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The article is devoted to the adaptation of Engel's curve tools for evaluating the wellbeing of Ukrainian households. In particular, the assessment of the welfare inequality, observed between households with the lowest equivalent per capita income and the most affluent households, as well as the main trends in the change of the consumption structure for the period 2014-2020. The research is based on the concept that overcoming the concentration of consumer spending around the purchase of food is a necessary condition for the launch of microeconomic mechanisms of socio-economic development because it allows households to actively invest in the accumulation of human capital and thus overcomes the monopoly of budget financing of social sphere industries. To assess the level of satisfaction with food needs, the Engel line "income - food consumption" was constructed and the coefficient of elasticity of food consumption from income was determined. Similar calculations were made concerning the consumption of goods created by the educational sector. According to the results of the Engel function development, the income elasticity of the absolute amount of food consumption is equal to 0.47: an additional percentage of income encourages households to increase the amount of food consumption by 0.47%. According to our calculations, the income elasticity of educational goods consumption is equal to 0.928 (an additional percentage of real income encourages Ukrainian households to increase the amount of educational goods consumption by 0.93%). Therefore, Ukrainian households value education enough and tend to use economic opportunities (income released from priority needs satisfaction) for expanding education consumption. Both assessments of elasticity coefficients indicate that the achieved level of meeting food needs for the vast majority of Ukrainian households does not allow them to count on the release of their funds from meeting basic current needs and the expansion of those expenses that have the character of investing in human capital and have a pronounced positive impact on the qualification level of labor resources and the productivity of their use in the national economy. [ABSTRACT FROM AUTHOR]

The article is devoted to the development of tools for evaluating the level and dynamics of Ukrainian households' well-being, by considering the availability of key groups of goods for households with different levels of per capita income. The results should contribute to taking into account a greater number of essential aspects of the households lifestyle and economic capabilities for assessing the achieved level of well-being, its dynamics, the differences of its components for different population groups, allowing to make policy and programs for its implementation more sensitive to the real needs of different aim groups. Engel's curves (defined by the linear form of consumption dependence on income – Working's function) and income elasticity of consumption were used to assess the degree of satisfaction of needs in two commodities, which are key for assessing the households' well-being. It was evidenced, that the still high (more than two times higher than in developed countries) income elasticity of food consumption indicates the extreme limitation of the resource provision for investing in the development of human capital by the households. At the same time, the propensity of households to invest additional income in the purchase of goods created in healthcare is quite high – at the level of developed countries. More affluent households (which were expected to have a higher income elasticity of healthcare goods consumption) are more actively using the advances of insurance medicine, while less affluent households still rely only on "out-of-pocket" healthcare costs. So, relatively poorer households are faced a clear lack of resources to meet their needs: the absolute amount of healthcare goods consumption for the least wealthy households is reduced against the background of the increase in the share of relevant expenses in the composition of consumer spending.

The article is devoted to the adaptation of Engel's curve tools for evaluating the well-being of Ukrainian households. In particular, the assessment of the welfare inequality, observed between households with the lowest equivalent per capita income and the most affluent households, as well as the main trends in the change of the consumption structure for the period 2014-2020. The research is based on the concept that overcoming the concentration of consumer spending around the purchase of food is a necessary condition for the launch of microeconomic mechanisms of socio-economic development because it allows households to actively invest in the accumulation of human capital and thus overcomes the monopoly of budget financing of social sphere industries. To assess the level of satisfaction with food needs, the Engel line "income - food consumption" was constructed and the coefficient of elasticity of food consumption from income was determined. Similar calculations were made concerning the consumption of goods created by the educational sector. According to the results of the Engel function development, the income elasticity of the absolute amount of food consumption is equal to 0.47: an additional percentage of income encourages households to increase the amount of food consumption by 0.47%. According to our calculations, the income elasticity of educational goods consumption is equal to 0.928 (an additional percentage of real income encourages Ukrainian households to increase the amount of educational goods consumption by 0.93%). Therefore, Ukrainian households value education enough and tend to use economic opportunities (income released from priority needs satisfaction) for expanding education consumption. Both assessments of elasticity coefficients indicate that the achieved level of meeting food needs for the vast majority of Ukrainian households does not allow them to count on the release of their funds from meeting basic current needs and the expansion of those expenses that have the character of investing in human capital and have a pronounced positive impact on the qualification level of labor resources and the productivity of their use in the national economy.

