Econometrica: Oct 1960, Volume 28, Issue 4
On a Method of Computing Engel Elasticities from Concentration Curves
N. Sreenivasa IyengarExpenditure elasticities are generally obtained by assuming certain forms such as the semi-log, double-log or probit relation for the Engel curves and then estimating them from family budget data by the conventional method of least squares. This procedure is by no means the best, particularly when grouped data are available. In this paper an alternative method is proposed for estimating the Engel elasticities from two types of concentration curves which together describes on an average the consumption pattern of the community.
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