What is the Steller coefficient??? What is Sgel s Coefficient?

Engel's law and Engel's coefficient.

In the 19th century, the German statistician Engel drew a law on the change of consumption structure based on statistical data: the less income of a family, the greater the proportion of household income (or total expenditure) spent on food, and as the family income increases, the expenditure 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 (r1) —

Percentage change in total expenditure.

Or. Percentage change in food expenditure.

Ratio of food expenditure to income (r2) —

Percentage change in revenue.

R2 is also known as the income elasticity of food spending.

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.

In 1857, the world-famous German statistician Engel clarified a law: as the income of households and individuals increases, the proportion of income spent on food will gradually decrease, this law is called Engel's law, and the coefficient reflecting this law is called Engel's coefficient. Its formula is expressed as:

Engel's coefficient (%) = total food expenditure 100% of total household or personal consumption expenditure

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. As we all know, food is the first need for human survival, and when the income level is low, it must occupy an important position in consumer expenditure.

With the increase of income, when the demand for food is basically satisfied, the focus of consumption will begin to shift to other aspects such as clothing and use. Therefore, the poorer a country or family lives, the greater Engel's coefficient; Conversely, the richer the life, the smaller the Engel coefficient.

Internationally, the Engel coefficient is often used to measure the living standards of people in a country or region. 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. When using this standard in China to make international and urban-rural comparisons, it is necessary to take into account those incomparable factors, such as the difference in the price of consumer goods, the difference in residents' living habits, and the special factors caused by the difference in social and economic systems.

The non-comparability of these cross-sectional comparisons should be eliminated accordingly in the analysis and comparison. In addition, when observing changes in historical conditions, it should be noted that the Engel coefficient reflects a long-term trend, rather than an absolute tendency to decline year by year. It is to iron out short-term fluctuations to find long-term trends.

It's Engel's coefficient, which is simply a number of money spent on food than all your spending, the higher this number is, the higher your standard of living, and vice versa.

It is an important parameter that reflects people's living standards, similar to CPI and GDP, mainly refers to the proportion of family food expenditure in the family economy, such as a family earns 80,000 yuan a year, of which 40,000 are spent on eating, Engel's coefficient is, generally speaking, the larger the Engel coefficient, the poorer the family, such as Africa can be as high, while developed countries such as the United States only, this is the difference.

The Sgel 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.

Sgel's coefficient ——

The total amount spent.

Food, clothing, and flowers as a percentage of income.

Is it Engel's coefficient?