Empirical Analysis On Shandong Urban Residents' Consumption

Consumption is an important part of the national economy, as one of the main driving force ,it has long been promoting the sustained and rapid development of China's economy.But in recent years, our country resident's consumption level is rising slowly, lack of consumer demand has become a constraint of the benign and healthy development of China's economy. This article chooses urban consumption situation of Shandong province as the research object, tries to explore influence in number of Shandong urban consumption factors for expanding Shandong town residents' consumption demand, improve consumption structure and also hope to be a reference for other provinces and cities to raise the level of consumer.In order to research the current consumption of the problems ,this paper empirically analyze the urban households' consumption situation of Shandong province based on historical data, drawing on both domestic and foreign consumption study theory. First of all ,we specifically analyze the consumption status of urban residents in Shandong Province,the current main problems are: low level of consumption, consumption structure needs further optimization and upgrading. Then, we build model for empirical analysis using consumption function theory, combined with the Shandong urban consumption behavior characteristics. we get the conclusion: short-term income, consumption habits, permanent income, property status, and several other factors, have a great influence on the residents' consumption behavior. Meanwhile, with the extended linear expenditure system model (ELES), we analyze the consumption structure, of Shandong province, and through the propensity to consume, consumption elasticity analysis, we can see that education, culture and entertainment, transport and communications, health care and other types of consumer are great potential for spending growth. Consumption structure are gradually moving from survival to developmental and enjoyable consumptionFinally, we propose policy recommendations for improving the status of household consumption in Shandong on the basis of the empirical analysis. There are improving income distribution, strengthening social security system, promoting the optimization and upgrading consumption structure, stabilizing prices promoting rational consumer attitudes and so on.