| The population of the rural residents in China is more than half of the total population. In order to expand domestic demand, we should release potential in the countryside. In Zhejiang Province, Jiangsu Province and Shanghai, for instance, the income level for the rural residents is particularly high in China, but they still prefer saving to consuming for many reasons. Their ability to consume has not been improved yet. This situation can be partly attributed to the imperfect of the public goods supply mechanism in rural area.The contribution of rural public goods to improve consumption is still limited in China. As to promote its contribution, it is necessary to analyze how does it work, the mechanism of the improvement. At the same time, the productive public goods in rural area help to reduce the cost of production, increase income and influence consume habits of rural residents indirectly. However, the nonproductive public goods help to improve the living environment and social environment in rural area, so as to influence consume habits of rural residents directly. Therefore, this paper focus on the direct affect from the nonproductive public goods supply, finding out whether it will effect the consumption of rural residents by changing their prices.Using the data from 2001 to 2012 in Zhejiang Province, Jiangsu Province and Shanghai, this paper conducted on an empirical study. There are six chapters in this paper, expounding the current consumption situation in rural area, changes towards price index of nonproductive public goods and how does the nonproductive public goods work in rural area. At last, giving out some policy suggestions about improving rural residents’ consumption situation. The main contents are as follows:The first chapter mainly including the research background, the problems put forward, research purpose, methods and significance, also the possible innovation and deficiency.The second chapter studies the previous research achievements about the rural public goods supply theory, consumption theory and consumption affect of rural public goods supply, summarizing their shortcomings. Most researches only prove the fact that public goods supply can raise the consumption level, less likely to analyze and explain whether changing the price of public goods will affect the consumption or not. From theoretical analysis, the affect of nonproductive goods supply cannot be confirm, whether decreasing price will increase consumption cannot be sure, because the "substitution effect" and the "income effect" exist at the same time.The third chapter use the data from Zhejiang Province, Jiangsu Province and Shanghai, expounding the current consumption situation in rural area, changes towards price index of nonproductive public goods. Including analyze the existing problems and their causes. The results show that the consumption level of rural residents in these places has improved, but Engel coefficient is still high; the quantity of durable products in each household rises to a higher level, but the consumption structure has not been promoted. At the same time, the price index of all kinds of nonproductive public goods in Zhejiang, Jiangsu and Shanghai is rising, leads to an unoptimistic situation.The forth chapter use the data from Zhejiang Province, Jiangsu Province and Shanghai, analyze the mechanism of the improvement. The results indicated that changing the price of the nonproductive public goods cannot affect the famer’s consumption amount directly, but can influence the consume patterns and preferences of the rural residents.The fifth chapter drew the main conclusions based on the analysis of this paper and asks some policy suggestions to promote consumption level of rural residents. Insist increasing investment in rural nonproductive public goods and stabilizing prices, also increasing productive public goods supply and making efforts to improve rural residents’ income. |
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