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dc.contributor.authorMoneta, Alessio
dc.contributor.authorChai, Andreas
dc.contributor.editorNguyen, Tom
dc.date.accessioned2020-01-16T07:51:06Z
dc.date.available2020-01-16T07:51:06Z
dc.date.issued2010
dc.identifier.issn1837-7750
dc.identifier.otherRePEc:gri:epaper:economics:201009
dc.identifier.urihttp://hdl.handle.net/10072/390467
dc.description.abstractThe tendency for Engel curves to flatten out at high income levels is frequently cited as evidence that major shifts in household consumption patterns occur as household income rises. Empirically, little has been done to examine (i) whether saturation is indeed a general property of Engel curves, (ii) whether the rate at which Engel curves flatten out may signifcantly change over time, and (iii) how robust Engel curves are in the face of changes in the income distribution of households. Using data from the UK Family Expenditure Survey, we find evidence that saturation is indeed widespread among Engel curves across a wide range of goods and services. However, a tendency for their shape to shift over time, and for these shifts to co-move with changes in the income distribution of households, casts some doubt on whether the declining slope of Engel curves can be used to predict slowdowns in the growth rate of demand for particular goods and services. We also uncover evidence supporting the notion that industries tend to innovate goods and services in order to escape saturation pressure.
dc.format.extent27 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto27
dc.subject.keywordsD12 - Consumer Economics: Empirical Analysis
dc.subject.keywordsO12 - Microeconomic Analyses of Economic Development
dc.subject.keywordsC14 - Semiparametric and Nonparametric Methods: General
dc.subject.keywordsEngel curves
dc.subject.keywordsStructural change
dc.subject.keywordsDemand saturation
dc.subject.keywordsNonparametric estimation
dc.subject.keywordsHierarchy of goods
dc.title2010-09: The evolution of Engel curves and its implications for structural change (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicEconomics and Business Statistics
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2010
gro.hasfulltextFull Text
gro.griffith.authorChai, Andreas


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