Comparative Study on Consumption Structure of Urban and Rural Residents in Shanxi by Using ELES Model

By using the extended linear expenditure system model(ELES),we calculate the marginal propensity to consume,income elasticity of demand and price elasticity values and comparatively analyze the differences between consumption structure of urban and rural residents in Shanxi Province.The results show that the consumption of rural residents is weak;the consumption structure has lagged far behind the consumption structure of urban residents.Therefore,we should focus on substantial increase in revenue of rural residents and optimize the consumption structure of rural residents.In addition,government should speed up urbanization of city field,improve the consumption environment and urban and rural social security system.