The Empirical Study On The Consumption Of Urban Residents In Jiangxi Province

Consumption is a primary force shaping the national or regional economic growth, residents’ consumption behavior is a direct impact on internal factors. Consumption of the residents plays a key role on the entire society’s stable economic growth. The consumer behavior changes directly affect the market supply and demand. In addition, the dominant of the urban economy in our country, its development level will directly affect China’s economic development speed, which is especially true for Jiang xi province. Therefore, it is necessary to conduct the thorough research to the consumption of the current state of the urban residents in Jiangxi province.This paper, using the relevant data, researches consumption of urban residents of Jiangxi Province from two aspects. The first aspect is the use of consumption function model to study on urban residents’ consumption behavior, which is absolute income consumption function model, the relative income consumption function model, permanent income consumption function model and error correction model. What’s the obtained conclusion is that the seven level of income of urban residents’ consumption basically meets absolute income consumption function model; the lowest income households, lower-middle income households, middle-income households, middle income and highest income households basically meet household permanent income hypothesis; low income households, lower-middle income households and the highest income households meet only part of the theory of relative income hypothesis. Therefore the paper considers each consumption function model reflects different focus on urban residents’ consumption situation of Jiangxi Province. Through the error correction model,this paper gets the conclusion that the growth rate is proportional to income and consumption growth, but the impact on consumer income is lower than the coefficient of variation of long-term impact of changes in income on consumption. The second aspect is the use of extended ELES model to study on consumption structure of urban residents, getting the marginal propensity to consume eight categories of consumer goods, basic consumer demand, the marginal share of the budget, income elasticity of demand. Thus, basing on the characteristics of different income level urban residents’ consumption, this paper Proposes the countermeasures on prosperity of the consumer market.