Publication: Journal of Economic Education
Volume: Volume 25, No. 2
Issue: Spring 1994
Pages: pp. 137-147
Author(s): Uriel Spiegel (Bar-Ilan University)
Address (Principal Author):Uriel Spiegel, Department of Economics, Bar-Ilan University, 52900 Ramat-Gan, Israel
Internet Address (Principal Author):
Title: The Case of a 'Giffen Good
Abstract: "Giffen good" is a special case of an inferior good that every Microeconomic book presents and explains graphically. However, we do not know of any textbook that presents a specific utility function and develops a numerical example that shows a positive slope demand curve for a Giffen good. In this paper we present such a utility function from which we derive the Giffenity characteristics and illustrate by some general cases as well as empirical research that Giffen goods are far more pervasive than is generally believed.