Analysis of the income elasticity of the consumer demand of Chinese rural residents and prediction of its trend

摘要

Purpose - The purpose of this paper is to research the status quo and future trends of the income elasticity of the consumer demand of Chinese rural residents. Design/methodology/approach - The paper uses model ELES and model GM (1,1) to analyze and predict the income elasticity of consumer demand in the rural areas of China. Findings - The findings show the indicator that the income elasticity of consumer demand in the rural areas of China is quite large at present, but most sub-categories of the indicators show a declining trend in the future. Practical implications - The paper includes implications for the relevant departments to adjust the economic polices timely and reasonably according to specific form based on the findings above. Originality/value - The income elasticity of consumer demand is an important indicator, reflecting the relationship between consumer demand and income, so it is of great significance to research it.