At the Origins ofEngel Curves Estimation
This paper revisits Ernst Engel's (1857) original article in which he systematically in-vestigated the relationship between consumption expenditure and income. While he ismainly remembered today for the discovery of Engel's law, we highlight how Engel ad-dressed in a particular way the issue of the relation between statistical empirical analysisand economic theorizing. Inspired by an inductive methodology, Engel's method to inferempirical regularities made no a priori assumption on the estimated functional form andanticipates many aspects of current non-parametric regression methods. Furthermore,Engel devised a quasi-behavioral theory of consumption centered on the concept of wantsto justify and explain his empirical results which he used to asses population living stan-dards. Although incomplete, Engel's consumption theory tackles a much neglected issuein consumption theory: what accounts for the manner in which consumption patternschange as income rises...
Year of publication: |
2008-04-30
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Authors: | Chai, Andreas ; Moneta, Alessio |
Institutions: | Max-Planck-Institut für Ökonomik <Jena> / Abteilung Evolutionsökonomik |
Subject: | Verbraucherverhalten | Ausgaben | Einkommen | income |
Saved in:
Extent: | 226304 bytes 16 p. application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Language: | English |
Classification: | Consumer behaviour ; Individual Working Papers, Preprints ; No country specification |
Source: | USB Cologne (business full texts) |
Persistent link: https://www.econbiz.de/10005865885
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