Income Source and Consumption of Rural Residents:the Conclusion and Enlightenment Based on Panel Data

Using the panel data of 31 provinces and municipalities from all over the country from 1997 to 2006,the authors analyze the impact of different income sources on rural residents' consumption level.The results show that when the income sources of rural residents change,the salary income replacing the income from household business becomes the main driving force of the consumption of rural residents;the effect of property income on consumption is not significant and the transfer income has multiplier effect.In the light of the current global economic crisis,the authors put forward the corresponding policy recommendations of starting the rural consumption market and stimulating domestic demand