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Engel's Coefficient is the proportion of total food expenditure to total personal consumption expenditure. In the 19th century, German statistician Engel derived a rule on changes in consumption structure based on statistical data: the less a family's income, the greater the proportion of household income (or total expenditure) used to buy food. As household income increases, the proportion of household income (or total expenditure) used to buy food decreases. By extension, the poorer a country is, the greater the proportion of the average income (or average expenditure) of each national for food purchases. As the country gets richer, this proportion shows a downward trend.

The Engel coefficient is based on
It can be seen from the figure that under the condition that the total expenditure amount is unchanged, the larger the Engel coefficient,
When using the Engel coefficient:
One is that the Engel coefficient is a long-term trend
It is of great significance to reduce the Engel coefficient. In view of this, some experts have made the following suggestions:
Speeding up economic development and increasing the income levels of urban and rural residents are the most important means of reducing the Engel coefficient.
The lower the Engel coefficient, the richer the residents. On the contrary, accelerating economic development, greatly increasing the income level of urban and rural residents directly promotes the decline of the Engel coefficient, and the income level of urban and rural residents has increased, which will inevitably increase the level of living consumption. Under the premise of ensuring food demand, the increased consumption expenditure of urban and rural residents will inevitably be invested in non-food consumption, which can improve clothing levels, improve living conditions, buy durable consumer goods to improve quality of life, and use it to improve their quality in education and learning. You can go out to broaden your horizons and increase your knowledge. In short, the more the non-food consumption expenditure increases, the lower the Engel coefficient. Conversely, if the income of urban and rural residents is not growing fast and there is no additional economic income to increase non-food consumption expenditure, the Engel coefficient will inevitably decline slowly. For those who are below the food and clothing line, after achieving free medical care for the whole people, medical expenses will be greatly reduced, life will be improved, food expenses will be increased, the Engel coefficient will be correspondingly increased, and the happiness index will be greatly increased.
Speed up the construction of food projects and curb the rise in food prices
Rising food prices will inevitably lead to an increase in food consumption expenditures. Under the condition of constant income, urban and rural residents will inevitably reduce non-food consumption expenditures, causing the Engel coefficient to rebound and rise. If food prices increase rapidly, it will inevitably increase the people's living burden, reduce their living standards in disguise, cause people's emotional fluctuations, and directly affect social stability in severe cases. The Engel coefficient will also rise significantly.
Increase publicity and guide reasonable consumption
Some people have such a life concept that "eating is real merit". With this concept, you must pay attention to eating, overeating every day, excessive food intake, increasing food consumption expenditure, and raising the Engel coefficient; if the food intake is too high, Paying attention to physical exercise will inevitably lead to obesity and sometimes hidden dangers of the disease. At present, some diseases are called "rich and noble diseases", which are caused by overeating and overeating. Therefore, it is necessary to guide residents' reasonable consumption. With the guarantee of normal food needs, the majority of residents will form a reasonable diet structure and develop good eating habits, which is both economical and beneficial to the body. At the same time, governments and departments at all levels strictly control the phenomenon of eating and drinking from public funds. On the one hand, it saves funds and establishes a clean and honest image, and on the other hand it sets an example of good eating habits for the general public. [4]
The Engel coefficient is often used internationally to measure the living standards of people in a country and region.
Figure 5 Engel coefficient statistics
situation. According to the standards proposed by the Food and Agriculture Organization of the United Nations, the Engel coefficient is above 59% for poverty, 50-59% for food and clothing, 40-50% for well-off, 30-40% for wealth, and less than 30% for the richest. When China uses this standard for international and urban comparisons, it is necessary to consider those incomparable factors, such as different prices of consumer goods, differences in residents' living habits, and special factors caused by different socio-economic systems. For the incomparable problems in these cross-section comparisons, corresponding analysis should be eliminated during analysis and comparison. In addition, when observing changes in historical conditions, it should be noted that the Engel coefficient reflects a long-term trend, not an absolute tendency to decrease year by year. It seeks long-term trends in ironing short-term fluctuations. [4]

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