Testing a Theory of Exact Aggregation

Nicol, Christopher J.

doi:10.1080/07350015.1989.10509735

Cited by 8 publications

(4 citation statements)

References 9 publications

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“…Family size and housing tenure have been found to be of such importance in other demand studies~for example, Barnes and Gillingham 1984;Nicol 1989!, that they merit stratifying households into groups based on these variables. Household types were therefore classified according to three different family sizes: married couples without children; married couples with one child; and married couples with two children.…”

Section: Datamentioning

confidence: 98%

“…Ϫ a~p, n!# yields a non-exactly aggregable demand system. To control for the most important household characteristics effects as evidenced in the work of Barnes andGillingham 1984 andNicol 1989!, six different household group subsamples, based on family size and housing tenure status, were employed. Other variables, like labour force participation effects, were included directly via the vector, n. Details of the overall approach will be explained further in section 4.…”

Section: !mentioning

confidence: 99%

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The rank and model specification of demand systems: an empirical analysis using United States microdata

Nicol

2001

Canadian J of Economics

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A rank-three demand system is estimated with United States Consumer Expenditure Survey microdata. A unique price data set is also used, which permits the analysis of effects of systematic errors in price variables. It is found that errors in price variables bias test results for the rank-three hypothesis, in particular towards rejection. Other test results are affected to a lesser extent. Estimating smaller systems of demand equations, even when conditioning on excluded goods, yields significantly different results. Another important conclusion is that model specification is statistically significantly different for households of varying family sizes and housing tenure statuses. JEL Classifications: C31, D12.Le rang et la spécification du modèle des systèmes de demande: une analyse empirique utilisant des microdonnées américaines. On calibre un système de demande de rang trois à l'aide de microdonnées américaines tirées de la United States Consumer Expenditures Survey. Un ensemble unique de prix est utilisé afin de permettre l'analyse des effets d'erreurs systématiques dans les variables de prix. Il appert que les erreurs dans les variables de prix distorsionnent les résultats du test de l'hypothèse de rang trois en faveur d'un rejet. D'autres résultats de tests sont affectés à un moindre degré. Si l'on calibre de plus petits systèmes d'équations de demande, même en posant des conditions sur des biens exclus, des résultats qui diffèrent de manière significative s'ensuivent. Une autre conclusion importante est que la spécification du modèle est différente de manière statistiquement significative pour les ménages selon la taille de la famille et le statut domiciliaire.

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Section: Datamentioning

confidence: 98%

Section: !mentioning

confidence: 99%

The rank and model specification of demand systems: an empirical analysis using United States microdata

Nicol

2001

Canadian J of Economics

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“…These features had not all been simultaneously included in a general demand model. Households were rst strati ed by family size and housing tenure status (an approach suggested in research b y Barnes andGillingham, 1984, andNicol, 1989). Then, the demand functions were speci ed to have a rank three form, resulting in share equations quadratic in real expenditures.…”

Section: Model Speci Cationmentioning

confidence: 99%

03/01665 Elasticities of demand for gasoline in Canada and the United States

2003

Fuel and Energy Abstracts

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“…A closely related body of literature focuses on the construction of aggregates (vertically) over individual consumers and producers (e.g., Muellbauer;Nichols;Gorman 1953Gorman , 1968Stoker;Jorgenson, Lau, and Stoker;Antle;Chambers). This literature's motivation typically is the construction of an aggregate income, output, or capital index to be used in aggregate demand, cost, or profit systems.…”

mentioning

confidence: 99%

Testing for Consistent Aggregation

Chambers

Pope

1991

American J Agri Economics

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This paper designs workable empirical procedures for testing or imposing supply (demand)-price aggregators. Only single-equation methods are considered to shift the focus from any particular optimizing paradigm toward the necessities for correctly tabulating firm-level supplies (demands) and aggregate supply (demand). Both macroand micro-level tests for consistent aggregation are developed. And constructive mies for aggregation based upon empirically observed micro behavior are provided in tabular form. Empirical tests reveal no support for the aggregate price most commonly reported by USDA. The constructive rules are then used to develop a new wheat-price index consistent with supply aggregation.

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Testing a Theory of Exact Aggregation

Cited by 8 publications

References 9 publications

The rank and model specification of demand systems: an empirical analysis using United States microdata

The rank and model specification of demand systems: an empirical analysis using United States microdata

03/01665 Elasticities of demand for gasoline in Canada and the United States

Testing for Consistent Aggregation

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