Analysis and prediction for the income elasticity of the consumer demand in Chinese rural areas

The income elasticity of consumer demand is an important indicator reflecting the relationship between consumer demand and income, which is a significant topic to research its status quo and future trend. The authors use Model ELES and Model GM(1, 1) to analyze and predict the income elasticity of consumer demand in the rural areas of China. The findings show that this indicator is quite large at present, but most sub-categories of the indicators show a declining trend in the future.