Engel's law

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Engel's law

a principle that states that consumers will tend to spend an increasing proportion of any additional income upon LUXURY GOODS and a smaller proportion on STAPLE GOODS, so that a rise in income will lower the overall share of consumer expenditures spent on staple goods (such as basic foodstuffs) and increase the share of consumer expenditures on luxury goods (such as motor cars). See INFERIOR PRODUCTS, INCOME ELASTICITY OF DEMAND, INCOME CONSUMPTION CURVE, AGRICULTURAL POLICY.

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We illustrate in the paper the technique of Engel curve computation on the household's income and expenditure data originated from the Statistical Office of the Slovak Republic.

Engel's approach as a tool for estimating consumer behaviour

We present results from an Engel curve estimation specifically using the Working (1943) approach and a two-part fractional response model with instrumental variables to account for selection bias and endogeneity of remittances.

Consumption effects of foreign remittances in Jamaica

The study will make use of the Engel curve framework, which shows the relationship between a household's expenditure on a particular good and total household income, holding prices constant.

Consumption patterns of male and female headed households in Pakistan: evidence from PSLM 2007-08

h]) is such that child benefit has the same effects on expenditures as total expenditure CB does--we refer below to this latter effect as the Engel curve slope.

Who benefits from child benefit?

The article begins with two key economic concepts used in the analysis, Engel's law and the Engel curve, followed by the literature review on the applications of these concepts to services in general, and to telecommunications services in particular.

Bottom of the pyramid expenditure patterns on mobile services in selected emerging Asian countries

The Engel Curve for Health Services in Colombia: A Semiparametric Approach

La curva de Engel de los servicios de salud en Colombia: una aproximacion semiparametrica

Then, consumption expenditures are used in an Engel curve regression to further test the sensitivity of results from the two samples.

Income imputation and the analysis of consumer expenditure data: the Consumer Expenditure Survey now provides imputed income data from 2004 forward for households that do not report a specific income value; an examination of how income imputation affects the analysis of expenditure data shows that the results most sensitive to imputation are statistics that focus on households with lower levels of expenditures

This article provides a further look at the functional form of the synthetic model, showing that, at the individual consumer level, an arbitrary differential demand system has the same demand response to change in total expenditure as that of a specific form of Engel curve.

Differential demand systems: a further look at Barten's synthesis

For example, in Engel curve analysis y would represent the expenditure or expenditure share on some good or group of goods and x would represent total disposable income or the total budget.

Kernel regression in empirical microeconomics

This single parameter formulation imposes equal income elasticities for services and food, but the results are reinforced if the Engel curve is steeper for services since the growth rate of total consumption fell after the mid 1970s.

Commentary

MATHEMATICAL EXPRESSION OMITTED] which is a specification of the Engel curve depending on the specific form of [L.

A new approach to estimating Engel elasticities from concentration curves

Note: All figures calculated using respective Engel curve equations for each food at corresponding year.

Trade and management: exclusive economic zones and the changing Japanese surimi market