How should I calculate elasticity by using excel?

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I want to calculate elasticity of expenditure (by households) in education
with respect to increase in income. Pls help me. I have huge data set from
household survey
Yam
 
This is one of those cases in which I kind of go out on a limb for the
poster. Since its the 17th and nobody has come to your rescue yet, I think I
can safely presume one or more of the following are true. One, this
community is as baffled as I am about what Elasticity of Expenditure IS, in
which case you probably want to provide us with a mathematical relationship
to work from. Two, you may have implied a question, but it was too ambiguous
for a ready answer. Or three, you might have inadvertently asked the wrong
group, realized your mistake, and won't read this anyway. If the latter is
not true, please think your scenario through more thoroughly and ask a
pertinent question. Use this as a guide: what is the nature of your data,
and what specifically do you want Excel to do with that data? I don't
profess to speak for the group, but for me, I'd truly like to help you but
have no clue what you are talking about.
 
JoAnn said:
Elasticity of Expenditures sounds like making your money stretch to fit your expenses. :-)
Click to expand...

Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .
 
I could have but I have enough to remember about the parts of a Bradley A3
armored personnel carrier without fussing about terminology that I have no
need for at this point in my life. Should that change, I know how to look it
up.

And I still like my definition.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375
 
Does that Bradley fit in your garage?
<gd&r>

JoAnn Paules said:
I could have but I have enough to remember about the parts of a Bradley A3
armored personnel carrier without fussing about terminology that I have no
need for at this point in my life. Should that change, I know how to look it
up.

And I still like my definition.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375

Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .
Click to expand...
Click to expand...
 
JoAnn said:
I could have but I have enough to remember about the parts of a Bradley A3
armored personnel carrier without fussing about terminology that I have no
need for at this point in my life. Should that change, I know how to look it
up. And I still like my definition.
[....]
MVP Microsoft [Publisher]
Click to expand...

And I'm sure the OP really appreciated your constructive input, coming
from an "MVP" and all ;-).
 
As long as I keep the ramp up, TOW missile launcher folded, and make sure
the 25mm gun is pointed directly ahead, yes.


--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375




Dave Peterson said:
Does that Bradley fit in your garage?
<gd&r>

JoAnn Paules said:
I could have but I have enough to remember about the parts of a Bradley
A3
armored personnel carrier without fussing about terminology that I have
no
need for at this point in my life. Should that change, I know how to look
it
up.

And I still like my definition.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375

JoAnn Paules [MVP] wrote:
Elasticity of Expenditures sounds like making your money stretch to
fit
your expenses. :-)

Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .
Click to expand...
Click to expand...
Click to expand...
 
I'm kind of glad I don't live in your neighborhood. If I cut you off, my little
car might not protect me much!

JoAnn Paules said:
As long as I keep the ramp up, TOW missile launcher folded, and make sure
the 25mm gun is pointed directly ahead, yes.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375

Dave Peterson said:
Does that Bradley fit in your garage?
<gd&r>

JoAnn Paules said:
I could have but I have enough to remember about the parts of a Bradley
A3
armored personnel carrier without fussing about terminology that I have
no
need for at this point in my life. Should that change, I know how to look
it
up.

And I still like my definition.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375

JoAnn Paules [MVP] wrote:
Elasticity of Expenditures sounds like making your money stretch to
fit
your expenses. :-)

Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .
Click to expand...
Click to expand...
Click to expand...
 
The condo association makes me leave the shoes on the tracks, otherwise it
chews up the macadam. ;-)

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375




Dave Peterson said:
I'm kind of glad I don't live in your neighborhood. If I cut you off, my
little
car might not protect me much!

JoAnn Paules said:
As long as I keep the ramp up, TOW missile launcher folded, and make sure
the 25mm gun is pointed directly ahead, yes.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375

Dave Peterson said:
Does that Bradley fit in your garage?
<gd&r>

:

I could have but I have enough to remember about the parts of a
Bradley
A3
armored personnel carrier without fussing about terminology that I
have
no
need for at this point in my life. Should that change, I know how to
look
it
up.

And I still like my definition.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375

JoAnn Paules [MVP] wrote:
Elasticity of Expenditures sounds like making your money stretch to
fit
your expenses. :-)

Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage
change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .
Click to expand...
Click to expand...
Click to expand...
 
Basically, it is a measure of the responsiveness in the quantity demanded of
a commodity (education) at any point on the Engel curve due to a change in
income (and assumes that all factors affecting the income demand for
education remain constant). But, IMO, I don't think a definition is really
of much help - perhaps he is looking for the formula?

The OP did not give any cell references for his data, but the income
elasticity can be measured by:

â–²Q/Q
_______

â–²I/I


or

(Q2 - Q1) I1
________ x ____
(I2 - I1) Q1

which gives you the Income Elasticity Coefficient for education between two
data points (Q being quantity demanded for education and I being Income).

Generally, negative coefficients refer to inferior goods and positive to
normal goods (for that particular income level). Some folks believe it can
be further broken down as:
E< 0 - Inferior Good
0 < E < 1 - Necessity
E > 1 - Luxury

but those are just general guidelines.
 
I like your definition too! Now if I could just figure out how to implement
it...:-)
Y


JoAnn Paules said:
I could have but I have enough to remember about the parts of a Bradley A3
armored personnel carrier without fussing about terminology that I have no
need for at this point in my life. Should that change, I know how to look it
up.

And I still like my definition.

--

JoAnn Paules
MVP Microsoft [Publisher]

~~~~~
How to ask a question
http://support.microsoft.com/KB/555375




Or you could take 5 sec to do a google search and get a reasonable
understanding. I found the following definition:

"In economics, elasticity is the ratio of the incremental percentage
change in one variable with respect to an incremental percentage change
in another variable. Elasticity is usually expressed as a positive
number (i.e., an absolute value) when the sign is already clear from
context." See en.wikipedia.org/wiki/Elasticity_(economics) .
Click to expand...
Click to expand...
 
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