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The cross-country Engel curve for product diversification


Falkinger, Josef; Zweimüller, Josef (1996). The cross-country Engel curve for product diversification. Structural Change and Economic Dynamics, 7(1):79-97.

Abstract

This paper employs ICP expenditure data to investigate the relationship between income and product diversity. It turns out that per-capita income has a strong positive impact on the number of products consumed at a non-negligible level in a country, and a significant negative impact on the concentration of consumers' expenditure across different goods categories. Inequality in the size distribution of incomes has a significant positive impact on the number of consumed goods, but no clear effect on the concentration of expenditure.

Abstract

This paper employs ICP expenditure data to investigate the relationship between income and product diversity. It turns out that per-capita income has a strong positive impact on the number of products consumed at a non-negligible level in a country, and a significant negative impact on the concentration of consumers' expenditure across different goods categories. Inequality in the size distribution of incomes has a significant positive impact on the number of consumed goods, but no clear effect on the concentration of expenditure.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Date:1996
Deposited On:04 Oct 2013 13:33
Last Modified:05 Apr 2016 17:01
ISSN:0954349X
Publisher DOI:https://doi.org/10.1016/0954-349X(95)00039-P

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