Positive Analysis On Guangxi Urban Inhabitants' Consumption Function

The subject of this paper is consumption function of Guangxi urban inhabitants, that is , the relationship between the urban inhabitants?household income and its consumption This paper revises several principal hypotheses and models of consumption function and puts forward hypotheses and models of Guangxi urban inhabitants consumption function according to the social and economic institution and really available data in Guangxi province. Considering consumer behavior to be a point of departure for studying consumption function, this paper, first of all , analysis the consumers behaviors and proposes a frame of studying Guangxi urban inhabitants? consumption behavior in a neo-classical paradigm, and compares differences in the supposal of urban consumer behavior among consumption function hypotheses within the frame Then the paper analyses external environments faced by Guangxi urban inhabitants and the factors that have effect on consumer behavior From this analysis , this paper sums up external environment supposal of Guangxi urban inhabitants consumption behavior and internal supposal on the part of the consumer according to Guangxi situations and compares them with those in the neo-classical paradigm and main theories of consumption function Finally , this paper advances hypotheses on urban inhabitants?consumption behavior in Guangxi The main conclusion of this paper is that the behavior of Guangxi urban inhabitants?consumption since 1980's has changed with the change in external environment The consumer is being transformed into the neo- classical type from the primitive type in Keynes's description. Their forward-looking behavior has been formed At the same time , imitative and competitive behavior among consumers becomes stronger. This paper identifies Guangxi urban inhabitants?consumption behavior as imitative and competitive , transitionally forward-looking. Based on the research into consumer behavior, this paper comes up with hypotheses and models of consumption function of Guangxi urban inhabitants. The following main hypotheses were considered (1) those consumption functions with the neo-classical paradigm , which include mainly Friedman pennanent income hypothesis, Modigliani life cycle hypothesis and Dusenbeeiy relative income hypothesis , can explain the circumstances in Guangxi since 1980 . (2) the general model of Guangxi urban household consumption is (C is consumption , y is income , A is residual assert, u is subsidy given by the government.) According to the hypotheses and the model analysis, this paper draws some important conclusions using a lot of temporally serial and cross-sector data on income , consumption, savings , and asserts and so on. Major ones among them are that: (1) hypotheses of consumption function within the neo-classical paradigm are applicable to Guangxi urban inhabitants conditions during the past twenty years. (2) a marked decline of average propensity to consumption of Guangxi urban households was registered and the average propensity to savings increased obviously in the past two decades , along with the downward tendency in marginal propensity to consumption and income elasticity of consumption .?This indicates that : a) the relationship between current consumption and current income is becoming weak , and b) residual savings ou...