A Comparative Study on Urban and Rural Residents’ Consumption Behavior

The economic development is in the transition period in China,so the endogenous power of economic regime change and price fluctuation are active.Based on the related data of urban and rural residents' consumption during 1978-2011,the paper compares both of the dynamic curves of marginal propensity to consume,as well as the quantitative relations between consumption and price fluctuation in Eviews6.0 software.The results show that the economic regime change and price fluctuation have significantly different effects on urban and rural residents' consumption behavior.In order to improve the proportion of urban and rural residents' consumption in the GDP,the paper puts forward some relevant policy recommendations according to the comparison results.