Research and Analysis on the Model of Consumption of Residents in Xinjiang

The paper uses the ridge regression analysis to analyze the data(from 1991-2003)of the consumption and factors which influence consumption of residents in Xinjiang,and obtain the expenditure model.The result shows that the increase of resident's income makes the greatest contribution to the increase of the consumption level.Besides that,there are also other different factors that can influence the consumption level of residents,such as increase of peasants' income,bank rate,finance expenditure,population growth,education development and so on.Based on the analysis,the paper makes some useful suggestions which may improve the consumption of Xinjiang.