IDEAS home Printed from https://ideas.repec.org/a/bes/jnlbes/v21y2003i1p133-44.html
   My bibliography  Save this article

A New PC-Based Test for Varian's Weak Separability Conditions

Author

Listed:
  • Fleissig, Adrian R
  • Whitney, Gerald A

Abstract

This article develops a new method to evaluate revealed preference separability conditions. In contrast to previous studies, our results generally find weak separability, even when datasets have some measurement error. In addition, revealed preference and weak separability appear robust to measurement error, different price distributions, and alternative preference settings. Measurement error generally results in relatively few violations of revealed preference or weak separability.

Suggested Citation

  • Fleissig, Adrian R & Whitney, Gerald A, 2003. "A New PC-Based Test for Varian's Weak Separability Conditions," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 133-144, January.
  • Handle: RePEc:bes:jnlbes:v:21:y:2003:i:1:p:133-44
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ryan S. Mattson & Philippe de Peretti, 2014. "Investigating the Role of Real Divisia Money in Persistence-Robust Econometric Models," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00984827, HAL.
    2. Elger, C. Thomas & Jones, Barry E. & Edgerton, David L. & Binner, Jane M., 2008. "A Note On The Optimal Level Of Monetary Aggregation In The United Kingdom," Macroeconomic Dynamics, Cambridge University Press, vol. 12(1), pages 117-131, February.
    3. Cherchye, L.J.H. & Crawford, I. & de Rock, B. & Vermeulen, F.M.P., 2011. "Aggregation without the Aggravation? Nonparametric Analysis of the Representative Consumer," Discussion Paper 2011-143, Tilburg University, Center for Economic Research.
    4. John Quah, 2014. "A test for weakly separable preferences," Economics Series Working Papers 708, University of Oxford, Department of Economics.
    5. Ian Crawford & Bram De Rock, 2014. "Empirical Revealed Preference," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 503-524, August.
    6. Cherchye, Laurens & Demuynck, Thomas & De Rock, Bram & Hjertstrand, Per, 2015. "Revealed preference tests for weak separability: An integer programming approach," Journal of Econometrics, Elsevier, vol. 186(1), pages 129-141.
    7. Elger, Thomas & Jones, Barry & Edgerton, David & Binner, Jane, 2004. "The Optimal Level of Monetary Aggregation in the UK," Working Papers 2004:7, Lund University, Department of Economics, revised 26 Jan 2005.
    8. Matthew Polisson, 2018. "A Lattice Test for Additive Separability," Discussion Paper Series, School of Economics and Finance 201801, School of Economics and Finance, University of St Andrews.
    9. Jan Heufer, 2008. "A Geometric Measure for the Violation of Utility Maximization," Ruhr Economic Papers 0069, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    10. Hjertstrand, Per & L. Swofford, James & Whitney, Gerald A., 2013. "Revealed Preference Tests of Utility Maximization and Weak Separability of Consumption, Leisure and Money with Incomplete Adjustment," Working Paper Series 971, Research Institute of Industrial Economics.
    11. Heufer, Jan, 2008. "A Geometric Measure for the Violation of Utility Maximization," Ruhr Economic Papers 69, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Fleissig, Adrian R. & Whitney, Gerald, 2011. "A revealed preference test of rationing," Economics Letters, Elsevier, vol. 113(3), pages 234-236.
    13. Jones, Barry E. & Stracca, Livio, 2006. "Are money and consumption additively separable in the euro area? A non-parametric approach," Working Paper Series 704, European Central Bank.
    14. Hjertstrand, Per & Swofford, James L., 2019. "Revealed preference tests of indirect and homothetic weak separability of financial assets, consumption and leisure," Journal of Financial Stability, Elsevier, vol. 42(C), pages 108-114.
    15. Apostolos Serletis & Libo Xu, "undated". "Consumption, Leisure, and Money," Working Papers 2019-08, Department of Economics, University of Calgary, revised 06 Jul 2019.
    16. Laurens Cherchye & Ian Crawford & Bram De Rock & Frederic Vermeulen, 2015. "Revealed Preference and Aggregation," Working Papers ECARES ECARES 2015-08, ULB -- Universite Libre de Bruxelles.
    17. Drake, Leigh & Fleissig, Adrian R., 2008. "A Note On The Policy Implications Of Using Divisia Consumption And Monetary Aggregates," Macroeconomic Dynamics, Cambridge University Press, vol. 12(1), pages 132-149, February.
    18. Hjertstrand, Per & Swofford, James L. & Whitney, Gerald A., 2019. "Index Numbers and Revealed Preference Rankings," Working Paper Series 1308, Research Institute of Industrial Economics.
    19. repec:zbw:rwirep:0069 is not listed on IDEAS
    20. Ryan S. Mattson & Philippe de Peretti, 2014. "Investigating the Role of Real Divisia Money in Persistence-Robust Econometric Models," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00984827, HAL.
    21. Smeulders, Bart & Crama, Yves & Spieksma, Frits C.R., 2019. "Revealed preference theory: An algorithmic outlook," European Journal of Operational Research, Elsevier, vol. 272(3), pages 803-815.
    22. Fleissig, Adrian R. & Whitney, Gerald A., 2015. "A revealed preference test of rationing a Monte Carlo analysis," Economic Modelling, Elsevier, vol. 45(C), pages 207-211.
    23. Hjertstrand, Per & Jones, Barry E., 2013. "What Do Revealed Preference Axioms Reveal about Elasticities of Demand?," Working Paper Series 972, Research Institute of Industrial Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bes:jnlbes:v:21:y:2003:i:1:p:133-44. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum). General contact details of provider: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.