Authors: S. Pivac, M. Zoric, I. Eskinja
Addresses: Faculty of Economics Split, University of Split, Matice Hrvatske 31, Split, 21000, Croatia. ' Faculty of Economics Split, University of Split, Matice Hrvatske 31, Split, 21000, Croatia. ' Faculty of Law Rijeka, University of Rijeka, Hahlic 6, Rijeka, 51000, Croatia
Abstract: Engel|s Laws have been frequently used in economic analysis. In this paper, the concrete relations in Croatian economy are studied according to basic postulates of Engel curve. The parameters of relevant model are estimated by respecting wages movement and luxury consumption. Beside standard method, parameters estimation has also been done by Monte Carlo simulation, which enables the basic assumptions to be fulfilled. By using such multi-objective approach, the obtained results have been presented, interpreted and comparatively analysed. All calculations are accomplished very simply in Excel. This user-friendly approach will help many users to easily solve similar complex statistical and mathematical calculations, which is useful and important for students of economic sciences in quantitative analysis.
Keywords: Engel|s Law; regression analysis; Monte Carlo simulation; MCS; comparative parameter estimation; Croatia; economic analysis; wages movement; luxury consumption; economics.
International Journal of Intelligent Defence Support Systems, 2010 Vol.3 No.1/2, pp.66 - 77
Published online: 15 Jun 2010 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article