An Empirical Analysis and Thought of Chinese Consumption Function

As an important part in aggregate demand, consumption is a basic variable of macroeconomic control. The consumption function reveals the relation between consumption and its decisive factors, which is an important aspect of macroeconomic analysis. Such a kind of research is useful to analyze the effectiveness of macroeconomic policies. The paper firstly reviews the main theories of western consumption function, and then sets up three models of Chinese consumption function based on the western theory of consumption function. The empirical analysis to the three models indicates that there are contradictions between the models and realities, between the macro-consumption function and micro-consumption function. About the reason of it, the paper considers that it is mainly because we are lack of consumption theory of our own, which is important to set up the model of consumption function. So if we want to establish our own theory of consumption function, we must put our emphasis on the research of consumer behaviors, especially the consumer behaviors in the period of economic system transformation. The paper tries to put forward three basic hypotheses about consumer behaviors, which is helpful and beneficial to found a micro-base of consumption function.