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Related Experiment Video

Updated: Jun 7, 2026

Tracking Sugar-Elicited Local Searching Behavior in Drosophila
03:53

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Published on: November 17, 2023

Giffen Behavior and Subsistence Consumption.

Robert T Jensen1, Nolan H Miller

  • 1Watson Institute for International Studies, Brown University, 111 Thayer St., Providence, RI 02912, and National Bureau of Economic Research ( robert_jensen@brown.edu ).

The American Economic Review
|October 30, 2010
PubMed
Summary
This summary is machine-generated.

This study presents the first real-world evidence of Giffen behavior, where demand increases with price. Subsidies for staple foods revealed this phenomenon in poor Chinese households, impacting rice and wheat consumption.

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Assessment of Social Transmission of Food Preferences Behaviors
04:56

Assessment of Social Transmission of Food Preferences Behaviors

Published on: January 25, 2018

Area of Science:

  • Behavioral Economics
  • Development Economics
  • Consumer Theory

Background:

  • Giffen behavior, characterized by an upward-sloping demand curve, is a rare economic phenomenon.
  • Understanding the consumption patterns of impoverished populations is crucial for effective policy interventions.

Purpose of the Study:

  • To provide the first real-world evidence of Giffen behavior.
  • To investigate the consumption behavior of extremely poor households in response to price subsidies for staple foods.

Main Methods:

  • Field experiment involving price subsidies for dietary staples (rice and wheat) in two Chinese provinces.
  • Econometric analysis of household consumption data to identify demand elasticities.

Main Results:

  • Strong evidence of Giffen behavior for rice in Hunan province.
  • Weaker evidence of Giffen behavior for wheat in Gansu province.
  • Demand elasticity is significantly and nonlinearly dependent on the severity of poverty.

Conclusions:

  • The study confirms the existence of Giffen behavior in real-world settings among the extremely poor.
  • Findings offer new insights into the utility maximization of the poor under subsistence constraints.
  • Understanding poverty-driven demand heterogeneity is vital for designing effective welfare programs.