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Simple Utility Functions with Giffen Demand

Sorensen, Peter Norman - 2008

We present some simple utility functions whose Marshallian demand functions possess the Giffen property: at some price-wealth pairs, the demand for a good marginally increases in response to an increase in its own price. The utility functions satisfy standard preference properties throughout the...

Persistent link: https://www.econbiz.de/10014064135

The delimitation of Giffenity for the Wold-Juréen (1953) utility function using relative prices : a note

Sproule, Robert A. - 2020

In the study of Giffen behavior or "Giffenity", there remains a paradox. On one hand, the Wold-Juréen (Demand analysis: A study in Econometrics, 1953) utility function has been touted as the progenitor of a multi-decade search for those two-good, particular utility functions, which exhibit...

Persistent link: https://www.econbiz.de/10012173780

The delimitation of Giffenity for the Wold-Juréen (1953) utility function using relative prices : a note

Sproule, Robert A. - 2020

In the study of Giffen behavior or "Giffenity", there remains a paradox. On the one hand, the Wold-Juréen (1953) utility function has been touted as the progenitor of a multi-decade search for those two-good, particular utility functions, which exhibit Giffenity. On the other hand, there is no...

Persistent link: https://www.econbiz.de/10012262330

A Refutation of the Characteristics Theory of Quality

Bowbrick, Peter - 2015

This thesis is a formal refutation of the characteristics approach to the economics of quality, which is particularly associated with Kelvin Lancaster. Many of the criticisms apply equally to other approaches to the economics of quality

Persistent link: https://www.econbiz.de/10013009881

Ordinal Utility Differences

Baccelli, Jean - 2023

It is widely held that under ordinal utility, utility differences are ill-defined. Allegedly, for these to be well-defined (without turning to choice under risk or the like), one should adopt as a new kind of primitive quaternary relations, instead of the traditional binary relations underlying...

Persistent link: https://www.econbiz.de/10014350299

Giffen Goods : A Common Phenomenon in Macro Economy & Explanation of Economic Crisis From A Microeconomic View

He, Yiping; Shi, Wei; Zhao, Gang; Gong, Xiaoming - 2011

The current study points out that the derivation of the aggregate demand curve based on theory of consumer behavior has … when the supply of the product falls short of demand. The current study proposed a new theory to prove the common existence … financial/economic crisis from a microeconomic prospective. Furthermore, the proposed theory provides a theoretical backup for …

Persistent link: https://www.econbiz.de/10014203372

An Intuitive Derivation of a Simple Giffen Good

Engström, Per - 2019

This brief paper describes an intuitive way to derive a utility function that produces a demand function with Giffen properties. The solution is surprisingly simple and the necessary algebra is suitable for introductory and intermediate microeconomics

Persistent link: https://www.econbiz.de/10012889439

Not all Giffen Goods, are Inferior Goods

Vallejo, Hernan - 2021

It is well known in the economic literature that the labor supply curve can bend backwards and, therefore, that leisure can be a Giffen good. It is also known that leisure can be a normal good. This article proves that if leisure is a Giffen good, it has to be a normal good. This result also...

Persistent link: https://www.econbiz.de/10013236872

Are the Outputs Derived from Secondary Materials Giffen Goods?

Di Vita, Giuseppe - 2011

In this paper we show that under double constraint the goods derived from secondary materials could be Giffen. The example is given of paper derived from waste recycling. We show that if the policy maker misunderstands the type of goods, because he incorrectly considers a Giffen good to be...

Persistent link: https://www.econbiz.de/10013124437

Prevention as a Giffen Good

Peter, Richard - 2021

A criterion is provided for prevention to be a Giffen good. Under decreasing absolute risk aversion, prevention can only be Giffen if the loss probability is below an endogenous threshold value. For iso-elastic utility, this is possible but not empirically plausible

Persistent link: https://www.econbiz.de/10013219527