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The Mechanism of Giffen Behaviour

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  • Zhu, Drew

Abstract

The law of demand might have no exception and the Giffen behavior should be one of the standard forms of the law. According to the new attribute theory and semi-empirical simulation method, Giffen behavior is verified in a general equilibrium framework using the data of food consumption in rural China. The superior food and the wealthy households with high preference for taste have higher possibility than the inferior food and low income households in exhibiting Giffen property. Therefore, to find empirical Giffen behavior, we should focus on the superior food and wealthy households with high preference for taste.

Suggested Citation

  • Zhu, Drew, 2016. "The Mechanism of Giffen Behaviour," MPRA Paper 75707, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75707
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Law of demand; New attribute theory; Giffen behavior;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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