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How should Engel's law be formulated?

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  • Manisha Chakrabarty
  • Werner Hildenbrand

Abstract

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.

Suggested Citation

  • Manisha Chakrabarty & Werner Hildenbrand, 2016. "How should Engel's law be formulated?," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 23(5), pages 743-763, September.
    • Handle: RePEc:taf:eujhet:v:23:y:2016:i:5:p:743-763
    DOI: 10.1080/09672567.2015.1050045
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    Cited by:

    1. Bjelle, Eivind Lekve & Wiebe, Kirsten S. & Többen, Johannes & Tisserant, Alexandre & Ivanova, Diana & Vita, Gibran & Wood, Richard, 2021. "Future changes in consumption: The income effect on greenhouse gas emissions," Energy Economics, Elsevier, vol. 95(C).
    2. Sologon, Denisa Maria & O'Donoghue, Cathal & Linden, Jules & Kyzyma, Iryna & Loughrey, Jason, 2022. "Welfare and Distributional Impact of Soaring Prices in Europe," IZA Discussion Papers 15738, Institute of Labor Economics (IZA).

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