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Rural Credit Union (RCC) is a key financial organization of rural financial system; its efficiency is always focused. Existed studies concentrated on RCC operating efficiency, while from the perspective of household's welfare, this paper considers that RCC should aim to relieve fa rmer's credit rationing and improve farmer's welfares So firstly, improved Keynesian consumption function is proposed, consumption is suitable index for farmer's welfare from Mathematical derivation; secondly, VAR model is adopted to experience analyze farmer's welfare; finally, the result shows that RCC loan improves farmer's welfare and it is a efficient organization.

An Empirical Analysis on Rural Credit Cooperatives Efficiency-Viewing from the Improvement of Peasant Households Welfare