Sproule, Robert
(2019):
*The Delimitation of Giffenity for The Wold-Juréen (1953) Utility Function Using Relative Prices: A Note.*

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## Abstract

In the study of Giffen behavior or “Giffenity”, there remains a paradox. On one hand, the Wold-Juréen (1953) utility function has been touted as the progenitor of a multi-decade search for those two-good, particular utility functions, which exhibit Giffenity. On the other hand, there is no evidence that the Wold-Juréen (1953) utility function has ever been fully evaluated for Giffenity, with perhaps one minor exception, Weber (1997). But there, Weber (1997) showed that the Giffenity of Good 1 depends upon the relative magnitude of income vis-à-vis the price of Good 2. Weber’s precondition is so vague that it lacks broad appeal. This paper offers a new and a clear cut precondition for Giffen behavior under the Wold-Juréen (1953) utility function. That is, we show that if the price of Good 1 is greater than or equal to the price of Good 2, then Good 1 is a Giffen good.

Item Type: | MPRA Paper |
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Original Title: | The Delimitation of Giffenity for The Wold-Juréen (1953) Utility Function Using Relative Prices: A Note |

Language: | English |

Keywords: | Slutsky decomposition, Giffen paradox, Wold-Juréen (1953) utility function |

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 > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory |

Item ID: | 96768 |

Depositing User: | Dr Robert Sproule |

Date Deposited: | 12 Nov 2019 14:49 |

Last Modified: | 12 Nov 2019 14:49 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/96768 |