> At 12:39 PM 9/18/96, [EMAIL PROTECTED] wrote: > > >Does anyone know of empirical examples of Giffin goods, either in > >case of a price increase or of a price decrease? While [EMAIL PROTECTED] (Doug Henwood) repsonds: Stocks? Doug ...... Well said, Doug! In particular Stocks and Foreign Exchange are great examples of Giffen goods. In general, all markets in which expectations of future prices play a more determinant role than actual prices, may act as "Giffen markets" if actual and expected prices changes follow different directions... The reason has to do (a.o.) with the fact that actual prices themselves may be strongly influenced by the expectations of future prices (as, e.g. in Harvey,J.(1991) `A Post Keynesian View of Exchange Rate Determination' (JPKE). En fin, that leaves neoclassical microeconomics with little room to explain market behaviour..., unless that it is admitted that the exception becomes the rule and viceversa. Salud Alex Alex Izurieta E-mail: [EMAIL PROTECTED] Institute of Social Studies P.O. Box 29776 2502 LT The Hague Tel. 31-70-4260480 Fax. 31-70-4260755
