This volume is mainly concerned with methods of estimating income elasticity. It is connected with economic development that can be achieved by reducing income inequality, a highly relevant subject in today's world for a wide range of policy areas.

The Measurement of Economic Relationships presents a critical review of the established approach to measuring relationships in business and economics and of the one that preceded it. The first approach is based on the notion of a process "generating" the observations in a certain "random"...