关键词: 习惯形成, 示范效应, 消费结构

Abstract: This paper incorporates inter and external habit formation into consumption structure through building a theoretical model and uses the Difference-GMM method to empirically study the data of rural households in China’s 26 provinces from 1994 to 2007. Estimated result shows that: 1. Rural households’ consumer spending in China shows significant inter habit formation. Inter habit formation is similar to prudence and the larger the habit formation parameter, the higher the saving target, meaning consumer spending gets more frugal. This is also the important factor that the current rural consumer market has not yet to start 2.The consumer demonstration effect of urban households is embodied in transport and communications, education, cultural, recreation and services and health care and medical services. The three categories of expenditures are to be with very strong feature of “productive consumption”, to a certain extent, reflects the consumption of rural households is more focused on long term, rather than simple comparison. 

Key words: Habit Formation, Demonstration Effect, Consumption Structure