Inter-temporal Consumption Of Residents In Our Country

With the pace of reform and opening up, the economy of our country is grouting fast while it is also facing into the new normal. As the second largest world economy, expanding domestic demand, especially consumer demand become the main power of stimulating economic growth in our country. So researching consumer behavior of resident in our country, the inter-temporal consumption is an important economic variables as measure of resident in our country between consumption and saving of the important indicators, that further decided to China’s investment and savings levels. On the basis of theoretical analysis and drawing on research results of scholars at home and abroad for reference, based on the analysis of consumer behavior in China under the framework of the characteristics of urban and rural residents of consumer behavior in China, and the cause. And further according to the National Bureau of Statistics for the division of China’s three major economic zones, which is estimated inter-temporal elasticity of substitution, to arrive at consumer differences of eastern, central and western regions.In this text, it has expounded the background and significance of research on the consumption problems, based on the inter-temporal decision theory of Irving Fisher (Irving Fisher) and Frank Ramsey(Frank Plumpton Ramsey) of the Ramsey Model. By the analysis of the income and savings inter-temporal consumption influence of Chinese residents, and framework of Ramsey-Cass-Koopmans model, we can get a framework.It contains two economic behavior, manufacture behavior and consumer behavior(i.e., describe the behavior of firms and households economic behavior). In this part, we will use the K-R model of GuLiu bao and XiaoHong ye, by reference literature both at home and abroad, it is related to the inter-temporal elasticity of substitution a and risk aversion coefficient. We will calculate the inter-temporal elasticity of substitution and the risk aversion coefficient by using the data on the website of the National Bureau. Finally, according to the inter-temporal elasticity of substitution, we will compare the difference of China’s eastern, central and western regions and suggest some solution to expand consumer demand in China.