A Geometrical Approach to Giffen Behavior: The Epstein and Spiegel Utility Function Revisited

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<jats:p>Weber (<jats:italic>The Manchester School</jats:italic>, Vol. 69 (2001), No. 6, pp. 616–622) has asserted that if we treat the production function of Epstein and Spiegel (<jats:italic>The Manchester School</jats:italic>, Vol. 68 (2000), No. 5, pp. 503–515) as a utility function, then an inferior good exhibits Giffen behavior at certain prices and income levels. This paper shows that it is not correct. Furthermore, we develop a geometrical method (i) to identify a region in a consumption set where Giffen behavior appears, (ii) to show that Giffen behavior can be categorized into two types: ‘subsistence‐driven’ and ‘satiation‐driven’, and (iii) to present a new class of Giffen utility functions.</jats:p>

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Details 詳細情報について

  • CRID
    1871709542575552512
  • DOI
    10.1111/manc.12198
  • ISSN
    14679957
    14636786
  • Data Source
    • OpenAIRE

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