Empirical Analysis of the Effect of the Income on the Consumption of Rural Habitants in Chongqing

Based on the theory of Friedman's permanent income and Chongqing's statistical data,this paper analyzes the effect of income and income structure on the demand of the consumption of rural habitants.The research indicates that the influence of permanent income and its marginal consumption trend on the consumption of rural households is the most prominent on the whole,that raising permanent income has positive effect on peasants' consumption expenditure,and that from the view of income structure,the influence of peasants' per capita income and household business income on the consumption is very obvious so that increasing wages and household business income can greatly stimulate consumption demand.Thus,Chongqing should vigorously raise peasants' permanent income level,increase peasants' income expectation and marginal consumption trend,meanwhile,broaden peasants' income-increasing channel,and boost the non-agricultural income growth of rural households.