Why are price levels in Germany lower than in Switzerland despite comparable productivity levels and the possibility of goods arbitrage in this region? Standard theories in macroeconomics have severe difficulties in explaining this theoretically important outlier. We construct a dataset of 73 developed and developing countries to highlight the tight connection between price levels, product quality, and household wealth. We find that wealth per capita has a 20 percentage points higher explanatory power than income per capita — the key variable implied by standard theories. Analyzing more than 4000 product import categories, we find that Swiss unit values are more than twice as high as German unit values in the median product category. We then provide a theory linking these three forces. Wealth induces consumption shifts toward more expensive goods. As official price statistics tend to underestimate quality improvements, they overstate prices. In turn, higher product quality that comes with higher wealth inflates prices and thus contributes toward explaining price level differences across countries. [ABSTRACT FROM AUTHOR]

The aim of the article is expenditures analysis as a component of estimation of household financial condition. The results of the study were obtained according to the State Statistics Service of Ukraine on household expenditures for 2010-2020. In the process, the analysis was used as a method of theoretical knowledge of phenomena. Comparisons and measurements are used as empirical methods for the study. The existing approaches of domestic scientists and the methodology of the State Statistics Service of Ukraine on the nature and classification of household expenditures are analyzed. The Engel coefficient is proposed as an indicator of the estimation of the financial condition of the household and its value is calculated. Törnqvist functions for domestic households are built based on data on the composition and structure of expenditures. Engel's law and L. Törnqvist's functions allowed us to extrapolate to the sphere of household finance the conclusion that despite the increase in expenditures in absolute terms by more than three times, the financial condition of domestic households has not improved significantly. Construction of a linear function of the relationship between household food expenditures and factors of internal and external factors influencing their size; calculation of the direction and strength of their interaction through indicators of elasticity, correlation, and variance opens up prospects for further research in this area of financial science. [ABSTRACT FROM AUTHOR]

In studying individual consumption behavior, an important issue is the analysis of the relation between commodity expenditure and income. The subject of this paper is the analysis of clothing, footwear and housing consumption of households in Bosnia and Herzegovina. The aim of this paper is to quantify the impact of income on household expenditure for clothing, footwear and housing, with a focus on examining the validity of Second Engel's law in Bosnia and Herzegovina. Empirical research is based on the econometric modeling of Engel curves applying single equation modeling, using microdata from the Household Budget Surveys in Bosnia and Herzegovina, which are available for four years (2004, 2007, 2011, 2015). The surveys were carried out using the uniform methodology developed by the Statistical Office of the European Union (EUROSTAT). In order to achieve the research objective, six functional forms of Engel curves have been formulated and estimated. The intensity of the impact of income on relative changes in consumption was measured using income elasticities. Based on the estimated parameters and income elasticities derived from them, the hypothesis of unit elasticity of demand for the mentioned product groups in relation to household income was tested. Empirically estimated values of elasticities imply that the validity of the Second Engel's law in Bosnia and Herzegovina was partially confirmed: while clothing and footwear expenditures became elastic over time, expenditures for housing are inelastic in observed years. By comparing the estimated elasticities for different years in which the survey was conducted, it was revealed whether there were significant changes in the preferences of households in Bosnia and Herzegovina in the observed period. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Consumer & Consumption Research / Tüketici ve Tüketim Araştırmaları Dergisi is the property of Beta Basim Yayin Dagitim and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article examines the drivers of the long‐run structural transformation in Japan. It uses a dynamic input–output framework that decomposes the reallocation of the total output across sectors into two components: the demand side and the supply side, or technological change. To perform this task, we employ 13 seven‐sector input–output tables spanning 100 years (1885 to 1985). The results show that the demand‐side factors, as a combination of the Baumol and Engel effects, were the key explanatory factors in more than 60 per cent of the sector‐period cases in the pre‐Second World War period, while the supply‐side effect drove structural transformation in more than 75 per cent of such cases in the post‐Second World War period. Detailed decomposition results suggest that in most of the sectors, changes in private consumption were the dominant force behind the demand‐side explanations. The demand effect was found to be strongest in the commerce and services sector, which contributed to the rapid growth of GDP in Japan throughout the twentieth century. [ABSTRACT FROM AUTHOR]

