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

Abstract

Purpose

The purpose of this paper is to research the status quo and future trend of the income elasticity of 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.

Citation

Luo, D. and Song, B. (2012), "Analysis of the income elasticity of the consumer demand of Chinese rural residents and prediction of its trend", Grey Systems: Theory and Application, Vol. 2 No. 2, pp. 148-156. https://doi.org/10.1108/20439371211260126