Study on the Relationship between Disposable Income and Consuming Expenditure Based on the Heteroscedasticity

摘要

This paper selects the data of average urban household annual disposable income and expenditure on consumption in 2000 from randomly selected 20 Chinese provinces, and applies log-log model to fit the linear equation of disposable income and consuming expenditure. Using cross-sectional data might cause heteroscedasticity, which could be judged via the scatter diagram , the G-Q testing and White testing methods, and then the possible heteroscedasticity will be modified by the method of weighted least squares. Finally, the quantitative relation between disposable income and consuming expenditure is established, and the degree of the influence of disposable income on consuming expenditure is measured.