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Peng's Coefficient

Peng’s Coefficient is an economic term which refers to the proportion of an individual’s spending on culture- and spirit-related products or services, such as books, movie, opera, concert, travelling, training and so forth, to her/his total expenditure. Peng’s Coefficient is inversely proportional to Engel’s Coefficient, because the more proportion people spend on food, the less proportion on culture and spirit. The concept was named after its creator Peng Bing from China.

Equation: P=S/T (P refers to Peng’s Coeffient, S refers to culture and spirit-related spending, T refers to total expenditure)



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