Giffen Behavior and Subsistence Consumption Online Appendix

Giffen Behavior and Subsistence Consumption.

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 maximiz...

Table of Contents Giffen Behavior and Subsistence Consumption Zeckhauser and Two Anonymous Referees for Valuable Comments and Discussions, and I. Giffen Behavior and Consumption among the Poor

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 maximiz...

Demand for Alcohol Consumption in Russia and Its Implication for Mortality: ONLINE APPENDIX

Online Appendix: Calculation of Equivalent Variation in Permanent Income Hypotheses Studies

This online appendix explains the calculation of the equivalent variations depicted in Table 1 of the chapter " Natural Experiments in Macroeconomics " for the Handbook of Macroeconomics. To calculate the equivalent variation (EV), we assume the following: • utility is monthly additive • the household has CRRA utility, u(y) = y 1−γ 1−γ , with regular monthly expenditure y and risk aversion γ = ...

A Note on Economic Growth with Subsistence Consumption

It is well known that the performance of simple models of economic growth improves substantially through the introduction of subsistence consumption. How to compute subsistence needs, however, is a difficult and controversially discussed issue. Here, I reconsider the linear (Ak) growth model with subsistence consumption and show that the evolution of savings rates and economic growth rates over...