GIFFEN EFFECT MODEL

The mathematical model of the Giffen effect proposed in the article clearly demonstrates both the effect itself and the reasons for its manifestation. The main advantages of the model include its extreme simplicity, which opens up access to the widest circle of readers, the use of standard methods for solving the consumer choice problem, and the most important fundamental agreement with the results of the field experiment of Jensen and Miller. The model shows that any good for which there is a more expensive substitute can be of little value. This or that good is endowed with the appropriate property by a particular consumer due to his or her own preferences, income level and prevailing prices. Any good of little value, including those that can only be consumed by a high-income individual, may turn out to be Giffen’s goods. Therefore, the consumption of Giffen’s product cannot be considered as evidence of the low standard of living of the consumer. According to the model, an increase in demand for an increasingly expensive low-value good, which is the essence of the Giffen paradox, is the result of optimizing a set of goods, i.e. the result of rational consumer behavior. It is shown that for the manifestation of the Giffen effect, it is necessary that the amount of funds allocated by the consumer for the purchase of a low-value good and its more expensive substitute falls into a certain rather narrow range of values. The failures of numerous and long-term studies aimed at detecting empirical manifestations of Giffen behavior in various historical events are explained by the fact that the corresponding analysis was carried out on the basis of averaged rather than individual values of demand for all categories of consumers. As a result, the negative slope of the aggregate demand curve turned out to be dominant over the positive sections of certain individual demand curves.

Inequality in socially permissible consumption

Lower-income individuals are frequently criticized for their consumption decisions; this research examines why. Eleven preregistered studies document systematic differences in permissible consumption—interpersonal judgments about what is acceptable (or not) for others to consume—such that lower-income individuals’ decisions are subject to more negative and restrictive evaluations. Indeed, the same consumption decisions may be deemed less permissible for a lower-income individual than for an individual with higher or unknown income (studies 1A and 1B), even when purchased with windfall funds. This gap persists among participants from a large, nationally representative sample (study 2) and when testing a broad array of “everyday” consumption items (study 3). Additional studies investigate why: The same items are often perceived as less necessary for lower- (versus higher-) income individuals (studies 4 and 5). Combining both permissibility and perceived necessity, additional studies (studies 6 and 7) demonstrate a causal link between the two constructs: A purchase decision will be deemed permissible (or not) to the extent that it is perceived as necessary (or not). However, because—for lower-income individuals—fewer items are perceived as necessary, fewer are therefore socially permissible to consume. This finding not only exposes a fraught double standard, but also portends consequential behavioral implications: People prefer to allocate strictly “necessary” items to lower-income recipients (study 8), even if such items are objectively and subjectively less valuable (studies 9A and 9B), which may result in an imbalanced and inefficient provision of resources to the poor.

Addressing Excluded Sections through Sustainable Financing Policy Drives: Bangladesh Context

Financial inclusion could perform as a major force for the reduction of poverty by reducing inequalities. There are evidences that a small loan, a savings account or a micro insurance policy can make great difference to a low-income individual or a family. In addition, access to financial services is often viewed as essential factors to ensure participation of common people in the activities of the economy. The paper is about examining the sustainable finance initiatives of Bangladesh in the financial sector to address the vulnerable sections of the country. The paper identified certain barriers that are required to be addressed to draw expected outcomes.

Application of Ecological Architecture Principles in Eco Resort Design at Pemenang, Lombok

Lombok Island seems to be a favorite holiday destination for international and domestic tourists, because it has many tourists destinations, one of which is North Lombok Regency. This condition greatly impact on increasing regional income, individual of communities from service accommodation to tourist. However, judging from the interest of tourist visits which increase every year, the avaibility of facilites in terms of quantity and quality has not been balanced. For example, resort as a form of tourism accommodation are the most sought after by tourist, because the have the most complete facilities to pamper tourist while enjoying the beauty of the sorrounding environment. In fact, the condition of tourism accommodation especially in the sub-district of Pemenang can be said to have not developed according to the demand and needs of tourist. The existence of resorts as a place to serve tourists in the sub-district of Pemenang is very minimal, this can be said because the number of accommodation is dominated by homestay class which in general has incomplete facilities. Beside that, it needs to be supported by special treatment in planning a resort with an eco-architecture approach to reduce the enviromental impact of planning this resort. This approach in planning eco-resort is combined with combining the local architecture to be in harmony with the conditions and atmosphere of the sorrounding environment. So, tourists can be take a vacation and relax while feeling the atmosphere of the sorrounding environment that is presented in this tourist accommodation Index Terms— resort, eco architecture, reduce, local of architecture, environment.