Research on the Relationship between Consumption and Income of Urban Residents Based on ECM in China

摘要

At present, economic development in our country had made gratifying achievements, but also highlights the imbalance of economic structure, that the total investment of the whole society share of GDP continued to grow and household savings rise yearafter year. The article took co-integration theory and error correction model as the basis, use the data which is 1978-2008 urban per capita consumption and per capita disposable income do the co-integration test and establish the error correction model, and deeply explore the intrinsic relationship between economic variables, and then pertinently put forward the policy recommendations that how to expand domesticand improve household consumption.