The Mechanism of Giffen Behaviour

Drew Zhu ()

MPRA Paper from University Library of Munich, Germany

Abstract: The law of demand might have no exception and the Giffen behavior should be one of the standard forms of the law. According to the new attribute theory and semi-empirical simulation method, Giffen behavior is verified in a general equilibrium framework using the data of food consumption in rural China. The superior food and the wealthy households with high preference for taste have higher possibility than the inferior food and low income households in exhibiting Giffen property. Therefore, to find empirical Giffen behavior, we should focus on the superior food and wealthy households with high preference for taste.

Keywords: Law of demand; New attribute theory; Giffen behavior (search for similar items in EconPapers)
JEL-codes: C61 D01 D11 D12 (search for similar items in EconPapers)
Date: 2016-12-20
New Economics Papers: this item is included in nep-agr and nep-tra
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