The Research On The Consumption Habit Formation Of Urban And Rural Residents In China

Consumption,investment and exports are known as the “troika” that drives economic growth.Final consumption is the most important and stable driving force for China's economic growth.With the continuous improvement of the living standards of urban and rural residents in China in recent years,the per capita disposable income has also increased,but the final consumption rate of Chinese residents has gradually decreased.This paper aims to explain the phenomenon of insufficient consumption of Chinese residents from the perspective of consumption habit formation.This paper constructs a model for the consumption habit formation of urban and rural residents in China,including social security and employment expenditures,medical and health expenditures,and education expenditures.Compared with the previous research on the formation of consumption habits,the model contains more extensive factors.The main research purposes of this paper are divided into two aspects.On the one hand,it is determined through empirical research whether the consumption utility function of urban and rural residents in China can be divided in time.On the other hand,it is hoped that the consumption intention of urban and rural residents will be insufficient in the perspective of consumption habit formation.The conclusions of this paper are:The total consumption of urban and rural residents in China shows the endurance effect,indicating that China's urban and rural residents have achieved the greatest consumption utility through mutual replacement of high current consumption and low future consumption.However,due to the restriction of income level,in order to achieve early high consumption,it can only be realized through savings.To a certain extent,it can explain the phenomenon of low consumption and high savings among Chinese residents.Social security and employment expenditure in fiscal expenditure have no significant impact on the total consumption of urban and rural residents.Medical expenditure has no significant impact on the total consumption of urban residents,but there is a significant squeeze effect on the total consumption of rural residents.Education expenditure has no significant impact on the total consumption of urban residents,but there is a significant crowding out effect on the total consumption of rural residents.The actual interest rate has a significant crowding out effect on the total consumption of urban residents,and there is a significant crowding effect on the total consumption of rural residents.From the past empirical results,it can be found that there is a significant duality in the consumption of urban and rural residents.Therefore,when formulating policies to stimulate household consumption,we should take into account the different characteristics of urban and rural residents' consumption and formulate reasonable policies in a targeted manner.There is no significant habit formation effect or endurance effect of food consumption of urban residents in China,and there is a significant habit formation effect of food consumption of rural residents in China.This phenomenon indicates that rural residents in China have replaced each other in food consumption through low consumption in the current period and high consumption in the future,achieving the greatest consumption utility.On the other hand,it shows that rural residents in China are pursuing higher and higher consumption levels in food consumption.The three fiscal expenditures have no significant impact on food consumption of urban residents.Health care expenditure has a significant squeeze effect on food consumption of rural residents.Food consumption of urban and rural residents has been significantly squeezed by real interest rates.