Giffen good


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Related to Giffen good: Engel curve

Giffen good

Any good that is purchased in greater quantities as its price increases.
References in periodicals archive ?
Given the existence of inferior goods, it's possible to imagine a Giffen good.
Eeckhoudt, 1989, More on Insurance as a Giffen Good, Journal of Risk and Uncertainty, 2: 415-420.
However, a person with decreasing absolute risk aversion might treat insurance as a Giffen good when the income effect is greater than the substitution effect.
As is clear from Figure 2b, Good 1 is a Giffen good.
Hoy and Robson (1981) further discuss the case in which market insurance can be a Giffen good.
Third, also consequently, a good's demand schedule may be flatter than neoclassical theory assumes, or even, without being a Giffen good, may conceivably have a positive slope.
Theorem 14: For a good to be a Giffen good, the income effect must be larger in absolute value than the substitution effect, and the good must be inferior.
Schools are so determined to impress upon economists-in-training the importance of Giffen Good paradoxes and the latest debate between Smithian free-market and Keynesian philosophies that these trees tend to obscure the forest of daily practice.
Indeed, it's even possible, under these circumstances, that pornography addicts will plow the "income" saved from forgone rapes back into the consumption of pornography, in which case pornography would, for these men, exhibit the characteristics of a Giffen good.
For example, Boland makes a lengthy argument that neoclassical economics cannot admit the possibility of a Giffen good because such goods are inconsistent with the well-known stability conditions for market-determined prices; if the demand curve slopes upward, there may be no determinate market price.
To see whether a coinsurance-type insurance policy is a Giffen good, one simply check the sign of d[[alpha].
Thus, Gilley and Karels [1991] claim, in essence, that the food which provides the most calories per dollar spent must be a Giffen good.