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Testing Hicksian Separability Over Space

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  • Gibson, John
  • Kim, Bonggeun

Abstract

If relative prices of goods within a commodity group are constant, Hicksian separability lets the price of a single good represent the group price level. This is relied on by designers of price questionnaires used in household surveys and by methods of estimating demand systems from household survey data. A survey from Vietnam with multiple specifications from within the same food groups clearly shows that within-group relative prices are not constant over space.

Suggested Citation

  • Gibson, John & Kim, Bonggeun, 2013. "Testing Hicksian Separability Over Space," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150387, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150387
    DOI: 10.22004/ag.econ.150387
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    References listed on IDEAS

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    1. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
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    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    6. Frank Asche & Helge Bremnes & Cathy R. Wessells, 1999. "Product Aggregation, Market Integration, and Relationships between Prices: An Application to World Salmon Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 568-581.
    7. McKelvey, Christopher, 2011. "Price, unit value, and quality demanded," Journal of Development Economics, Elsevier, vol. 95(2), pages 157-169, July.
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    Cited by:

    1. Gibson, John & Kim, Bonggeun, 2013. "Quality, Quantity, and Nutritional Impacts of Rice Price Changes in Vietnam," World Development, Elsevier, vol. 43(C), pages 329-340.

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