Chinese Urban Residents' Income Structure, Stability And Consumer Study

Since the reform and openning-up,China economy has been growing at top speed, people per capita income level raise by a large margin overall, and people's lives quality can bring the well-to-do level up to while being food and clothing still. The increasing degree of consumption expenditure of residents had obviously dropped since 1990s in China. The average propensity to consume of residents, namely the proportion of taking gross domestic product of total consumption of residents keeps reducing in China. In order to stimulate consumption, the Chinese government implements many kinds of countermeasures of expanding domestic demand, but national consumption is still difficult by standing up vigorously slowly. So studying about the relation of our country urban residents income and consumption have important theory meaning and realistic subject of meaning as the urban residents are the main force of the consumption in China. It separates the income of urban residents into two parts:stable income and unstable income, and taking the uncertainty into consideration, it discusses the effects about the income structure to consumption demands from theoretical and empirical research. At last, it put forward the path and policy choices to promoting consuming.It draws a lesson for thought which Frideman divided the income into two parts and separates the income of urban residents into stable income and unstable income according to the original and the character of the income, to analyse systematic the different income, which has the different character in variety time period, make the effects to the consumption.Before 1978, the urban residents had the singleness and low income under the planned economy system and highly centralized distribution system. So, urban residents took the current income as the current consumption, the consumer behavior of the urban residents conformed to Keynes's absolute income theory.In 1980's, with the beginning of the reform and openning up, the increasing speed of urban residents income overtook the rate of economic growth. The income of urban residents, which has the low lever for the long time, was high growth and the status of the old singleness original changed. Urban residents viewed all income as the stable income, which caused optimistic expectation of income and comparisons of consumer. So the consumer behavior of the urban residents conformed to Duesenberry's relative income theory.With the reforming of the income distribution system, standardizing the capital market and deepening market reform, it is becoming diversification to the sources of urban income, which lead to the unstable factors of the income became more and the proportion of unstable income to total income is increasing trend after 1992. To use the data of