Difference of Life Expenses among Rural Residents ——A Case of Anhui Province, China

Literature review on the status of consumption difference of rural residents and its causation analysis is carried out. Researches introduce the status and causation of consumption cap in rural residents from different aspects, which mainly analyze the obsolete data from the macroscopic angle by measuring methods. Only a few researches analyze the data in recent years from the provincial angle by using Theil index as the analysis index. Therefore, taking Anhui Province as an example, Theil index is selected to calculate the consumption gap of rural residents in Anhui Province in the years 2003-2008, according to the sample survey of rural households in Anhui Province in the years 2004-2009. Through the analysis of living consumption expenditure of rural residents, consumption change and its various internal causes are studied. Result shows that differentiation change of food and residence consumption expenditure is the major reason for the differentiation change of living consumption expenditure. Proportions of other expenditures are relatively small, having little impact on the living consumption of rural residents. Based on this, suggestions are put forward in order to minimize the difference in living consumption expenditure in rural areas, such as enhancing the income level of middle and low-income family in rural areas, improving the reform of education and health care, and strengthening the construction of rural road.