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What's in the budget? An economic study of Swedish household consumption

Grönkvist Albinsson, Joel LU (2025) EOSK12 20251
Department of Economic History
Abstract (Swedish)
This thesis examines how income affects household consumption in Sweden between 1999 and 2009. Using data from SCB, the study explores how people with different income levels spend their money on various goods and services. The analysis is based on Engel’s law, which suggests that as income increases, the share of spending on basic needs like food goes down, while spending on non-essential or luxury items goes up.
The study finds that some goods, such as housing and communication, are necessities, people spend on them regardless of income. Other goods, like recreation, transport, and furniture, are more common among higher-income households and are classified as luxuries. The results also show that even the lowest income groups in Sweden... (More)
This thesis examines how income affects household consumption in Sweden between 1999 and 2009. Using data from SCB, the study explores how people with different income levels spend their money on various goods and services. The analysis is based on Engel’s law, which suggests that as income increases, the share of spending on basic needs like food goes down, while spending on non-essential or luxury items goes up.
The study finds that some goods, such as housing and communication, are necessities, people spend on them regardless of income. Other goods, like recreation, transport, and furniture, are more common among higher-income households and are classified as luxuries. The results also show that even the lowest income groups in Sweden spend money on more than just basic needs, which reflects the country’s overall high standard of living.
Over time, changes in prices also affected how households spent their money, especially on food and housing. While Engel’s law generally holds true, the findings suggest that factors like household size, quality preferences, and price changes also play a role in shaping consumption patterns. (Less)
Please use this url to cite or link to this publication:
author
Grönkvist Albinsson, Joel LU
supervisor
organization
course
EOSK12 20251
year
type
M2 - Bachelor Degree
subject
language
English
id
9199289
date added to LUP
2025-06-16 11:37:57
date last changed
2025-06-16 11:37:57
@misc{9199289,
  abstract     = {{This thesis examines how income affects household consumption in Sweden between 1999 and 2009. Using data from SCB, the study explores how people with different income levels spend their money on various goods and services. The analysis is based on Engel’s law, which suggests that as income increases, the share of spending on basic needs like food goes down, while spending on non-essential or luxury items goes up. 
The study finds that some goods, such as housing and communication, are necessities, people spend on them regardless of income. Other goods, like recreation, transport, and furniture, are more common among higher-income households and are classified as luxuries. The results also show that even the lowest income groups in Sweden spend money on more than just basic needs, which reflects the country’s overall high standard of living. 
Over time, changes in prices also affected how households spent their money, especially on food and housing. While Engel’s law generally holds true, the findings suggest that factors like household size, quality preferences, and price changes also play a role in shaping consumption patterns.}},
  author       = {{Grönkvist Albinsson, Joel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{What's in the budget? An economic study of Swedish household consumption}},
  year         = {{2025}},
}