In typical developing countries, a one-size-fits-all policies often tend to hurt the poor and vulnerable. Specifically, in food demand studies different social groupings have characteristically heterogeneous demand functions which may require unique attention in terms of food policies. In this paper, we examine the food demand characteristics of three categories of consumers in Ghana based on fourteen selected food commodity groups. We use the sixth round of the Ghana Living Standard Survey in 2012/2013 data collected by the Ghana Statistical Service in collaboration with the World Bank. We apply the Quadratic Almost Ideal Demand System (QUAIDS) to estimate price and expenditure elasticities of demand for food in both rural and urban areas in Ghana. Empirically, we find that fish and cereal products take close to half (about 46%) of the food budget of the average Ghanaian household. We also report heterogeneous food expenditure patterns across the six regions considered in the study. Surprisingly, we find that female-headed households disburse a higher proportion on food budget than their male counterparts. Also, in conformity to theory, we find that the very poor households allocate the highest proportion to food budget than the non-poor. These findings suggest that food policies in Ghana should be discriminately on social and geographical lines to protect the very poor from escalating food prices. Food aid and assistance programmes should target the aged, larger and very poor households and rural dwellers.

Optimism and pessimism influence economic choices. If consumers are optimistic, they tend to spend a greater proportion of their budget shares on luxuries and a lesser proportion on necessities. Many models of consumer expenditure do not take into account the influence of optimism and pessimism. This paper demonstrates a way to indirectly measure optimism and pessimism by focusing on patterns in Engel curve residuals for necessities and luxuries. Using the revised International Comparison Program (ICP) 2005 data covering 144 countries, this paper presents economy‐wide optimism and pessimism indicators. These indicators provide a useful complement to traditional economic measures of standard of living such as real gross domestic product (GDP) in purchasing power parity (PPP) terms. These indicators are non‐economic in traditional terms. However, since they are constructed as residuals from an economic analysis, they could act as a very useful complement to traditional economic indicators and, as such, may be termed "quality of life" indicators. [ABSTRACT FROM AUTHOR]

In this study, the impact of different food groups' consumption, social and economic indicator on the share of food in household expenditure in the rural and urban area of Iran investigated. For this purpose, panel quantile regression considered as the best technique. The results indicated that the impact of social and economic indicators and food groups' consumption varies in different quantiles. Moreover, between social and economic variables, income, food price index and literacy rate considered as the most effective determinants of food expenditure in rural and urban areas. Furthermore, consumption of cereal and dairy in a rural area and cereal and vegetables in an urban area do not affect the household's food expenditure; on the other hand, increase in consumption of meat and crop oils in rural and urban area upsurge the share of food in the household expenditure. Based on the results, the implication of policies, which lead to household income improvement and stabilized the food price can improve food availability in both rural and urban areas. Besides, the introduction of the innovative and stable method of dairy and vegetable production in a rural area and encouraging the urban household to consume more vegetables results in more diverse diet and enhance the food security and simultaneously don't increase the share of food in household expenditure. [ABSTRACT FROM AUTHOR]

The aim of the paper is to test the valability of Engel's law in the Romanian consumption dynamics after 1990. We used NIS ad EUROSTAT data to interpret the dynamics of the households' income and consumption expenditures and its structure by destinations. We explored the relationship between consumption and income through the regression analysis and found that the Engel's law applies in the Romanian economy, since 1990 to 2016, with specific evolutions and influences.

Copyright of Revista Colombiana de Sociologia is the property of Universidad Nacional de Colombia, Facultad de Ciencias Humanas, Departamento de Sociologia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Economy & Market Communication Review / Casopis za Ekonomiju i Trzisne Komunikacije is the property of Pan-European University Apeiron and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study aims to (1) determine the proportion of food cost to total household expenditure of farmers in Padang according to income groups, (2) determine the level of consumption of food (energy and protein) household farmers in Padang based on income level and (3) analyze conditions of household food security of farmers in Padang according to the income group. This research using survey method, whereas the data used includes primary and secondary data. Secondary data was obtained from the results of publications and information related to food security, while primary data was obtained through direct interviews with household members of farmers. The number of research samples was 60 households. Data analysis was done by disaggregation of household groups into low, medium and high groupings. The results showed that the characteristics of household farmers in the low, medium and high groups are not significantly different. Whereas in the average proportion of food cost to total expenditure has decreased, where in the level of low income to the proportion of food cost was 64%, medium was 62% and high was 61%. The level of consumption of food (energy and protein) at home based on the low, medium and high income level are dominant in good conditions, such as 70.83%, 62.50% and 100%. The condition of household food security in the high income level group was better where there are no more households with the condition of food insecure and insufficient households. According to Engel's Law, are the higher income of a person (household), then the percentage of cost on food will be smaller as evidenced in this study. [ABSTRACT FROM AUTHOR]

The article provides an analysis of investment portfolio separation and myopia using microeconomics, particularly Engel curves, budget lines, and indifference curves. The investor's decision problem is discussed through a hypothetical investor who is interested in maximizing the expected return of a concave utility function in a short time in the securities market. A number of theorems and proofs are presented that show that the conditions that are needed for portfolio separation are also needed for myopia.

