Moreover, the empirical model of the study has been developed on the
Engel Curve theory which further strengthens the overall importance of the study.
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.
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.
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.
Our objective is to test whether [f.sub.i]([x.sub.h], [CB.sub.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.
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.
The
Engel Curve for Health Services in Colombia: A Semiparametric Approach
Then, consumption expenditures are used in an
Engel curve regression to further test the sensitivity of results from the two samples.
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. An empirical illustration is given for Japanese consumer demand for nondurable goods and services.
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.
To entertain inelastic demand, a different functional form would have to be used.) 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.
[MATHEMATICAL EXPRESSION OMITTED] which is a specification of the
Engel curve depending on the specific form of [L.sub.j](p).