An Empirical Study Of Urban Dwellers' Income Per Capita Consumption And Disposable

With the rapid economic development of China, the living standard of urbanresidents gradually increased, especially the income and consumption level of them.If the income and consumption growth can be reconciled, it will promote theeconomy to grow healthy and steadily. The paper is guided under consumptiontheory and based on summarizing consumption issues. Deep analysis is carried outabout income level and consumption level of Yunnan urban residents. The functionof the consumption of Yunnan urban resident is founded, describing consumptionbehavior of urban residents in the long term. Then we analyze the co-integration ofstatistical data of per person consumption and per person disposable income. And theresult indicates that there is a long-term stable equilibrium relationship between them.On this basis, an error correction model was established. Thus explains theadjustments to deviating deviate from the long-term equilibrium made by errorcorrection coefficient. And the short adjustment and fluctuation of consumption andincome were described.The main conclusions of this paper are: With economic development andimprovement of income, the consumption level of urban residents is improvingsignificantly. But the level of consumption growth has lagged behind the growth ofincome levels, and the gap between them is gradually widened. Co-integrationrelation between per person consumption and per person disposable income ofYunnan urban residents is existed. The long term, the per disposable incomeincreases1%, per person consumption will grows0.8402%; the short term, changeof people’s consumption is influenced by change of this year’s income. And at theend of the paper, we present some relevant suggestions on how to rise per disposableincome and improve consumption of urban residents.