Skip to content

Research at St Andrews

A lattice test for additive separability

Research output: Working paperDiscussion paper

Author(s)

School/Research organisations

Abstract

We derive necessary and sufficient conditions for a finite data set of price and demand observations to be consistent with an additively separable preference. We do so without imposing concavity on any of the subutility functions or convexity of the budget set a priori, thereby generalizing earlier results. Our simple and intuitive lattice test easily accommodates departures from rationality, or errors, which subsequently facilitates a rich empirical analysis. We apply our econometric techniques to the food consumption of a panel of British households. The primary empirical finding is that additive separability has considerable success in explaining the data.
Close

Details

Original languageEnglish
Place of PublicationSt Andrews
PublisherUniversity of St Andrews
Number of pages33
StatePublished - 12 Feb 2018

Publication series

NameSchool of Economics and Finance Discussion Paper
PublisherUniversity of St Andrews
No.1801
ISSN (Print)0962-4031
ISSN (Electronic)2055-303X

    Research areas

  • Additive separability, Consumer demand, Lattice test, Revealed preference

Discover related content
Find related publications, people, projects and more using interactive charts.

View graph of relations

Related by author

  1. Revealed preferences over risk and uncertainty

    Polisson, M., Quah, J. K-H. & Renou, L. 13 Sep 2017 St Andrews: University of St Andrews, 59 p.(School of Economics and Finance Discussion Paper; no. 1706)

    Research output: Working paperDiscussion paper

  2. ​Afriat's Theorem and Samuelson's 'Eternal Darkness'

    Polisson, M. & Renou, L. Aug 2016 In : Journal of Mathematical Economics. 65, p. 36-40

    Research output: Contribution to journalArticle

  3. Testing for Intertemporal Nonseparability

    Crawford, I. & Polisson, M. May 2014 In : Journal of Mathematical Economics. 52, p. 46-49

    Research output: Contribution to journalArticle

  4. Revealed Preference in a Discrete Consumption Space

    Polisson, M. & Quah, J. K-H. 2013 In : American Economic Journal: Microeconomics. 5, 1, p. 28-34

    Research output: Contribution to journalArticle

ID: 252373435