Luxury Good

Definition

Health Economics

  • An economic good with an income-elasticity greater than 1.0. Because the term has pejorative overtones and also because the elasticity condition defines as 'luxuries' many things (apparently including many forms of health care.) that are not generally regarded as luxuries, it is a term better avoided and 'good with an income elasticity greater than 1.0' used instead, which has the advantage of saying directly what the characteristic is that matters without overtones of approval or disapproval, importance or unimportance.
http://www.dictionarycentral.com/definition/luxury-good.html