On the Existence of "Giffen Goods" again

Abstract:

Whether Giffen goods exist or not has long been a argument in economics academic circle. This paper analyzes and evaluates the two opposing arguing points represented by Zhang Wuchang and Wang Dingding. At the same time, through analyzing in depth the explanation offered by Hicks Decomposition to Giffen goods in economics textbook,the paper points out that Hicks Decomposition to Giffen goods is against the axiom of Diminishing Marginal Utility, so that Giffen good is not likely to exist in reality.

• Periodical: Applied Mechanics and Materials (Volumes 380-384)
• Pages: 4521-4524
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.380-384.4521
• Online since: August 2013
• Authors: Su Yu
• Keywords: Axiom of Diminishing Marginal Utility, Giffen Goods, Hicks Decomposition, Paradox

References

[1] Zhang Wuchang, Economics Explanation, [M] Arcadia Press (Hong Kong), Nov., (2002).

[2] Wang Dingding, Is There Upward Demand Curve?, [N] Economic News, May 4th, (2001).

[3] M Skousen, KC Taylor, Puzzles and Paradoxes in Economics, [M] Hua Xia Press, Oct., (2001).

[4] Liu Zhengshan, Is There "Giffen Goods" in the World, [N] International Finance News, August 16th, (2002).

[5] Zhou Huizhong, Microeconomics", [M] Century Publishing Group, Shanghai People, s Publishing House, September 1st, 2003, the first edition.