Giffen Behavior and Subsistence Consumption

Jensen, Robert T.; & Miller, Nolan H. (2008). Giffen Behavior and Subsistence Consumption. The American economic review, 98(4), 1553-1577.

Citation:

Jensen, Robert T.; & Miller, Nolan H. (2008). Giffen Behavior and Subsistence Consumption. The American economic review, 98(4), 1553-1577.

Citation Export File (RIS Format):
Octet Stream icon

1327.ris — Octet Stream, 953 bytes

Abstract:

This paper provides the first real-world evidence of Giffen behavior, i.e., upward sloping demand. Subsidizing the prices of dietary staples for extremely poor households in two provinces of China, we find strong evidence of Giffen behavior for rice in Hunan, and weaker evidence for wheat in Gansu. The data provide new insight into the consumption behavior of the poor, who act as though maximizing utility subject to subsistence concerns. We find that their elasticity of demand depends significantly, and nonlinearly, on the severity of their poverty. Understanding this heterogeneity is important for the effective design of welfare programs for the poor.

URL:

http://dx.doi.org/10.1257/aer.98.4.1553

Keyword(s):

Notes:

Reference Type:
JOUR

Secondary Title:

Series Title:

Author(s):
Jensen, Robert T.
Miller, Nolan H.

Editor(s):

Series Author(s):

Year Published:
2008

Date Published:

Journal Name:
The American economic review

Volume Number:
98

Issue Number:
4

Start Page Number:
1553-1577

End Page Number:

Edition:

Series Volume:

Publisher:

City of Publication:

ISSN/ISBN:

DOI:
10.1257/aer.98.4.1553

PMCID:

NIHMSID:

Reference ID:
1327

Miscellaneous:

Navigation

a UNC Carolina Population Center project