Consumption Composition Analysis Of Urban And Rural Residents Of Chongqing

Since open and reform of our country, the consumption levels of urban and rural residents have been improved dramatically. However, as a result of imbalance regional development, there exists a huge economic gap between eastern and western region. Chongqing locates in the western part of china, and as we know, agricultural and rural economy occupy decisively position in chongqing. Suffering a dual urban-rural structure in economic, the levels and structure of consumption are in great disparity from its urban areas to rural regions. As to this, empirical analysis consumption composition and elasticity of demand are very important, both in theoretical and practical sides.Based on economic consumption theories, the thesis tries to outline the consuming differences between urban and rural residents, as well as consuming behaviors in Chongqing. Besides, the author aim to probe into the causes which result in these economic phenomena, and make efforts to discover the traits , laws of evolvement of consumption levels and structure gap between urban and rural residents with the help of comparison and empirical research methods.Through analysis the average levels of income and consumption of the residents in urban and rural areas of Chongqing, The thesis analyses the consumption composition,marginal propensity of consume and slementary demand elasticity based on econometric models and extended linear expenditure system. In details, the author reviewed consumption function dassification and calculation of expenditure .In section 2,.In section 3, both income and consuming levels of urban and rural residents of Chongqing are compared and analyzed systematically with statistical analysis and econometric models.Finally, in section 4,the author analyzed the demand elasticity through extended linesr expenditure system. Results of the empirical analysis are :The basic consumption level of rural residents is lower than that of urban households. More precisely, it is investigated that the average fare of urban residents is 3934.14 yuan annually, however, the average fare of rural residents is 1521.171 yuan, which is lower than that of urban residents. And there exists difference between urban and rural residents on consumption stpucture marginal propensity of consume and elementary demand elasticity.The thesis also put forward some policy suggestions according to the findings.