Engel Expenditure Curves for Households in the Slovak Republic and Income Elasticity of Expenditure

Elena Hošková – Institute of Economics and Management, Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Tr. A. Hlinku č.2, 949 76 Nitra, Slovakia

Iveta Zentková – Institute of Economics and Management, Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Tr. A. Hlinku č.2, 949 76 Nitra, Slovakia

Abstract: The paper aims to investigate how household income in the Slo­vak Republic affects household expenditure on various goods and servic­es. The data are drawn from the Statistical Office of the Slovak Republic for the period 2005-2022. The impact of income on expenditure was quantified through Engel expenditure functions for 11 groups of goods and services. The results of the regression analysis indicated that expenditure on all the goods and services under study increased with the increase in income. In­come elasticities of expenditure indicated that the expenditure of a house­hold with two children was the most elastic to a change in income. For ex­ample, the income elasticities of expenditure for transport and post and tel­ecommunications were 1.791 and 1.2 respectively. The Engel curves for these goods converge to line 45. Expenditure trends for households with three or more children could be explained by income only for some goods and ser­vices. In general, these households also responded less elastically to chang­es in income compared to other households.

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9th International Scientific-Business Conference – LIMEN 2023 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – SELECTED PAPERS, Hybrid (Graz University of Technology, Graz, Austria), December 7, 2023

LIMEN Selected papers published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia

LIMEN Conference 2023 Selected papers: ISBN 978-86-80194-79-0, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.S.P.2023

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