An Engel curve describes how household expenditure on a particular good or service varies with household income. There are two varieties of Engel Curves. Budget share Engel Curves describe how the proportion of household income spent on a good varies with income. Alternatively, Engel curves can also describe how real expenditure varies with household income. They are named after the German statistician Ernst Engel (1821–1896) who was the first to investigate this relationship between goods expenditure and income systematically in 1857. The best-known single result from the article is Engel's law which states that the poorer a family is, the larger the budget share it spends on nourishment.
Read more about Engel Curve: Shape, In Microeconomics, Applications
Famous quotes containing the words engel and/or curve:
“Now folks, I hereby declare the first church of Tombstone, which ain’t got no name yet or no preacher either, officially dedicated. Now I don’t pretend to be no preacher, but I’ve read the Good Book from cover to cover and back again, and I nary found one word agin dancin’. So we’ll commence by havin’ a dad blasted good dance.”
—Samuel G. Engel (1904–1984)
“Nothing ever prepares a couple for having a baby, especially the first one. And even baby number two or three, the surprises and challenges, the cosmic curve balls, keep on coming. We can’t believe how much children change everything—the time we rise and the time we go to bed; the way we fight and the way we get along. Even when, and if, we make love.”
—Susan Lapinski (20th century)