Why Is the Farmers' Propensity to Consume Lower Than That of the Urban Residents?

I. IntroductionIts a generally accepted observation, which is supported by Keysians theory of absoluteincome, that Chinas low-income regions have a higher rate of consumption out of incomethan do the high-income regions, and in urban areas, low-income households have a higherrate of consumption than that of the high-income ones. However, for more than 20 yearssince the initiation of economic reforms and opening up, the consumption rate of thefarmers, who are in the low-income group, has been …