Engel's Laws and the concept of social class developed by Pierre Martineau have in recent years become increasingly important to those concerned with segmenting markets. In this article, the author suggests that marketers have not really begun to make effective use of the social class concept. He further suggests that substantial data now exist which would permit the use of social class criteria other than income class. [ABSTRACT FROM AUTHOR]

In recent years the validity of Engel's Laws, with reference to consumption expenditures, has been open to question. The first law was stated in 1857 in Western Europe where economic conditions were much different from today. Do the laws still hold in a mature American economy? This article discusses results from a test using income elasticity as the method. Data were supplied by the 1960-61 study of the Bureau of Labor Statistics. [ABSTRACT FROM AUTHOR]

The article presents analysis of consumer spending, specifically focusing on the relations between income and discretionary spending. The work of German statistician Ernst Engel is referenced as a foundation for much research in consumer expenditure forecasting. Engel is credited with theorizing rules for the relationship income has on spending for clothing, food, health, recreation, luxury goods, rent and utilities. The article addresses the question of whether these consumer expenditure theories apply over extended periods of time.

The purpose of this research is detection of characteristic features and regularities in food consumption by the population of the Arkhangelsk region on the basis of statistical estimation of such econometric indicators as the growth rate of food expenditures with change of the income of households of this population, and also income elasticity of expenditures and income elasticity of a share of food expenditures. For calculation of these indicators the nonlinear one-factorial regression model describing interrelation of the income and food expenditures of the population of the Arkhangelsk region was offered. In the paper the considerable attention is paid to check of accomplishment of conditions of reliability and importance of this regression model. For carrying out the statistical analysis microdata of selective examinations of budgets of the households of the Arkhangelsk region for the IV quarter of 2012 conducted by Rosstat were used. For data processing the packet of the statistical analysis of SPSS was used, and the solution of objectives was performed by methods of the correlation and regression analysis, and also by means of check of distributions of the researched quantities to a normality and the analysis of a regression residuals. During the research double logarithmic regression model was developed and statistically significant equation of regression which adequately describes interrelation of an income and food expenditures of households of the Arkhangelsk region is received. Proceeding from the received regression equation, income elasticities of expenditures and of a share of food expenditures were calculated: value of elasticity of the first size showed that in case of increase in incomes of the population of the Arkhangelsk region by 1% food expenditures increase on average for 0,5%, the received negative value of elasticity of a share of food expenditures demonstrates that in case of increase in incomes of this population by 1% the share of food expenditures decreases on average for 0,5%. On the basis of the carried-out regression analysis where, in addition, special attention was paid to check of observance of necessary conditions for its application, and estimation of the corresponding econometric indicators, it is possible to draw the following conclusions on food consumption by the population of the Arkhangelsk region: with increase in income food expenditures of households also increase, however the growth rate of such expenditures decreases; owing to income elasticity of expenditures, small in comparison with unit, food for the population of the Arkhangelsk region are essential goods; at last, food consumption by this population is in a consent with the economic Engel’s law determining dependence of a share of food expenditures in volume of incomes of households on their level.

Let R be a noncommutative prime ring with its Utumi ring of quotients U , C = Z ( U ) the extended centroid of R , G a generalized derivation of R and I a nonzero ideal of R. If I satisfies any one of the following conditions: (i) [ [ G ( [ x , y ] n ) , [ x , y ] n ] , G ( [ x , y ] n ) ] ∈ C , (ii) ( G ( x ∘ n y ) ∘ ( x ∘ n y ) ) ∘ G ( x ∘ n y ) ∈ C , where n ≥ 1 is a fixed integer, then one of the following holds: (1) there exists λ ∈ C such that G ( x ) = λ x for all x ∈ R ; (2) R satisfies s 4 and there exist a ∈ U and λ ∈ C such that G ( x ) = a x + x a + λ x for all x ∈ R ; (3) char ( R ) = 2 , R satisfies s 4 and there exist λ ∈ C and an outer derivation d of R such that G ( x ) = λ x + d ( x ) for all x ∈ R. [ABSTRACT FROM AUTHOR]

