Income Elasticity

Japanese: 所得弾力性 - しょとくだんりょくせい

Income elasticity is an indicator that shows the percentage increase in expenditure on a certain expense item when income increases by 1%. Expenditure elasticity is an indicator that shows the percentage change in each good or service when consumer expenditure changes by 1%. Expenditure elasticity is calculated in the Household Budget Survey. Expenditure items with an expenditure elasticity of less than 1.00 are classified as basic expenditures (necessities), such as food, rent, utility bills, and health care services. Expenditure items with an expenditure elasticity of 1.00 or more are classified as optional expenditures (luxury goods), such as education expenses, durable goods for culture and entertainment, and monthly tuition fees.

(Kyoko Uemura, Professor at Tokyo Kasei Gakuin University / 2007)

Source : "Chiezo" published by Asahi Shimbun Publications Co., Ltd. About Chiezo

Japanese:

所得弾力性とは、所得が1%増加した時、ある費目の支出が何%増加するかを表した指標。支出弾力性とは、消費支出が1%変化した時、各財・サービスが何%変化するかを示した指標。家計調査では支出弾力性を計算している。支出弾力性が1.00未満の支出項目は基礎的支出(必需品)に分類され、食料、家賃、光熱費、保健医療サービスなどが該当。1.00以上の支出項目は選択的支出(贅沢品)に分類され、教育費、教養娯楽用耐久財、月謝などが該当。

(上村協子東京家政学院大学教授／ 2007年)

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