Because the consumption theory(Life Cycle-Permanent Income and Random walk Hypothesis etc.)which are often employed to study Chinese consumer behavior omit research of the institution and consumer saving motive,the conclusions of research do not give content answers about china consumer behavior. So based on the hypothesis of Excess-Sensitivity,this paper analyze the characters of the rural households consumption behavior and establish a consumption function equation and made a positive analysis to draw a conclusion. Then this paper give a new hypothesis about the rural households prudence and consumption.Investigation of Shandong and Hubei provinces validated this hypothesis. At last some conclusions are reached.
