Latent separability: grouping goods without weak separability

Richard Blundell () and Jean-Marc Robin ()
Additional contact information
Jean-Marc Robin: CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - GENES - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - GENES - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, LEA - Laboratoire d'Economie Appliquée - INRA - Institut National de la Recherche Agronomique, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

Sciences Po Economics Publications (main) from HAL

Abstract: This paper develops a new concept of separability with overlapping groups—latent separability. This is shown to provide a useful empirical and theoretical framework for investigating the grouping of goods and prices. It is a generalization of weak separability in which goods are allowed to enter more than one group and where the composition of groups is identified by the choice of group specific exclusive goods. Latent separability is shown to be equivalent to weak separability in latent rather than purchased goods and provides a relationship between separability and household production theory. For the popular class of linear, almost ideal and translog demand models and their generalizations, we provide a method for choosing the number of homothetic separable groups. A detailed method for exploring the composition of the separable groups is also presented. These methods are applied to a long time series of British individual household data on the consumption of twenty two nondurable and service goods.

Date: 2000
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03462409v1
References: Add references at CitEc
Citations:

Published in Econometrica, 2000, 68 (1), pp.53 - 84

Downloads: (external link)
https://sciencespo.hal.science/hal-03462409v1/document (application/pdf)

Related works:
Journal Article: Latent Separability: Grouping Goods without Weak Separability (2000)
Working Paper: Latent Separability: Grouping Goods without Weak Separability (2000)
Working Paper: Latent separability: grouping goods without weak separability (2000)
Working Paper: Latent separability: grouping goods without weak separability (2000)
Working Paper: Latent separability: grouping goods without weak separability (1995)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03462409

Access Statistics for this paper

More papers in Sciences Po Economics Publications (main) from HAL
Bibliographic data for series maintained by Contact - Sciences Po Department of Economics ().