The Population Age Structure Of The Consumer

First, this paper systematically reviewed consumption function theory of the Western scholars since Keynesian. After that, we compare the differences between them, and make brief comments about these consumption function theories. Then we demonstrate the conclusion of internal scholars, which have considered and combined unique factors of China in the consumption function theory. Finally we demonstrate the research and progress's details of the current domestic and foreign scholars in the population age variables affecting household consumption results. In this paper, based on the research results of the consumption functions of domestic and foreign scholars, we combined our own analysis with these conclusions, summarized assumes about the Chinese people's consumer behavior in this paper, and on this basis, we constructed a Chinese people's consumption function model which contains the population variable age structure. In this paper, the population structure is divided into four age groups, and we include the share of all ages the proportion of the total population into the model as independent variables, which helps us to test the population age structure's impact to changes in household consumption.In this paper, we use China's macro-year 1989-2007 time series data to test the consumer behavior assumptions and Chinese people's consumption function model presents in the former paper. First, we examined consumption function model which doesn't contain the age structure of population variables and we conduct a brief analysis. Then, we examine the consumption function model that includes the population age structure variables which is the population of all ages the proportion of the total population share. Finally, we briefly compared these five results.The empirical results in this paper show that the population age structure variables in the model adopted by the consumption function pass the test of significance, which indicates that changes in population age structure is an important factor to the changes in household consumption in China. Furthermore, our empirical research shows that the population of all ages for the consumer will have different impacts to the consumption, and the econometrics result is in concordance with our analysis and forecast. When a country or a region is a young or old population age structure, the share of its population rate to the total population would have an adverse effect to the consumption. On the contrary, when a country or a region is a adult population age structure, the share of its population rate to the total population have a optimistic effect to the consumption. In the consumption function model, the successful integration of the population age variable help us to predict the effect of household consumption more accurately based on the population age structure. And this can guide national relevant departments to induce the consumption better and plays a certain effect on economic development...