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 ?
This 'Giffen good' effect, the technical term for this perverse demand behavior, was also seen during the potato famine in 19th-century Ireland.
Since the 19th century, economists have been speculating about the existence of a " Giffen good"--a good with an upward-sloping demand curve, meaning that demand for the good increases as its price increases (all else equal).
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.
Eeckhoudt, 1989, More on Insurance as a Giffen Good, Journal of Risk and Uncertainty, 2: 415-420.
As is clear from Figure 2b, Good 1 is a Giffen good. Indeed, for the utility function in Equation (17), Giffenity is synonymous with strong asymmetric gross substitutability.
(8.) 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.
Because of an increase in the green tax, the environment improves ([MEI.sub.d] [greater than] 0; provided that d is not 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.
Facing this difficulty, Briys, Dionne, and Eeckhoudt (1989) have only attempted to reinvestigate Hoy and Robson's (1981) result for insurance to be a Giffen good under the special case of a two-state risk.