Engel's Law is a law drawn by German statistician ernst engel from the statistical data of consumption structure changes in the19th century. The less household income, the greater the proportion of household income and expenditure for food. With the increase of household income, the proportion of household income and expenditure used for food will decrease.
By extension, the poorer a country is, the greater the proportion of the average income and expenditure of each national is spent on food, and this proportion shows a downward trend with the prosperity of the country.
The formula of Engel's law:
The ratio of food expenditure to total expenditure (R 1)= percentage change of food expenditure ÷ percentage change of total expenditure.
Ratio of food expenditure to income (R2)= percentage change of food expenditure/percentage change of income.
Engel's coefficient poverty is above 59%, food and clothing is 50-59%, well-off is 40-50%, rich is 30-40%, and the richest is below 30%.
/kloc-According to the statistical data, Engel, a German statistician in the 20th century, drew a rule about the change of consumption structure: the less the family income, the greater the proportion of family income (or total expenditure) spent on food, while with the increase of family income, the proportion of family income (or total expenditure) spent on food will decrease.
By extension, the poorer a country is, the greater the average income (or average expenditure) of each national is spent on food, and this proportion shows a downward trend with the prosperity of the country. That is, with the increase of family income, the proportion spent on food will decrease.
Knowledge expansion
Ernst Engel (1821-1896), a German economist and statistician, is a leading figure in the school of social statistics. Engel was born in Dresden, Saxony on March 2 182 1. 185 1 became the statistical director of Saxony and began his career as a government statistical official.
Because Engel led the statistical work in Saxony and Prussia for a long time, which lasted for more than 30 years, he had rich statistical practical experience and profound statistical theoretical knowledge, so he was famous in the German and international statistical circles at that time.