A Study of the Aggregation of Dairy Product Demand

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Other Title
  • 乳製品需要の財集計に関する研究
  • Nonparametric Tests for Weak Separability Using POS Data
  • -POSデータを用いた弱分離可能性のノンパラメトリック検定-

Abstract

It is common to aggregate goods in the empirical analysis of demand. However, there must be a utility function that can be rationalized for the respective data. In this study, we apply a non-parametric test devised by Varian (1983) to a weakly separable utility function. Applying the test to dairy POS data, we obtain results indicating the need to reject their aggregation into representative goods categories, as in previous studies. On the other hand, by introducing the Afriat efficiency index, we infer that the goodness-of-fit of the GARP test is significant. Therefore, although the validity of aggregation is not supported, the degree of aggregation error may not be significant.

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