Comparative Analysis of the Influencing Factors upon Urban and Rural Residents' Consumption in Our Country

This paper established the co-integration equation and the ECM model to study the factors of residents' consumption demand in our country from the urban and rural comparative perspective.The article found that the impact of income levels on the consumption of the urban and rural residents is the greatest.The impact of income distribution and government expenditure on the consumption of urban and rural residents is almost the same in the absolute level,however the effects of both on the consumption of urban and rural residents were of significant differences.Government expenditure had a positive crowding-in effect on the consumption of urban residents,while it would have negative and the crowding-out effect on the consumption of rural residents.Despite the consumption of urban and rural residents and the gap of income distribution moving along the opposite direction,the consumption of rural residents reacted about the gap of income distribution to a greater extent.