Research on State Space Model About Relationship Between Consumption and Income of Rural Households——Based on Statistical Data From 1990-2009 in China

The statistical data are selected about annual living expenditure per capita and annual net income per capita of rural households from 1990-2009 as a sample to study the dynamic relationship between consumption and income of rural households in China.And the time varying parameter model is constructed based on state space model.It is showed that the spontaneous consumption of rural residents is 94.87 yuan(with the price of 1990 as the base),and the marginal propensity to consume fluctuates from 0.63-0.73 more or less.That is to say,if the income of rural residents increased by 100 yuan,there would be about 63-74 yuan used for living expenses.Annual net income per capita and annual living expenditure per capita of rural households has increased gradually and considerably in recent years.However,compared with the consumption and income of urban residents,there is still a wide gap.It is suggested that living standards of rural residents should be improved by increasing the income of rural residents,improving the social security system and so on.