Home > Uncategorized > Evidence of a Giffen good, right here in China

Evidence of a Giffen good, right here in China

One of my students asked me last week for an example of a Giffen good. I gave the textbook example of potatoes in Ireland years ago, and he had the good sense to ask for another example. Giffen goods aren’t common, and I had no idea what else could be considered a Giffen good. Another student suggested rice for very poor people.

Sure enough, just recently Robert Jensen and Nolan Miller found evidence that among poor households in China, rice behaves this way. Good guess, eh? I love it when my students think based on what they’ve learned, and make what is starting to resemble testable predictions.

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