Research Into The Impact Of Fujian Rural Households Income On Consumption

From 1978, Fujian province residents' consumption increases as their income ascends. Residents' consumption enlargement becomes chief power to impulse economic increase. Especially after 1990s' ,thc effect of residents' consumption demand became more and more important for economic development. However, Final consumption rate decreascs,private propensity to consumption declines, it means savings rate climb up. This situation will bring on bridle to economic increase. As known, Rural households account for over 50 percent of residents in Fujian province. So, Consumption of Fujian Rural households is worth notice, However, the paper studying on consumption of Fujian Rural households is very little. So, To choose Fujian rural households as the object of study would be a beneficial try.The paper consist of three parts They arc Introduction, Fujian Rural households consumption under the influence of income, Conclusion.Part 1, the author analyzes the research fruits of predecessors at home and broad. The second ,the author explains why she choose this topic. Based on the above mentioned facts, the author draws the fundamental trails of thoughts and main contents .Part 2 is composed of five parts, they arc Fujian Rural households consumption under the influence of current income, Fujian Rural households consumption under the influence of past income , Fujian Rural households consumption under the influence of permanent income, consume highly sensitive and wealth effect. This studying draws a few conclusion:1.Fujian Rural households consumption obviously is constrained by budget.2.Current income fluctuation and the stability of permanent income arc emphasized by Fujian Rural households, they chase a balance of current utility and permanent utility.3.The bridle of psychological expectation is more important than consume customs for Fujian Rural households.4.Fujian Rural households is highly sensitive to income fluctuation.5.The increase of wealth would relax the bridle of income ,But the gap of wealth go against country consume increase .Part 3, this part is conclusion according to previous analysis and put forward policy suggestion.