25 Pages Posted: 11 Jul 2011
Date Written: July 11, 2011
This paper analyzes the theoretical foundations of Giffen goods and details the difficulty with which prior studies have encountered limited empirical proof of Giffenity. Subsequently, a discussion of the economic overview of Russia during the early 1990s is provided. The paper then applies Giffenity to the newly established free market system of post-Soviet Union Russia while acknowledging changes in the prices for goods, specifically, for inferior food commodities. The paper concludes by advocating for the need to incorporate Giffenity into current economic theory to make it more comprehensive.
Keywords: Giffen goods, inferior goods, subsistence, Russia, household consumption, post-soviet transition
JEL Classification: D1, E2
Suggested Citation: Suggested Citation
Shachmurove, Yochanan and Szyrmer, Janusz M., Sir Robert Giffen Meets Russia in Early 1990s (July 11, 2011). PIER Working Paper No. 11-020. Available at SSRN: https://ssrn.com/abstract=1883530 or http://dx.doi.org/10.2139/ssrn.1883530