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Aggregation without Separability: Tests of the United States and Mexican Agricultural Production Data

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  • George C. Davis
  • Ni Lin
  • C. Richard Shumway

Abstract

The generalized composite commodity theorem (GCCT) and testing procedure is extended to test for consistent aggregation of the United States and Mexican agricultural production data in each category for which earlier tests rejected homothetic separability. Nonrejected GCCT and separability hypotheses provide empirical support for aggregating all the United States agricultural outputs into as few as two categories: crops and livestock. Mexican agricultural outputs also can be aggregated into as few as two categories. Support for aggregating all outputs into a single category is ambiguous in both countries and is only provided by the GCCT. Copyright 2000, Oxford University Press.

Suggested Citation

  • George C. Davis & Ni Lin & C. Richard Shumway, 2000. "Aggregation without Separability: Tests of the United States and Mexican Agricultural Production Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 214-230.
    • Handle: RePEc:oup:ajagec:v:82:y:2000:i:1:p:214-230
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00017
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    Cited by:

    1. Serra, Teresa & Zilberman, David & Gil, Jose Maria, 2008. "Farms' technical inefficiencies in the presence of government programs," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 1-20.
    2. Reed, Albert J. & Levedahl, J. William & Hallahan, Charles B., 2004. "The Generalized Composite Commodity Theorem And Food Demand Estimation," 2004 Annual meeting, August 1-4, Denver, CO 20107, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Asche, Frank & Guttormsen, Atle G. & Kristofersson, Dadi & Roheim, Cathy A., 2005. "Import Demand Estimation and the Generalized Composite Commodity Theorem," 2005 Annual meeting, July 24-27, Providence, RI 19432, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Ball, V. Eldon & Lovell, C.A. Knox & Luu, H. & Nehring, Richard F., 2004. "Incorporating Environmental Impacts in the Measurement of Agricultural Productivity Growth," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-25, December.
    5. Teresa Serra & David Zilberman & José M. Gil, 2008. "Differential uncertainties and risk attitudes between conventional and organic producers: the case of Spanish arable crop farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 219-229, September.
    6. Qinghua Liu & C. Richard Shumway, 2004. "Testing aggregation consistency across geography and commodities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 463-486, September.
    7. Moro, Daniele, 2001. "Aggregation without separability: Composite commodity theorems in quantity-space," Economics Letters, Elsevier, vol. 71(1), pages 67-73, April.
    8. Lee L. Schulz & Ted C. Schroeder & Tian Xia, 2012. "Studying composite demand using scanner data: the case of ground beef in the US," Agricultural Economics, International Association of Agricultural Economists, vol. 43, pages 49-57, November.
    9. Heng, Yan & House, Lisa, 2016. "A Composite Demand Analysis for the Beverage Market," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235704, Agricultural and Applied Economics Association.
    10. Manami Ogura, 2024. "Testing the aggregation of goods and services without separability using panel data," Empirical Economics, Springer, vol. 67(4), pages 1581-1613, October.
    11. Serra, Teresa & Goodwin, Barry K. & Featherstone, Allen M., 2011. "Risk behavior in the presence of government programs," Journal of Econometrics, Elsevier, vol. 162(1), pages 18-24, May.
    12. Li, Wenying & Zhen, Chen, 2017. "A Reassessment of Product Aggregation Bias in Demand Analysis: An Application to the U.S. Meat Market," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258197, Agricultural and Applied Economics Association.

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