Increasing income brings about a decline in the relative importance of food consumption, a wider spread of spending patterns, and a demand for higher-quality goods. Using an index-number approach, this article analyzes these three closely-related tendencies. Stripping out the impact of prices from the dispersion of food expenditures gives a volume-based measure of diet diversity that is relevant for nutrition. Using unpublished data from the World Bank's International Comparison Program for 31 items of food in more than 150 countries, we find that diets of rich countries are substantially more diverse than those of the poor; and that volumes are the more appropriate way to measure the inequality of diversity. The quality of the food basket, based on the luxury-necessity distinction of consumption, increases with income, but the elasticity is small. There is a modest tendency for the structure of prices to be regressive since prices of luxuries relative to necessities are lower in richer countries. Additionally, our diversity and quality measures are shown to have implications for demand analysis and well-being. [ABSTRACT FROM AUTHOR]

This paper presents an economy-wide consumer expectations indicator that reflects different degrees of optimism or pessimism with respect to consumers' confidence in their economy. The indicator provides a useful complement to traditional economic indicators that are frequently used to compare countries, such as gross domestic product (GDP) in purchasing power parity (PPP) terms. Our indicator may be seen as representing the influence of social wealth on economic behavior-that is, of effects left out of a standard economic analysis. We use a theoretical approach to integrate the expectations measure with the International Comparison Program's (ICP) PPP GDP statistics which produces a measure we term 'effective GDP.' Compared to the ICP's PPP figures, the measure of 'effective GDP' differs from the ICP's PPP estimates by as much as four to five percent in the positive direction for apparently optimistic countries and as much as two percent downwards for pessimists. [ABSTRACT FROM AUTHOR]

L'articolo richiama i principali contributi di Paolo Leon all'economia e alla politica economica con un'enfasi specifica sui libri da lui pubblicati. Gli autori si concentrano sull'interpretazione di Leon della legge di Engel e delle sue implicazioni macroeconomiche, nonché sulle relazioni tra sviluppo capitalistico, domanda effettiva e cambiamento strutturale. The article recalls Paolo Leon's major contributions to economics and economic policy with a specific emphasis on the books he published. The authors focus on Leon's interpretation of Engel's Law and its macroeconomic implications, as well as on the relations between capitalist development, effective demand and structural change. JEL codes: B32, E12, B51

We consider the efficiency of approximating real numbers by their convergents of Engel continued fractions (ECF). Specifically, we estimate the Hausdorff dimension of the set of points whose ECF-convergents are the best approximations infinitely often. We also obtain the Hausdorff dimensions of the Jarnik-like set and the related sets defined by some growth rates of partial quotients in ECF expansions. [ABSTRACT FROM AUTHOR]

This article examines the long-term impact of government intervention and sectoral productivity on structural transformation. We construct a multi-sector Dynamic General Equilibrium model that explicitly incorporates government intervention as a force of structural transformation. The government affects the economy through taxation and lump sum transfers. We show that in the steady state, a reduction in the tax rate and an increase in sectoral productivity will decrease the agricultural employment share, and when nonhomotheticity of preference is strong enough, these changes can also increase the share of services employment. [ABSTRACT FROM PUBLISHER]

In this paper, by considering the notions of polygroup and Engel group, we introduce the concept of Engel fuzzy subpolygroups. In this regard, by a normal Engel fuzzy subpolygroup of and , the fundamental relation on a given polygroup , we construct an Engel fuzzy subgroup . We obtain a necessary and sufficient condition between Engel fuzzy subpolygroups and the Engel group /, the group of equivalence classes derived from a fuzzy subpolygroup of . Finally, by using these results, we get Zorn's lemma, in the Engel fuzzy subpolygroups. [ABSTRACT FROM AUTHOR]

We estimate the CPI bias in Korea by employing the approach of Engel’s Law as suggested by Hamilton (2001). This paper is the first attempt to estimate the bias using Korean panel data, Korean Labor and Income Panel Study(KLIPS). Following Hamilton’s model with non­linear specification correction, our estimation result shows that the cumulative CPI bias over the sample period (2000-2005) was 0.7 percent annually. This CPI bias implies that about 21 percent of the inflation rate during the period can be attributed to the bias. In light of purchasing power parity, we provide an interpretation of the estimated bias.

Engel's law expresses a “negative stochastic association” of income and the proportion of income that is spent on food. However, there are many quite different notions of “negative stochastic association” and consequently there are different ways of defining Engel's law. We relate these different concepts to Engel's original statistical analysis and show that one must give credit to Engel for the first non-parametric statistical analysis of budget-data. [ABSTRACT FROM PUBLISHER]