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Research on the Relationship between Income and Consumption of the Urban Residents in Hunan Province on the Basis of Error Correction Model

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  • Chen, Hui-min

Abstract

By using error correction model, I conduct co-integration analysis on the research of the relationship between the per capita practical consumption and per capita practical disposable income of urban residents in Hunan Province from 1978 to 2009. The results show that there is a co-integration relationship between the per capita practical consumption and the practical per capita disposable income of urban residents, and based on these, the corresponding error correction model is established. Finally, corresponding countermeasures and suggestions are put forward as follows: broaden the income channel of urban residents; create goods consuming environment; perfect socialist security system.

Suggested Citation

  • Chen, Hui-min, 2011. "Research on the Relationship between Income and Consumption of the Urban Residents in Hunan Province on the Basis of Error Correction Model," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 3(01), pages 1-4, January.
    • Handle: RePEc:ags:asagre:108408
    DOI: 10.22004/ag.econ.108408
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    Agribusiness;

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