Empirical Analysis on Low Consumption Phenomenon of Urban Households in China

This paper made an analysis on consumption behavior of urban household in 29 provinces of our country considering the positive effect of consumption on economy. Firstly making model on income and consume situation of the whole urban households to see the whole consumption situation of our country;then creating panel data model on income and consume situation of urban households in 29 provinces of our country,and concluded that there is obvious difference among those areas as well as urban household consumption was always low and an apparent shortage of consumption demanding during those ten years using analysis on household income and consumption tendency.However,the enhancing of income gap and excess of low-income people along with the emphasis on income and weakening consumption behavior are the major reasons of consumption demanding deficiency.Due to this low consumption situation our government should exploit intensively the function of income redistribution,perfect distribution system,increase the ratio of mid-income and further extend consume field,improve consume environment,encourage reasonable consume.Therefore it can increase social average consumption tendency and every area consumption tendency,promote household consumption and display the positive effect of consumption on economy.