Abstract:This paper innovatively constructs a panel extended linear expenditure system (ELES) model including the theory of internal and external habit formation and analyzes the time effect of consumption habits and the regional differences of the comparison effects on rural residents in a variety of consumption expenditures from a temporal and spatial perspective. This research demonstrates the following. Firstly, overall, rural residents have least internal habits in terms of subsistence spending, followed by develo… Show more
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