Beyond Engel's law - A cross-country analysis

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2013
Volume: 47
Issue: C
Pages: 118-134

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Engel's law is known to be extraordinarily consistent across time and space. To substantiate the distinction between necessities and luxuries, already Ernst Engel (1895) approached a behaviorally founded comprehensive assessment of structural changes in consumer expenditures. To build upon Engel's legacy and to complement the scarce empirical literature, a behavioral approach is applied. It is conjectured that differences in satiation patterns of universally-shared needs translate, on the aggregate level, into different shapes of Engel curves and thus also into different income elasticities of demand. Utilizing nonparametric regression techniques, it is explored whether and which expenditure categories change systematically with rising income. In line with the theoretical expectations, a number of empirical regularities in consumer expenditure patterns can be identified that go well beyond Engel's law.

Technical Details

RePEc Handle
repec:eee:soceco:v:47:y:2013:i:c:p:118-134
Journal Field
Experimental
Author Count
1
Added to Database
2026-01-25