Chinese Farmers' Income And Consumption Interaction

The income question of farmers which is the core of "three rural issues" is very important to the socialism new village construction. For a long time, economical educational world has already achieved a mutual recognition: consumption is the most powerful energy for economic growth. Then let's study the present situation of the farmer's income and consumption. What's the relationship between them? How does they interactive with each other? These are what we will specifically study in this paper.On the basic knowledge of income and consumption, we separately analyze the present situation of farmer's income and consumption in our country. Firstly, aider analyzing the average net income of the national farmer, we choose the best one of the several kinds of distribution functions which have been used often in the foreigners' paper to simulate the date. We also give a new method to decide the distribution function, and then use it to solve several realistic questions. Then by using principal component analysis,the ELES model and the AIDS model to analyze the farmer's consumption pattern of our country, we get a new conclusion which reflected the real situation of farmers' consumption pattern. Thirdly, by using the commonly used models to explore the relationship of income and consumption in data, we know that our national farmers' average net income and expense are still fit to the Absolute Income Hypothesis model. In this foundation, we use the co-integration theory and the ECM to explore the consumption and the income further between which long-term stable balanced relation exists.Finally, according to the above real diagnosis analysis, we discuss some problems of our national farmer's income and consumption from many angles and aspects which exist nowadays, and accordingly provide some simple suggestions.