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Can rejections of weak separability be attributed to random measurement errors in the data?

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  • Elger, Thomas
  • Jones, Barry E.

Abstract

Standard non-parametric weak separability tests do not account for measurement errors in the data. We propose a method to determine if rejections of weak separability obtained using such tests can be attributed to random measurement errors in the quantity data.

Suggested Citation

  • Elger, Thomas & Jones, Barry E., 2008. "Can rejections of weak separability be attributed to random measurement errors in the data?," Economics Letters, Elsevier, vol. 99(1), pages 44-47, April.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:44-47
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    References listed on IDEAS

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    1. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
    2. Hal R. Varian, 1983. "Non-parametric Tests of Consumer Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(1), pages 99-110.
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    5. William A. Barnett & Seungmook Choi, 2004. "A Monte Carlo Study of Tests of Blockwise Weak Separability," Contributions to Economic Analysis, in: Functional Structure and Approximation in Econometrics, pages 257-287, Emerald Group Publishing Limited.
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    8. Donald H. Dutkowsky & Barry Z. Cynamon & Barry E. Jones, 2006. "U.S. Narrow Money for the Twenty-First Century," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 142-152, January.
    9. repec:hal:spmain:info:hdl:2441/f0uohitsgqh8dhk9820172631 is not listed on IDEAS
    10. Dutkowsky, Donald H & Cynamon, Barry Z, 2003. "Sweep Programs: The Fall of M1 and Rebirth of the Medium of Exchange," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(2), pages 263-279, April.
    11. Philippe de Peretti, 2005. "A Comparison Of Two Methods For Testing The Utility Maximization Hypothesis When Quantity Data Are Measured With Error," Post-Print halshs-00646809, HAL.
    12. Philippe de Peretti, 2005. "A Comparison Of Two Methods For Testing The Utility Maximization Hypothesis When Quantity Data Are Measured With Error," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00646809, HAL.
    13. Swofford, James L. & Whitney, Gerald A., 1994. "A revealed preference test for weakly separable utility maximization with incomplete adjustment," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 235-249.
    14. Jones, Barry E. & Dutkowsky, Donald H. & Elger, Thomas, 2005. "Sweep programs and optimal monetary aggregation," Journal of Banking & Finance, Elsevier, vol. 29(2), pages 483-508, February.
    15. Varian, Hal R., 1985. "Non-parametric analysis of optimizing behavior with measurement error," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 445-458.
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    Cited by:

    1. Serletis, Apostolos & Xu, Libo, 2021. "Consumption, Leisure, And Money," Macroeconomic Dynamics, Cambridge University Press, vol. 25(6), pages 1412-1441, September.
    2. Barry E. Jones & Livio Stracca, 2008. "Does Money Matter In The Is Curve? The Case Of The Uk," Manchester School, University of Manchester, vol. 76(s1), pages 58-84, September.
    3. Bergh , Andreas & Nilsson, Therese, 2008. "Do economic liberalization and globalization increase income inequality?," Working Papers 2008:12, Lund University, Department of Economics.
    4. Per Hjertstrand & James L. Swofford & Gerald A. Whitney, 2016. "Mixed Integer Programming Revealed Preference Tests of Utility Maximization and Weak Separability of Consumption, Leisure, and Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(7), pages 1547-1561, October.
    5. 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.
    6. Sato, Hideyasu & 佐藤, 秀保, 2020. "Do Large-scale Point-of-sale Data Satisfy the Generalized Axiom of Revealed Preference in Aggregation Using Representative Price Indexes?: A Case Involving Processed Food and Beverages," RCESR Discussion Paper Series DP19-2, Research Center for Economic and Social Risks, Institute of Economic Research, Hitotsubashi University.
    7. 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.
    8. Binner, Jane M. & Bissoondeeal, Rakesh K. & Elger, C. Thomas & Jones, Barry E. & Mullineux, Andrew W., 2009. "Admissible monetary aggregates for the euro area," Journal of International Money and Finance, Elsevier, vol. 28(1), pages 99-114, February.
    9. Stoeckl, Natalie & Farr, Marina & Larson, Silva & Adams, Vanessa M. & Kubiszewski, Ida & Esparon, Michelle & Costanza, Robert, 2014. "A new approach to the problem of overlapping values: A case study in Australia׳s Great Barrier Reef," Ecosystem Services, Elsevier, vol. 10(C), pages 61-78.
    10. Hjertstrand, Per & Swofford, James L. & Whitney, Gerald A., 2019. "Index Numbers and Revealed Preference Rankings," Working Paper Series 1308, Research Institute of Industrial Economics.
    11. Hjertstrand, Per, 2013. "A Simple Method to Account for Measurement Errors in Revealed Preference Tests," Working Paper Series 990, Research Institute of Industrial Economics.

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