Two Conditions Which Induce Giffen Behavior In Any Numerical Analysis When Applied To The Wold-Juréen (1953) Utility Function

Sproule, Robert and Karras, Michael (2022): Two Conditions Which Induce Giffen Behavior In Any Numerical Analysis When Applied To The Wold-Juréen (1953) Utility Function.

Abstract

The present paper extends the existing literature on the relationship between the Wold-Juréen (1953) utility function and Giffen behavior, by extending the recent contribution by Sproule (2020) to the domain of numerical methods. In particular, this paper offers an analytical framework, by which a numerical analysis can used to induce the Wold-Juréen (1953) utility function to exhibit Giffen behavior. Our framework also demonstrates the instructional value to the Wold-Juréen (1953) utility function, especially in those microeconomics courses, in which calculus is not employed or is not emphasized.

• Item Type: MPRA Paper
• Language: English
• Keywords: Wold-Juréen (1953) utility function, Slutsky decomposition, Giffen paradox, pedagogy.
• Subjects: A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A22 - Undergraduate; A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A23 - Graduate; D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles

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