How do you say Engel s coefficient in English and what does Engel s coefficient mean?

ENGEL index

In the 19th century, the German statistician Engel drew a law on the changes in consumption structure based on statistical data: the lower the income of a family, the greater the proportion of household income (or total expenditure) spent on food; As household income increases, the amount of money spent on food in household income (or total expenditure) decreases. By extension, the poorer a country is, the greater the proportion of per citizen's average income (or average expenditure) spent on food, and this proportion tends to decline as the country becomes richer.

The formula for Engel's law:

Percentage change in food expenditure.

Ratio of food expenditure to total expenditure ——

Percentage change in total expenditure.

Engel's law is based on empirical data, and it is applied on the assumption that all other variables are constants, so when examining changes in the proportion of food expenditure in income, it should also be considered that factors such as the degree of urbanization, food processing, the catering industry, and changes in the structure of food itself will affect the increase in household food expenditure. It is only when a fairly high average level of food consumption is reached that a further increase in income does not have a significant impact on food expenditure.

Engel's coefficient is a proportional number derived from Engel's law, which is an indicator of the level of living standards. It is calculated as follows:

The amount of food spending.

Engel's coefficient ——

The total amount spent.

In addition to food expenditure, the proportion of expenditure on clothing, housing, daily necessities, etc., has also been decreasing after a period of increase in household income or total expenditure.

Engel's coefficient is called brainstorming the amount of food spent.

It is calculated as follows: Engel's coefficient ——

The total amount spent.

According to the criteria proposed by the Food and Agriculture Organization of the United Nations, an Engel coefficient above 59% is considered poor, 50-59% is subsistence and clothing, 40-50% is moderately well-off, 30-40% is rich, and less than 30% is the richest.

There are so many people with knowledge, I just saw this thing today, but I don't know what it does for us ordinary people.

Engel's coefficient is the proportion of total food expenditure to total personal consumption expenditure, which is a popular concern in recent years, generally reflecting the level of living standards, and the Engel coefficient is generally higher in developed countries.

1.It is recommended that you pay more attention to your own life and improve the Engel coefficient.

2.Live seriously, be kind to yourself, eat and drink well.

3.Work hard and enjoy a good life.

Extended Materials. 1.Engel's coefficient is the number of proportions obtained according to Engel's law.

In the middle of the 19th century, the German statistician and economist Engel investigated the consumption of Belgian households with different incomes, studied the impact of income growth on the composition of consumption demand and expenditure, and proposed a regular principle, that is, Engel's law. .The main point is that the smaller the household or individual income, the greater the proportion of the household or individual income spent on subsistence food.

For a country, the poorer a country is, the greater the proportion of the average expenditure per citizen on food. The Engel coefficient is ultimately determined by the share of food expenditure in total expenditure. An Engel coefficient of more than 59 percent is considered poor, 50 to 59 percent is food and clothing, 40 to 50 percent is moderately well-off, 30 to 40 percent is rich, and less than 30 percent is the richest.

2.The formula for Engel's law:

Percentage change in food expenditure Percentage change in total expenditure x 100% = proportion of food expenditure to total expenditure (r1).

or % change in food expenditure % change in income x 100% = ratio of food expenditure to income (r2).

Note: R2 is also known as the income elasticity of food spending. Engel's law is based on empirical data.

It only applies to the premise that all other variables are constants. Therefore, when examining the change of the proportion of food expenditure in income, the influence of factors such as urbanization degree, food processing, catering industry, and food structure changes on the growth of household food expenditure should also be considered. Only when the average level of food consumption is high will a further increase in income not have a significant impact on food expenditure.

Engel's coefficient is a proportional number obtained according to Engel's law, which is an indicator that reflects the level of living standards. The formula is as follows: Engel's coefficient:

Food Expenditure Total Expenditure x 100% = Engel Coefficient In addition to food expenditure, the proportion of clothing, housing, daily necessities and other expenditures in the growth of household income or total expenditure has also shown a downward trend after a period of growth. Engel's coefficient is an important indicator commonly used in the world to measure the living standard of residents.

Engel's coefficient (ENGEL's coefficient) is the share of total food expenditure to total personal consumption expenditure. In the 19th century, the German statistician Engel drew a law on the changes in consumption structure based on statistical data: the less a household income, the greater the proportion of household income (or total expenditure) spent on food, and as the household income increases, the proportion of household income (or total expenditure) spent on food will decrease.

By extension, the poorer a country is, the greater the proportion of per citizen's average income (or average expenditure) spent on food, and this proportion tends to decline as the country becomes richer.

What does Engel's coefficient mean? It turns out that the ancients have already explained it, and you will know it after reading it.

Engel's coefficient (ENGEL's coefficient) refers to the proportion of total food expenditure to total personal consumption expenditure. It is a proportional number derived from Engel's law.

1. Overview of Engel's coefficient.

Engel's coefficient is one of the main criteria for measuring the affluence of a family or a country.

In general, all other things being equal, a higher Engel coefficient indicates a lower income as a household and a poorer country as a country. Conversely, a lower Engel coefficient indicates a higher income as a household and a richer country as a country. The larger Engel's coefficient, the poorer a country or family lives; Conversely, the smaller the Engel coefficient, the richer life becomes.

2. Engel's coefficient formula.

Engel's coefficient = amount of food expenditure Total amount spent x 100%.

3. Engel's law.

1) Concept. Engel's law mainly expresses a certain trend in the proportion of food expenditure in total consumption expenditure with the change of income. The correlation between household income and food expenditure is revealed, and the proportion of food expenditure to total consumption expenditure is used to illustrate the impact of economic development and income increase on living consumption.

2) Law formulas.

Percentage change in food expenditure Percentage change in total expenditure x 100% = ratio of food expenditure to total expenditure (r1).

or % change in food expenditure % change in income x 100% = ratio of food expenditure to income (r2).