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  • Back to Engel? Some evidence for the hierarchy of needs

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    80594_1.pdf (608.9Kb)
    Author(s)
    Chai, Andreas
    Moneta, Alessio
    Griffith University Author(s)
    Chai, Andreas
    Year published
    2012
    Metadata
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    Abstract
    Using UK household expenditure data spanning over four decades (1960-2000), this paper employs Engel's needs-based approach to analyzing household expenditure patterns and finds evidence for the existence of a stable hierarchy of expenditure patterns at low levels of household income. Second, we investigate how rising household income influences the manner in which total expenditure is distributed across Engel's expenditure categories. Our results suggest that i) total household expenditure is distributed across Engel's expenditure categories in an increasingly even manner as household income increases and ii) over ...
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    Using UK household expenditure data spanning over four decades (1960-2000), this paper employs Engel's needs-based approach to analyzing household expenditure patterns and finds evidence for the existence of a stable hierarchy of expenditure patterns at low levels of household income. Second, we investigate how rising household income influences the manner in which total expenditure is distributed across Engel's expenditure categories. Our results suggest that i) total household expenditure is distributed across Engel's expenditure categories in an increasingly even manner as household income increases and ii) over time, there has been an acceleration in the rate at which household expenditure patterns become diversified as household income rises. Finally, we consider how the shape of Engel Curves may help shed light on the relationship between goods and the underlying needs they serve.
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    Journal Title
    Journal of Evolutionary Economics
    Volume
    22
    Issue
    4
    DOI
    https://doi.org/10.1007/s00191-012-0283-3
    Copyright Statement
    © 2012 Springer Berlin Heidelberg. This is an electronic version of an article published in Journal of Evolutionary Economics, September 2012, Volume 22, Issue 4, pp 649-676. Journal of Evolutionary Economics is available online at: http://link.springer.com/ with the open URL of your article.
    Subject
    Economic theory
    Microeconomic theory
    Applied economics
    Heterodox economics
    Publication URI
    http://hdl.handle.net/10072/47284
    Collection
    • Journal articles

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