Research On Urban Residents' Consumption Function And Consumption Composition Of Sichuan Province

For a certain economic development level, it's important for increasing economic output to impulse economic in the school period.So,it's important to learn the consumption composition,variable tendency of consumption and how residents change when they face the new situation. Recently,growth speed of domestic demand is 8.6 %, and it's fall behind growth speed of GDP and investment.In 2005,center economic conference indicate that we must try our best to develop the domestic demand,if we reach the goal of economic growth. The GDP of a country is made up of consumption demand, investigation demand and the export demand. For the relatively high economic growth velocity of China, about how to promote the domestic consumption demand, especially the increase of marginal propensity to consume is a very critical task for the economists.This dissertation studies the consumption behavior of the urban residents of Sichuan province from two ways. One is the consumption function, and the other is the urban residents' consumption structure. The unstable consumption and the change of consumption structure are analyzed based on the positive probability analysis. Some efficient proposals are suggested.About the relationship of consumption and income, there are some main theories: Keynes' Absolute Income Hypothesis, Duesenberry's Relative Income Hypothesis, Friedman' Permanent Income Hypothesis and Modighani's Life-cycle Hypothesis. This paper performs the regression analysis on the basis of the Absolute Income Hypothesis, and then carries the tentative analysis after modeling the total consumption function. A bivariate linear regression equation is established through analyzing this year's consumption situation influenced by the income of residents, the last year's consumption and the price of commodities.The different demand of the human being is satisfied by producing and consuming the different resources and the services. The realization process of production and demand is about the same process of consumption. In the process of consumption, the consumption of different resources and the percent form the consumption structure. The resident's consumption structure can be studied from the total structure and the structure of family expenditure. This dissertation uses the cross-section data of Sichuan province to found ELES model to describe the relations between resident's consumption composition and income price, and so on.