A Study On Resident Consumption

Consumption,as one of the three engines that boost economic growth on the demand side,is of great significance to the economic development of a country.However,it has been a long time that Chinese residents' consumption is too much lower than that of other countries which are in line with China at the aspects of income level.The low consumption of residents would brought certain bottlenecks to the long-term stable economic growth and create frustrations.In order to find out the reasons for the sluggish consumption of residents in China,this paper starts with an analysis of the consumption behavior of a typical household,then with a further research by introducing the population dependency ratio as a surrogate variable of population age structure to study the residents' consumption in China during the year from 1990 to 2017.As an empirical study,and since the theoretical population dependency ratio can not accurately reflect the exact burden of Chinese working age population group,this paper has adjusted the theoretical population dependency ratio with the quantity and quality of the dependent population respectively.In terms of quantity,the students with middle and higher education background are classified into the category of tribe who are being raised,and in the aspect of quality,standard consumption coefficients are used to standardize the consumption of children and the elder.After adjusting the population dependency ratio,this paper adds dummy time variable into this analysis model to study the dynamic relationships between the average consumer propensity and the population dependency ratio.The results show that:(1)The changes in inflation,the growth of disposable income,age structure of population had a significant effect on the consumption of residents.Before 2010,the decrease in the average consumption propensity of residents in China was partly due to the high inflation rate,the fast growth of disposable income,the decline in children dependency ratio and the increase in elder dependency ratio;(2)The impact of the population dependency ratio on the average consumption propensity of residents was dynamic.From 1990 to 2017,while time was going by,the influence of children dependency ratio and elder dependency ratio on the average consumption propensity of residents had reduced gradually;(3)The year of 2010 was a turning point: the exposure impact of elder dependency ratio on the average consumption propensity of the residents had changed.Before 2010,elder dependency ratio had a negative impact on that.But after 2010,elder dependency ratio had a positive impact on the average consumer propensity of residents.With the reasonable expectations that Chinese aging would be worse in the future,this paper proposes corresponding suggestions and countermeasures on how to promote household consumption with reference to the above analysis.