Empirical Analysis of Change of Consumption Structure between Henan Urban and Rural Residents

Based on sectional data regarding income and expenditure of Henan urban residents from 2006 to 2009, this paper applies ELES model to have a quantitative analysis of consumption expenditure structure of Henan urban and rural residents, involving three aspects including marginal propensity to consume, demand income elasticity and price elasticity. The results show that the marginal propensity to consume of rural residents is relatively low, the proportion of basic consumption expenditure in foodstuff and dwelling is large, giving priority to living type consumption, while some development potential for urban residents exists in the consumption of transportation, correspondence, culture and education, recreation and medical care.