Proceedings of the 2013 International Academic Workshop on Social Science

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

Authors
Yaozhong Chang
Corresponding Author
Yaozhong Chang
Available Online October 2013.
DOI
https://doi.org/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.
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Proceedings
International Academic Workshop on Social Science (IAW-SC-13)
Part of series
Advances in Intelligent Systems Research
Publication Date
October 2013
ISBN
978-90-78677-84-0
ISSN
1951-6851
DOI
https://doi.org/10.2991/iaw-sc.2013.79How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

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  - International Academic Workshop on Social Science (IAW-SC-13)
PB  - Atlantis Press
SN  - 1951-6851
UR  - https://doi.org/10.2991/iaw-sc.2013.79
DO  - https://doi.org/10.2991/iaw-sc.2013.79
ID  - Chang2013/10
ER  -