Demonstration Study on the Relationship between Income and Consumption Expenditure of Chinese Rural Household in Different Years

In order to explain the correlation and variation between income and consumption expenditure of Chinese rural households in different years,in this paper the method of the canonical correlation analysis was used to research the province-level section data of 2000 and 2004 in the Chinese Statistical Yearbook. The result demonstrated that there was a significant correlation between income and consumption expenditure of Chinese rural households in different years,and the income from wage and salary was close to corresponding index of consumption expenditure.Compared to 2000,the consumption of rural households was transitted from living expenditure to non-living expenditure gradually in 2004,but canonical coefficients of the health care and medical services were lower these two years.For the real income of rural household was lower,these high-level and non-living consumption demand cannot be realized.Therefore,in order to enhance the quality of rural consumption and optimize the consumption structure,the policy suggestions on the income-increasing from wage and salary of rural households under the situation of other income-increasing space limited was presented.