Abstract: In the present paper the uncertainties faced by Chinese residents and the influence path of these uncertainties on the consumption demand of urban and rural residents in China were analyzed, and based on the macro data from 1978 to 2012 in Statistical Yearbook of China, these uncertainties were divided into income uncertainty and expenditure uncertainty by “adjusted deviation rate”. Then, the extended model of consumption function on uncertainty was set up. Empirical study was conducted to study the influences of these two kinds of uncertainties on urban and rural residents consumption in China, and especially on the differences of the influences between the two kinds of uncertainties. The results showed that income uncertainty had stronger impact on rural residents consumption than urban residents, and expenditure uncertainty had greater impact than income uncertainty both on urban and rural residents consumption compared to income uncertainty.

Key words: income uncertainty, expenditure uncertainty, urban and rural residents consumption, adjusted deviation rate