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A Precondition-Free Demonstration That the Wold-Juréen (1953) Utility Function (Always) Generates a Giffen Good

Author

Listed:
  • Sproule, Robert
  • Karras, Michael

Abstract

Both Weber (1997) and Sproule (2020) offered a precondition for the existence of Giffenity when the decision maker's utility function is the Wold-Juréen (1953) utility function. The purpose of this paper is to show that all preconditions (including those due to Weber (1997) and Sproule (2020)) are superfluous, in the present demonstration that the inferior good in the Wold-Juréen (1953) utility function is also a Giffen good. Our success relies upon our use of both of the Marshallian demand functions, rather than just one, as is the case in both Weber (1997) and Sproule (2020). In brief, the present paper offers a precondition-free demonstration that the Wold-Juréen (1953) utility function will (always) generate a Giffen good.

Suggested Citation

  • Sproule, Robert & Karras, Michael, 2022. "A Precondition-Free Demonstration That the Wold-Juréen (1953) Utility Function (Always) Generates a Giffen Good," MPRA Paper 113005, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113005
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    References listed on IDEAS

    as
    1. Sproule, Robert A., 2020. "The delimitation of Giffenity for the Wold-Juréen (1953) utility function using relative prices: A note," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-8.
    2. Christian E. Weber, 1997. "The Case of a Giffen Good: Comment," The Journal of Economic Education, Taylor & Francis Journals, vol. 28(1), pages 36-44, March.
    3. Robert T. Jensen & Nolan H. Miller, 2008. "Giffen Behavior and Subsistence Consumption," American Economic Review, American Economic Association, vol. 98(4), pages 1553-1577, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Slutsky decomposition; Giffen Good; Wold-Juréen (1953) utility function; pedagogy.;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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