Analysis of Chinese rural residents consumption based on dynamic panel data

Dynamic panel data model is constructed to analysis the relationship between residential consumption and income based on the data of the three stratums of low income,middle-income and high-income in the whole country from 1997 to 2011 in this paper.The results show that there are varying degrees of rural residents’consumption habit in different income regions,the family business income and salary income play decisive roles in the residents’consumption expenditure,property income and transfer income play different effects on the consumption of the rural residents in different regions.