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

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.

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.

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.

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.

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.