Publication Type
Working Paper
Version
publishedVersion
Publication Date
1-2012
Abstract
I provide a simple example of a single peaked utility function that generates a Giffen demand. The utility function is smooth, non piecewise defined, strictly concave but not globally increasing. A full characterization of the parameter conditions under which the Giffen demand arises is provided. In addition the properties of the demand function are studied: I find that the inferior commodity with a Giffen demand must be cheaper relatively to a substitute and that Giffen demand arises at relatively low levels of income. However it is not required that the share of income spent on that commodity be large.
Keywords
Giffen behavior, Utility function, Single peakedness, Expenditure share
Discipline
Economic Theory
Research Areas
Economic Theory
First Page
1
Last Page
34
Publisher
SMU Economics and Statistics Working Paper Series, No. 02-2012
City or Country
Singapore
Citation
LANDI, Massimiliano.
Single Peakedness and Giffen Demand. (2012). 1-34.
Available at: https://ink.library.smu.edu.sg/soe_research/1324
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.