Abstract This paper investigates the effects of income growth, government expenditure and inflation on the growth of consumption. We introduce the consumption inertia effects. The empirical method is GMM. The results indicate that there are distinct characteristics in China’s urban and rural residents’ consumption. However, the consumption inertia’s alteration trend between urban and rural residents’ is quite different. Urban residents’ consumption inertia become more and more stronger with the change of other influence factors, while there is a U shape change for rural residents’ consumption inertia characteristic.
BI Yu-Jiang,FEI Tian. A Study of Consumption Differences of Urban and Rural Residents under the Consumption Inertia. Economic Survey, 2016, 33(5): 0120.
2016, Vol. 33 
