The Empirical Analysis Of Urban Residents Consumption Of Henan Province

Consumption is an important factor affecting economic growth; you also use the main variable when you research economy. In Henan Province investment and exports have played a role in stimulating economic growth, but consumption did not play the proper role in driven economic growth. Weakness in the current consumption, improving the consumption level and consumption structure is very important to improve economy, which is not only to deal with the current economic crisis and to improve the situation of weak consumer needs, but also a good way to keep economic develop. Choose consumption of Urban Residents as the object of study, qualitative and quantitative analysis changes of the level and structure of consumption and the impact of income inequality on consumption, providing policy advice for improving the level of consumption and consumer structure of urban residents in Henan Province. I hope the research can play a reference role in the analysis of consumption level and structure in other provinces.First, using consumption data of urban residents the year of 1996-2008 in Henan descriptively analysis:APC and MPC tend to reduce as income levels increase. The APC of high-income households changes 0.2120 in maximum, the MPC of middle-income household change 0.8828 in maximum. From the change of eight categories of consumption expenditure:changes in the proportion consumption expenditure on transport and communications, entertainment, education and services and household equipment and services caused consumption structure to change, and in recent years, the proportion of consumption expenditure on housing, transport and communications are lower than the national average. Then, creating a static Panel Data model makes a study finding that:consumer expenditure models of average, food, clothing, education, cultural and services, transportation and communications and so on are the coefficient models, consumer expenditure models of health care, housing household appliances and services, miscellaneous goods and services are the variable intercept model. Establishing sub-time Dynamic Panel Data Model makes empirical research find that:Over time, current consumption by the impact of income gets smaller and smaller, but still greater than the effects of pre-consumption on it. the year of 1996-2008, food spending most affected by the pre- consumption, education culture entertainment spending most affected by the income, Furthermore, using the related data of income inequality and consumption make research find that the Gini coefficient is in the trend of expansion.The year of 1996-2002, the relationship between income inequality and consumption is positive, the year of 2002-2008, the relationship between income inequality and consumption is the opposite. Finally, based the conclusions of descriptive statistics and empirical analysis, put forward policy recommendations raising income and stimulating consumption.