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The Anomalies Of The Wold-Juréen (1953) Functional Form In Overview

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  • Sproule, Robert

Abstract

Both the Wold-Juréen (1953) utility function and the Wold-Juréen (1953) production function have played a central role in the modelling and the analysis of the Giffen behavior. Using an amalgam of these two functions, this paper defines the Wold-Juréen (1953) functional form, and then compares its properties to the properties of the arbitrary functional form, in an effort to provide a global perspective on the unique nature of the Wold-Juréen (1953) functional form. This paper then reports: (a) that the domain of the Wold-Juréen (1953) functional form (or the first functional form) is a subset of the domain of the arbitrary functional form (or the second functional form), (b) that the signs of the second derivatives of the Wold-Juréen (1953) functional form (or the first functional form) are the opposite of the signs of the second derivatives of the arbitrary functional form (or the second functional form), and (c) that (within the context of the unconstrained-maximization problem) the Wold-Juréen (1953) functional form (or the first functional form) is not concave, whereas the arbitrary functional form (or the second functional form) is concave.

Suggested Citation

  • Sproule, Robert, 2023. "The Anomalies Of The Wold-Juréen (1953) Functional Form In Overview," MPRA Paper 117835, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117835
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    References listed on IDEAS

    as
    1. Sproule, Robert, 2015. "An argument for the use of the square-root functional form in teaching undergraduate microeconomics," International Review of Economics Education, Elsevier, vol. 20(C), pages 37-45.
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    6. Robert SPROULE & Michael KARRAS, 2022. "Two conditions which induce Giffen behavior in any numerical analysis if applied to the Wold-Juréen (1953) utility function," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(633), W), pages 197-204, Winter.
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    9. Sproule, Robert & Karras, Michael, 2022. "In Search of A Giffen Input: A Comprehensive Analysis of The Wold-Juréen (1953) Production Function," MPRA Paper 113007, University Library of Munich, Germany.
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    More about this item

    Keywords

    Wold-Juréen (1953) functional form; Arbitrary functional form; Giffen behavior; Consumer theory; Producer 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
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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