An Empirical Analysis of the Impact of Disposable Income of Urban Residents on Consumption Expenditure in Beijing

Abstract

This paper analyzed the effect of per capita disposable income on the per capita consumption expenditure of urban residents in Beijing based on the urban residents' per capita disposable income and per capita consumption expenditure in Beijing from 1990 to 2015, by using the linear regression model based on Keynesian consumption function. And discovered that there are high dependency and put forward relevant suggestions to improve the per capita disposable income of urban residents in Beijing.