Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200297 
Year of Publication: 
2018
Series/Report no.: 
IFS Working Papers No. W18/08
Publisher: 
Institute for Fiscal Studies (IFS), London
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.
Subjects: 
additive separability
consumer demand
lattice test
revealed preference
JEL: 
C14
C60
D11
D12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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