Abstract: In the context of the digital economy and the new development pattern of "dual-circulation paradigm", residential consumption, which is one of the fundamental driving forces of economic and social development, is playing an increasingly important role. Based on theoretical analysis of the impact of digital economy development on residents' consumption and its transmission mechanism, we use panel data of 30 provinces and cities in China from 2006 to 2018 to measure the indicators of digital economy development and verify the theoretical mechanism, which shows that (1) digital economy development significantly promotes the improvement of residents' consumption level and the upgrading of consumption structure; (2) digital economy development affects residents' consumption through credit constraints and convenience of circulation; (3) digital economy development has differential effects on different consumption types, different consumer groups, different regions and different age groups; (4) further analysis finds that digital economy development has spatial spillover effects on residents' total consumption expenditure, survival-oriented consumption expenditure and development of hedonic consumption expenditure. Based on the above analysis, relevant policy recommendations are proposed.

Key words: digital economy, residents' consumption, consumption structure, consumption upgrading, spatial effect