theoretical and empirical considerations according to ernst engel a pioneer in analyzing family budgets the poorer is greater pro portion of total outgo expenditure which much be used for food s most important finding known as law consumption states follow ing income increases on different items budget has changing proportions devoted urgent needs such decrease while those luxuries or semiluxu ries increase many analyses conclude that portions various groups com modities not only change with increasing stated but also vary systematically analysts consequently postulate given commodity varies accordance some underlying mathematical this observa tion leads estimate functions by employing variety functional forms express relationship between expendi tures surveys individual households generally provide information necessary study relationships commodities expressed terms quantities expenditures framework analyze
