Study on the Relationship between Chinese Farmer’s Consume and Permanent Income

摘要

To analyze Chinese farmer’s consume, this paper chose Friedman’s permanent income hypothesis and performed some econometrical analyses using the data which indicate farmer’s consume, which yielded the conclusion that the permanent income and the marginal consume propensity of the permanent income play an important role in affecting domestic farmer’s consume at present. Further more some political suggestions were proposed in two aspects, which are increasing the permanent income and raising the relevant marginal propensity to consume, to improve farmer’s consume.