The engelsche law is one of the German statistician Ernst Engel (* 1821; "† 1896) for the first time described regularity that the portion of its income, which a household spends on the nutrition with rising income sinks. This is equivalent with the statement that the income elasticity of the demand for food is smaller than 1.

The engelsche law is one at the best occupied empirical law of the political economy. The portion of the income is called also angel coefficient spent on the nutrition:

Angel coefficient

The angel coefficient is the portion of the expenditures for food of the entire consumer expenditures of a household. A low angel coefficient is considered as indicator to high material prosperity, this circumstances formulated for the first time the statistician Ernst Engel in the engelschen law designated after it.

Opposite the alternative prosperity indicator gross domestic product it has the advantage that the local price level is considered automatically.

Sources

• Angel, Ernst; The Productions and of the Kingdom of Saxonia, magazine of the statistic office royally Saxonian Ministry of the inside, Nr.8 and 9 (1857).

Articles in category "Engel law"

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