A Study of the Relationship between Consumption Upgrade and Changes of Consumption Tendency in China: A Dynamic Relationship between Upgrade, Expenditure and Income

The evolution of the residents’consumption behavior is a dynamic process of interaction between consumption upgrade,changes of consumption tendency and income growth.During the transition period,the changes of upgrading in residents’consumption will greatly influence the changes of consumption tendency.The empirical analysis shows that of all the major consumption items,the consumption on health care has a considerable restraining effect on consumption tendency,which has an important guidance function in policy framing.An effective policy of social security is of vital importance to boost consumption.