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Wieviele Parameter braucht eine Engelkurve? / How Many Parameters are Needed for the Estimation of an Engel Curve?

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  • Hufnagel Rainer

    (Hohenheim Institut für Haushalts- und Konsumökonomik, Universität Hohenheim, D-70593 Stuttgart)

Abstract

There have been doubts if the common demand systems as LES or even AIDS were flexibel enough to estimate Engel curves. It is shown that the propositions to introduce three or even more parameters into the estimation, can be justified by economic theory. A Lancaster model with an utility function that allows for subsistence levels and satiation barriers, can generate Engel curves which cannot be estimated adequately by the common approaches.

Suggested Citation

  • Hufnagel Rainer, 1994. "Wieviele Parameter braucht eine Engelkurve? / How Many Parameters are Needed for the Estimation of an Engel Curve?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 213(5), pages 561-571, October.
    • Handle: RePEc:jns:jbstat:v:213:y:1994:i:5:p:561-571
    DOI: 10.1515/jbnst-1994-0504
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