New Insights into the Theory of Giffen Goods

Online-Ressource (XII, 171p. 35 illus, digital)

Lecture Notes in Economics and Mathematical Systems ; 655

Includes bibliographical references

New Insights into the Theory of Giffen Goods; Preface; Contents; Contributors; Introduction; Notes on Some Theories of Giffen Behaviour; 1 Introduction; 2 The Standard Problem; 3 The Case of an Additional Constraint; 4 Endogenous Income; 5 Final Remarks; References; Exact and Useful Optimization Methods for Microeconomics; 1 Introduction; 2 Customized Optimality Results for Microeconomics; 3 Testing for Operational Usefulness; Appendix; References; On the Definitions of Giffen and Inferior Goods; 1 Introduction; 2 Setting; 3 Definition of Giffen and Inferior Goods

4 Each Giffen Good Is Inferior5 Non-decreasing Demand Functions That Are Nowhere Strictly Increasing; References; Giffen Behaviour and Strong Asymmetric Gross Substitutability; 1 Introduction; 2 Derivation of Necessary Conditions; 2.1 Unequal Income Elasticities: Weak Asymmetric Income Elasticity; 2.2 Inferior Good/Luxury: Strong Asymmetric Income Elasticity; 2.3 Unequal Gross Cross-Price Effects: Weak Asymmetric Gross Substitutability; 2.4 Good 1 Gross Substitute for Good 2, Good 2 Gross Complement to Good 1: Strong Asymmetric Gross Substitutability; 2.5 Strong Asymmetric Price Elasticity

3 Relation Between Necessary Conditions4 Discussion; References; A Child Garden of Concrete Giffen Utility Functions: A Theoretical Review; 1 Introduction; 2 Setting; 3 Text Book Giffen Problem; 4 Weak Giffen Problem; 5 Strong Giffen Problem; 6 Inferiority Problems; Appendix; Proof of Example 1; Proof of Example 2; Proof of Example 3; Proof of Example 4; Proof of Example 5; References; On Giffen's Paradox; 1 Giffen's Paradox; 2 Indifference Map; 3 Demand Functions: Determination; 4 Demand Functions: Giffen's Paradox; 5 Giffen's Paradox and Offer Curves; 6 Revisiting the Indifference Map

Giffen Demand for Several Goods1 Introduction; 2 Utility; 3 Demand; 4 Example; 5 Converse; References; Giffen Behavior Independent of the Wealth Level; 1 Introduction; 2 Utility Function; 2.1 Definition and the Main Assumption; 2.2 Properties; 3 Derivation of the Demand Function; 3.1 Utility Maximization Problem; 3.2 Type I Budget Constraint; 3.3 Type II Budget Constraint; 3.4 First Main Proposition; 4 Properties of the Demand Functions; 4.1 Comparative Statics; 4.1.1 Price Effects; 4.1.2 Income Effects; 4.1.3 Diagrammatic Explanation of the Comparative Static Analysis

4.1.4 Income Expansion Path and Price Offer Curve4.1.5 Independence of Giffen Behavior from Living Standard; 4.1.6 Expenditure Share on a Giffen Good; 5 Possible Generalizations; 6 Concluding Remarks; References; A Class of Indirect Utility Functions Predicting Giffen Behaviour; 1 Introduction; 2 The Indirect Utility Function; 3 Roy's Identity: A Geometric Interpretation; 4 Construction of an IUF Exhibiting Giffenity; 4.1 Construction of a Family of Indifference Curves in Price-Space; 4.2 Further Considerations; 4.3 The IUF in Explicit Form; 4.4 Marshallian Demands

5 A Direct Utility Function Exhibiting Giffenity

10.1007/978-3-642-21777-7 [DOI]

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