Nature Of Farmers' Income-based Consumption Risk Study

Since reform and opening up,the main contradiction of China shifted from a shortage of consumer goods supply to be inadequate for the demand.Consumption has become the most important aspects of economic area.Chinese farmers who occupy the majority of the population have been in the low status for a long-term which not only hinder the development of the rural economy,but also make the pulling effect to economic development of consumption obviously inadequate.At the transition period of China,The importance of domestic demand is growing. Improving the consumption rate of farmers is very important to the economic development of china.Income is the most important factor which impact consumer demand for a long period,Scholars have made a lot of theories and empirical researches from different impacts.This article Select analyze from the risk of the consumption of farmers.The key reason for low consumption rate of the farmers is the existing of high consumption risk.This is the starting point of this article.The paper introduces the nature of income property to analyze of the formation of the principle of consumer risk and spreading the risk of consumer to explore ways on this basis.First,the paper reviews the domestic and foreign researches on income and consumption which recalls the classical theories of consumption.Summarized the Research results about income and consumption of Chinese scholars,then, summarized the research of consumption risk.Chapter Three of the paper elaborates the nature of the income of farmers in China by system.That pointed out that income does not only have the attribute of number but also have the nature of property which contains high uncertainty,low growth,low security,high liquidity constraint,low Permanent and low Controllability.Chapter four of the paper gives the broad meaning of the risk of consumption first,and then gives narrow meaning of the risk of Consumption by the way that effecting on consumption.After this,the paper analyzes the impact of the consumption risk made to Chinese farmers.Chapter Five expounds the principle of the role of the formation and enlarge of the consumption risk.After that,the paper points out the principle of relevance and role of intrinsic between the nature of income and the consumption risk.Chapter six summarized the main conclusions which is the low consumption rate of farmers was mainly due to the enormous consumption risks and this high consumption risk is resulting from the nature of the income of the farmers.At last,the paper Gives advice of improving the nature of farmer's incomes to dispersion and lower the consumption risk which can increase the rate their consumption.