An empirical test on character of indifference curve of cross-layer goods under condition of low income

DOI

10.2991/iaw-sc.2013.79How to use a DOI?

Keywords

indifference curve; consumption bundle; income expansion path; Hierarchy of needs

Abstract

In Goods’ indifference curve, income expansion path represents optimized consumption bundle under different income level, the character of which under low income has research gaps. By econometric method of Chow test for predictive failure, consumption payouts of three need layers for four income grades in towns in Tibet are analyzed. Statistics description and econometric result indicate that under condition of low consumption expenditure per capita, goods belonging to lower need layer will be developed earlier than goods belonging to higher need layer for the former’s higher priority. This result shows that under condition of low income, higher layer goods toward which income expansion path is curved may increase much more slowly than that of lower layer goods with rise of total payout.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yaozhong Chang
PY  - 2013/10
DA  - 2013/10
TI  - An empirical test on character of indifference curve of cross-layer goods under condition of low income
BT  - Proceedings of the 2013 International Academic Workshop on Social Science
PB  - Atlantis Press
SP  - 366
EP  - 369
SN  - 1951-6851
UR  - https://doi.org/10.2991/iaw-sc.2013.79
DO  - 10.2991/iaw-sc.2013.79
ID  - Chang2013/10
ER  -