Inferior Good

Definition

Health Economics

  • A good for which a change in income causes an opposite change in demand. The income-elasticity is negative. In an extreme case and if money income does not change, it is possible to conceive of the demand for a strongly inferior good actually having a positive relationship to price, though alleged examples of this so-called Giffen good, named after the British statistician Sir Robert Giffen (1837-1910), are hotly contested and none are known in the health care literature.
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