Research Of Rural Residents’ Consumption Of Time Preference In China

This paper aims at researching the current consumption of rural residents in China and its influential factors of time preference. In the context of the larger environment of the global financial crisis, this article analyzes the time preference of consumption of rural residents and its variation factors, and thus to formulate the effective policy measures to promote the growth of rural consumption, the research has very important practical significance.Rate of time preference reflects the population relative to the level of preference for current consumption. This article uses Ramsey model to estimate the rate of time preference of rural residents in China. The rate of time preference of consumption of rural residents in China obtains0.165, and also estimate the consumption of urban residents is0.176. The rate of time preference of consumption of urban residents is greater than rural residents’, that means:urban residents pay more attention to current consumption, while rural residents pay more attention to future consumption. In recent years, the construction of new countryside, China’s rural economy achieves a rapid growth, the consumption level of rural residents has been greatly improved, but to the level of consumption of urban residents, there remains a wide gap. In contrast, the savings rate of rural residents has been rising, that means the consumer’s time preference has formatted a "pay more attention to future than right now" view of consumption.For rural residents in the low rate of time preference, conducts a survey to analysis the major factors contributing to this phenomenon, analysis of its causes. First, the residents of individual factors is a decisive factor in terms of personal factors, leading to differences in consumer’s preferences. Among personal factors, the greatest impact is personal income; Second, the imperfections of the rural social security system have increased the rural residents to worry about their future life. Education, health care, pension are three big mountains, which pressure rural residents to worry, if the social security system cannot solve the three major worries of farmers, rural residents will still choose to save more, forming the time preferences of future; Third, social factors, the level of economic development in rural areas has a greater influence. To improve the rate of time preference of rural residents, to increase current consumption:First of all, to improve income-earning capacity of farmers, to increase the disposable income of rural residents; Second, improve the consumer protection system and facilities in rural areas, changing consumer,"pay more atention to the future" time preference tendencies; Finally, strengthening the construction of new countryside and improve the rural economic development.This article is divided into five parts. The first part is an exordium, the main content is the base of the topic, the research significance, the domestic and international research about the rate of time preference,and research methods, structural design, innovation and less of this article; the second part is to estimate the rate of time preference of rural residents’ consumption in China:the calculation method about the rate of time preference of rural residents’consumption, the reasons of this article selected the Ramsey model to estimate the rate of time preference of rural residents’consumption, and compare to the rate of time preference of urban residents’ consumption; the third section the focuses on the factors that influence the rate of time preference of rural residents’consumption; The fourth part is aimed to propose targeted policies to the factors; the fifth component is the conclusions and outlook, to make a briefly summarize about the main points of this study, to point out tthat will continue to research.