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A Note on Testing Separability in Nonparametric Demand Analysis

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  • Cox, Thomas L.
  • Chavas, Jean-Paul

Abstract

This paper seeks to clarify the empirical options for testing separability in nonparametric demand analysis. It is noted that the Afriat-Varian characterization of weak separability can be obtained only under the restrictive assumption of a concave utility function. An alternative nonparametric separability test is discussed under weaker assumptions.

Suggested Citation

  • Cox, Thomas L. & Chavas, Jean-Paul, 1990. "A Note on Testing Separability in Nonparametric Demand Analysis," 1990 Annual meeting, August 5-8, Vancouver, Canada 270726, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:270726
    DOI: 10.22004/ag.econ.270726
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    References listed on IDEAS

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    3. Varian, H.R., 1988. "Goodness-Of-Fit In Demand Analysis," Papers 89-11, Michigan - Center for Research on Economic & Social Theory.
    4. McMillan, Melville L & Amoako-Tuffour, Joe, 1988. "An Examination of Preferences for Local Public Sector Outputs," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 45-54, February.
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    7. W. E. Diewert, 1973. "Afriat and Revealed Preference Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(3), pages 419-425.
    8. Swofford, James L & Whitney, Gerald A, 1987. "Nonparametric Tests of Utility Maximization and Weak Separability for Consumption, Leisure and Money," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 458-464, August.
    9. Chern, Wen S. & Lee, Hwang Jaw, 1989. "Nonparametric and Parametric Analyses of Demand for Food at Home and Away from Home," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270706, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, January.
    11. 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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