Testing the consumption function of Chinese rural household

摘要

Keynesian consumption function, Duesenberry's consumption function, Modigliani's life-cycle consumption function, Friedman's permanent income hypothesis and the “ramble walk consumption function” are fitted on Chinese rural household data from 1978–2009. The results show that only the “ramble walk consumption function” past the test and the permanent income hypothesis reluctantly past the test. So it is obvious that the consumption behavior of the Chinese household is very special, and is more complex than current consumption theories can completely explain.