Effect Of Income Of Rural Residents In Shandong Province Nature Of Consumption

12session of the National People’s Congress meeting the requirements of expanding domestic demand, since the reform and opening up, China’s rapid economic growth, world economic growth miracle. A substantial increase in the level of national income, the total gross domestic product (GDP) in2012is nearly51.93trillion, people’s lives to achieve a well-off society in an all-round way, to the development of more comprehensive well-off direction and quickly toward development level. However, in the past, our country’s gross domestic product (GDP) has been driven by export-led and investment, China’s economic development at a higher level, significantly lower consumer spending accounts for a proportion of GNP, national consumer spending to expand domestic demand to increase become a reality before us. Income as the most important aspect affecting consumer spending, consumer spending of farmers and what impact, how it affects farmers’consumption expenditures become worthy of in-depth study of the problem. Thus, the income starting point to study the impact of the income of the farmers’ consumption expenditures, analysis of different income farmers affect consumer spending and the impact on solve lag farmers consumer spending will play an important role.Based on the above this study is divided into five main sections. The first part, background analysis and literature review of relevant domestic and international. Background analysis introduces the research background and current income on consumption. The second part, based on the introduction of the concept of the nature of the related theoretical studies of income and consumption and income and proposed. Third, some of the major empirical section of this article. Part Ⅲ describes the nature of the income of rural residents in Shandong Province and the changes in consumption analysis. Income is mainly responsible for the growth of income, permanent uncertainties Analysis of changes. Consumption is the total consumption, food, clothing, housing, household equipment, transportation, telecommunications, culture, education and entertainment, healthcare consumer spending. Part IV, first of all, is a derivation of the model building part. Secondly, the uncertainty by calculating income, growth in income, permanent income value, the use of panel data study of the total consumption of food, clothing, housing, household equipment, transport, communications, culture, education and entertainment, healthcare consumer spending to analyze the impact analysis to verify the hypothesis. The fifth part, according to the above empirical analysis combined with China’s national conditions and make relevant policy recommendations.By analyzing the uncertainty of income coefficient is negative, to reduce uncertainty revenue benefit to farmers to expand consumption in the proportion of total revenue; permanent income coefficient is positive and conducive to expanding consumption increase permanent income of farmers; growth income coefficient is positive, further enhance the growth of farmers’income, help farmers increased consumer spending. Coefficient of the coefficient of the growth in income in the basis of consumption expenditure structure development in the enjoyment and consumption expenditure structure coefficient, income increased mainly used for basic consumption, and further increase their income to enjoy the type of transition to the development of increased revenue.