Consumption Sensitivity about Urban Residents in China with Different Income Level

First use methods of theory and empirical to find that the hypothesis of LC/PIH in explaining our country's urban residents consumption has certain limitation.So introduce liquidity constraints condition into LC/PIH hypothesis,constructing a new consumption model to study consumption behavior and the sensitivity of consumption to income.Theoretical and empirical results show that the new consumption model explains urban resident consumption is more rational,the consumption sensitivity of Urban Residents with different income level is not strong,show some of the smooth characteristics.It also found that,in the influence of liquidity constraints and uncertainty,consumption sensitivity about different urban show a W type curve distribution.