Aggregate Consumer Behaviour without Exact Aggregation.

A model of consumer behavior is estimated by pooling Canadian cross-sectional and time-series data. In contrast to a similar study by D. W. Jorgenson, L. J. Lau, and T. M. Stoker (1982), exact aggregation, homogeneity, and symmetry are not imposed but are tested. Exact aggregation is rejected. However, these data are less sensitive to homogeneity and symmetry restrictions. Demographic effects appear to be important determinants of demand. The model can also be estimated using only cross-sectional data. These results indicate that exact aggregation should not be imposed, and household demographic effects should be modeled. Homogeneity and symmetry seem relatively less restrictive for these data.