A Precondition-Free Demonstration That the Wold-Juréen (1953) Utility Function (Always) Generates a Giffen Good

Robert Sproule and Michael Karras

MPRA Paper from University Library of Munich, Germany

Abstract: Both Weber (1997) and Sproule (2020) offered a precondition for the existence of Giffenity when the decision maker's utility function is the Wold-Juréen (1953) utility function. The purpose of this paper is to show that all preconditions (including those due to Weber (1997) and Sproule (2020)) are superfluous, in the present demonstration that the inferior good in the Wold-Juréen (1953) utility function is also a Giffen good. Our success relies upon our use of both of the Marshallian demand functions, rather than just one, as is the case in both Weber (1997) and Sproule (2020). In brief, the present paper offers a precondition-free demonstration that the Wold-Juréen (1953) utility function will (always) generate a Giffen good.

Keywords: Slutsky decomposition; Giffen Good; Wold-Juréen (1953) utility function; pedagogy. (search for similar items in EconPapers)
JEL-codes: A22 A23 D11 (search for similar items in EconPapers)
Date: 2022-05-08
New Economics Papers: this item is included in nep-upt
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