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On The History and The Mathematics of The Wold-Juréen (1953) Utility Function, And Its Basis For The Modeling of Giffen Behavior

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  • Sproule, Robert

Abstract

Twenty years ago, Peter Moffatt (2002) posed this general question: “Is Giffen behavior compatible with the axioms of consumer theory?” The present paper addresses this very same question, but only as it applies to the Wold-Juréen (1953) utility function. In this paper, we demonstrate that the Wold-Juréen (1953) utility function exhibits both Giffenity and compatibility with the axioms of consumer theory. Our singular interest in the Wold-Juréen (1953) utility function stems from the fact that this utility function continues to be the preeminent theoretical benchmark in the study of Giffenity.

Suggested Citation

  • Sproule, Robert, 2022. "On The History and The Mathematics of The Wold-Juréen (1953) Utility Function, And Its Basis For The Modeling of Giffen Behavior," EconStor Preprints 263912, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:263912
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    File URL: https://www.econstor.eu/bitstream/10419/263912/1/RAS-2022-09-02-Moffatt-2002.pdf
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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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wold-Juréen (1953) utility function; Slutsky decomposition; Giffen Behavior; Axioms of Consumer Theory;
    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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