The budget coefficient represents the proportion of a household’s income spent on the purchase of goods or a specific category of goods. Expenditure is divided into different categories such as clothing, transportation, food, etc. Each spending category is evaluated relative to total spending, which determines the budget coefficient. This coefficient is expressed as a percentage, and its evolution varies depending on the spending category. For example, the coefficient for housing is increasing, while that for food is decreasing.<\/p>\n\n\n\n
To illustrate, the French household’s budget coefficient for physical appearance was approximately 7.3% in 2015. The budget allocated to clothing purchases has remained stable since 1960 thanks to the emergence of ready-to-wear brands, thus helping to maintain stable prices. In another example, a household spends \u20ac1,000 per month, allocated as follows: rent \u20ac400, food and hygiene \u20ac300, healthcare \u20ac100, leisure and culture \u20ac100, and transportation \u20ac100. The housing budget coefficient represents 40% of total income (400\/1000 x 100).<\/p>\n\n\n\n
The budget coefficient is interpreted according to Engel’s Law, which states that this coefficient decreases with an increase in the standard of living. Indeed, an increase in income leads to a decrease in the budget coefficient for several expenditure categories, such as food, which is considered an inferior good due to its negative elasticity. In 2011, INSEE figures revealed the following budget coefficients for French households: food 13.6%, housing 25.3%, and transportation and communications 25.5%.<\/p>\n\n\n\n
The budget coefficient is an indicator used to analyze household purchasing habits, highlighting…<\/p>\n","protected":false},"template":"","categories-glossary":[310],"class_list":["post-161090","dictionnaire-dico","type-dictionnaire-dico","status-publish","hentry","categories-glossary-consumer-behavior-marketing-psychology"],"_links":{"self":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/dictionnaire-dico\/161090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/dictionnaire-dico"}],"about":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/types\/dictionnaire-dico"}],"wp:attachment":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/media?parent=161090"}],"wp:term":[{"taxonomy":"categories-glossary","embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/categories-glossary?post=161090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}