demand to pull China's economic is with little hope, while domestic demand downturn is still bothering Chinese economists and policy makers.To explore the causes of sluggish consumer demand from the perspective of the population has become a hot topic in the field of consumption theory in our country. The recent reform of the household system registration and two-child policy landing will definitively trigger a revolution in the population structure. What are the impacts of these changes on the consumption? How much will this change the consumption? These questions are to be answered. We attempt to explain the impact of population factors on the consumption of residents from the life cycle theory and precautionary savings theory.Based on the panel data from 1991 to 2014, this paper construct econometric model consisting of residents' consumption, population structure and relevant controlling variables. The results show that there is a nonlinear relationship between China's consumer demand and urbanization, such relationship also exists between consumer demand and the age structure. Urbanization and aging were unable to effectively break the inflection point in restricting the consumption because of the corresponding industrial development and social security. Meanwhile, there is a positive relationship between the youth dependency ratio and consumption, the two-child policy can enhance consumer demand in China.