A Co-integration Study on the Income Consumption Relationship of Guangdong Rural Residents

This paper builds an income consumption model based on the income consumption theory and co-integration theory,with which analyses the relationship between living consumption and income of Guangdong rural residents.The study shows that: first,there is irreversible ratcheting effect on the consumption and income of Guangdong rural residents;second,the current income plays an important part on the current consumption;third,the consumption behavior of Guangdong rural residents is characterized by rational regression;finally,the declining trend of consume rate won't change within a short time.