Research On The Consumer Demand Effect Of The Income Gap Between Urban And Rural Residents In My Country

At present,China's economy has entered a new normal,and consumption has become the main force to promote economic development.However,the continuous expansion of income gap between urban and rural residents in China limits consumption demand.Therefore,it is of great significance to study the consumption demand effect of the income gap between urban and rural residents for the realization of a better life of residents and the healthy development of the national economy.Starting from the situation of our country,this paper provides a new angle for the study of consumption theory.Firstly,since the reform and opening up,the income gap between urban and rural residents and the changes in consumer demand are sorted out.Secondly,the relationship between them is theoretically analyzed from four aspects: income effect,average propensity to consume,marginal propensity to consume and Engel coefficient.Thirdly,with the help of Eviews and Stata software,a regression model and a panel model are constructed to analyze the relationship between the income gap between urban and rural residents,consumption demand and consumption demand structure.It is found that narrowing the income gap between urban and rural residents is more beneficial to consumption demand.Finally,the paper gives some suggestions on the positive interaction between urban and rural residents' income gap and consumption demand.