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Aggregate Consumer Behaviour without Exact Aggregation

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  • Christopher J. Nicol

Abstract

A model of consumer behavior is estimated by pooling Canadian cross-sectional and time-series data. In contrast to a similar study by D. W. Jorgenson, L. J. Lau, and T. M. Stoker (1982), exact aggregation, homogeneity, and symmetry are not imposed but are tested. Exact aggregation is rejected. However, these data are less sensitive to homogeneity and symmetry restrictions. Demographic effects appear to be important determinants of demand. The model can also be estimated using only cross-sectional data. These results indicate that exact aggregation should not be imposed, and household demographic effects should be modeled. Homogeneity and symmetry seem relatively less restrictive for these data.

Suggested Citation

  • Christopher J. Nicol, 1991. "Aggregate Consumer Behaviour without Exact Aggregation," Canadian Journal of Economics, Canadian Economics Association, vol. 24(3), pages 578-594, August.
    • Handle: RePEc:cje:issued:v:24:y:1991:i:3:p:578-94
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    Cited by:

    1. Daniel R. Mullins & Sally Wallace, 1996. "Changing Demographics and State Fiscal Outlook: the Case of Sales Taxes," Public Finance Review, , vol. 24(2), pages 237-262, April.
    2. Vik Singh, 2005. "Estimating a third-order translog demand system using Canadian micro-data," Econometrics 0512011, University Library of Munich, Germany.
    3. Cranfield, J. A. L. & Preckel, Paul V. & Eales, James S. & Hertel, Thomas W., 2004. "Simultaneous estimation of an implicit directly additive demand system and the distribution of expenditure--an application of maximum entropy," Economic Modelling, Elsevier, vol. 21(2), pages 361-385, March.

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