Liquidity Constraints And Consumption Of Chinese Urban And Rural Residents

To establish long-term mechanism to expand consumer demand, we must consider liquidity constraints to the impact of our consumption. Dual-economic characteristics of urban and rural residents in our country's income level and consumption structure has a large gap between urban and rural residents which led to varying degrees of liquidity constraints. Liquidity constraints on consumption of urban and rural residents a definite effect, liquidity constraints lead to consumption behavior of urban and rural residents have a "myopia"feature; more rural residents to reduce the marginal propensity to consume; suppressed people, especially rural residents ahead of consumer behavior . Liquidity constraint theory and the theory can explain the consumption of precautionary savings "over sensitive ", the impact of changes in both the existence of cross-consumption, liquidity constraints can be divided into the current liquidity constraints and liquidity constraints expected from a long Look, the expected liquidity constraints can be seen as a kind of uncertainty. The empirical analysis found that residents suffered the degree of liquidity constraints negatively correlated with income levels, lower income, being the stronger the current liquidity constraints; regardless of income level, by the liquidity constraints of rural residents than urban residents intensity; Finance Improve the market will help alleviate the liquidity of our residents have been bound; the development of consumer credit industry, easing liquidity constraints for the obvious, especially in rural areas.