An Analysis of the Consumptive Differences between the Chinese Urban and Rural Residents

With China's 1978-2009 data, the use of linear regression model and variable lag model, the study on consumption of urban and rural residents showed: the basic consumption expenditure in rural areas is much lower than that in urban areas; the coefficient of urban and rural residents' per capita disposable income has a marginal consuming propensity; the vast majority of rural residents' income were used for consumption; whether it is a long-term or short-term income growth, the stimulation of consumer demand for rural residents are more obvious, but and there is a swelling effect in consumption of urban residents.