@article{Meng:113490,
      recid = {113490},
      author = {Meng, Jing and Hou, Ju-kai},
      title = {The Empirical Analysis of Difference of Urban-rural  Residents’ Marginal Propensity to Consume},
      journal = {Asian Agricultural Research},
      address = {2011-04},
      number = {1812-2016-142947},
      pages = {5},
      year = {2011},
      abstract = {According to the data concerning consumption and income in  55 Years of Statistics Chronicle of New China, China  Statistical Yearbook, by using econometric model, this  paper expounds the reason of shortage of residents’  consumption demand in China and tests the difference of  marginal propensity to consume of China’s urban-rural  residents. The results show that the urban residents’  marginal propensity to consume is greater than rural  residents’ marginal propensity to consume in China, but the  urban residents’ marginal propensity to consume tends to  decline, while the rural residents’ marginal propensity to  consume tends to rise. In terms of urban-rural income  structure, consumption structure and consumption of  consumer durables, this paper analyzes the reason of the  change of urban-rural residents’ marginal propensity to  consume, and it can be described from following 3 aspects:  first, urban residents’ income is mainly wage and salary,  while urban residents’ income is mainly operating net  income. The urban residents are conservative towards the  expected income, while rural residents are relatively  optimistic towards the expected income; second, in  comparison with rural residents’ consumption structure, the  urban residents’ consumption structure has big proportion  of unessential expenditure, so the income elasticity of  consumption is big; third, the urban residents’ traditional  consumer durables approach saturation, while the rural  residents’ traditional consumer durables are still at the  period of increase, and the urban residents’ purchase of  emerging consumer durables is inhibited, with great  fluctuation. Based on research results and actual  situation, this paper puts forward that the key of spurring  increase of China’s consumption demand is to expand  consumption demand of rural residents.},
      url = {http://ageconsearch.umn.edu/record/113490},
      doi = {https://doi.org/10.22004/ag.econ.113490},
}