The Application Deficiency and its Reason of Engle Coefficient in China

Engle Coefficient is the rate of food expenditure in gross expenditure of family consumption. It is used to measure the poor and rich degrees of a family or an area or a country. But now Engle Coefficient's application has some deficiency in China. The main ransoms are as follows: the households' level of mean food consumption, the household's habit of consumption, social welfare policy, and the prices of consumption goods.