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Latent Separability: Grouping Goods without Weak Separability

2000; Wiley; Volume: 68; Issue: 1 Linguagem: Inglês

10.1111/1468-0262.00093

1468-0262

Richard Blundell, Jean‐Marc Robin,

Income, Poverty, and Inequality

EconometricaVolume 68, Issue 1 p. 53-84 Latent Separability: Grouping Goods without Weak Separability Richard Blundell, Richard Blundell Dept. of Economics, University College, and Institute for Fiscal Studies, UK,Search for more papers by this authorJean-Marc Robin, Jean-Marc Robin INRA-LEA, and CREST-INSEE, FranceSearch for more papers by this author Richard Blundell, Richard Blundell Dept. of Economics, University College, and Institute for Fiscal Studies, UK,Search for more papers by this authorJean-Marc Robin, Jean-Marc Robin INRA-LEA, and CREST-INSEE, FranceSearch for more papers by this author First published: 10 December 2003 https://doi.org/10.1111/1468-0262.00093Citations: 64AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL 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. Citing Literature Volume68, Issue1January 2000Pages 53-84 RelatedInformation