IDEAS home Printed from
   My bibliography  Save this paper

A Class of Indirect Utility Functions Predicting Giffen Behaviour


  • Peter Moffatt

    () (School of Economics, University of East Anglia)


The problem of recognising Giffen behaviour is approached from the standpoint of the Indirect Utility Function (IUF) from which the marshallian demands are easily obtained via Roy's identity. It is shown that, for the two-good situation, downward convergence of the contours of the IUF is necessary for giffenity, and suffcient if this downward convergence is strong enough, in a sense that is geometrically determined. A family of IUFs involving hyperbolic contours convex to the origin, and having this property of (locally) downward convergence is constructed. The marshallian demands are obtained, and the region of Giffen behaviour determined. For this family, such regions exist for each good, and are non-overlapping. Finally, it is shown by geometric construction that the family of Direct Utility Functions having the same pattern of hyperbolic contours also exhibits giffenity in corresponding subregions of the positive quadrant.

Suggested Citation

  • Peter Moffatt, 2010. "A Class of Indirect Utility Functions Predicting Giffen Behaviour," University of East Anglia Applied and Financial Economics Working Paper Series 013, School of Economics, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:aepppr:2010_13

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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.
    2. Weber, Christian E, 2001. "A Production Function with an Inferior Input: Comment," Manchester School, University of Manchester, vol. 69(6), pages 616-622, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uea:aepppr:2010_13. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Theodore Turocy) or (H├ęctor Pastori). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.