The Prediction of Engel's Coefficient and Education Expenditure Based on the Linear Regression Model for Heilongjiang and Ontario

Abstract

It is meaningful to study trends in food and education expenditure as proportions of total household expenditure. In this study, based on year 2006 to 2017 data from Heilongjiang province in China and Ontario province in Canada, a linear regression model is used to forecast the Engel’s coefficients (proportion spent on food) and the education proportion from year 2018 to 2027 for those two regions. The results suggest that in both regions the Engel’s coefficients show a decreasing trend, while the education expenditure proportions show an increasing trend. The ratios of education expenditure to food expenditure in both places show an increasing trend.