Premium
FOCUSING THE SEARCH FOR GIFFEN BEHAVIOR
Author(s) -
Johnston Richard S.,
Larson Douglas M.
Publication year - 1994
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1994.tb01320.x
Subject(s) - economics , constraint (computer aided design) , consumption (sociology) , set (abstract data type) , microeconomics , mathematical economics , mathematics , computer science , philosophy , geometry , programming language , aesthetics
A recent paper by Otis Gilley and Gordon Karels showed that Giffen behavior can result from a rationing constraint which provides a second, lower bound to consumption. This model provides a far wider set of possibilities for uncovering Giffen behavior empirically than simply among the poor with limited consumption choices among a few staple items. Giffen behavior of this type can equally well result from the interaction of two binding upper constraints to the consumer's choice set. This is demonstrated with a consumer who experiences local satiation, the antithesis of the usual setting where Giffen goods are thought possible.