Product Aggregation Bias as a Specification Error in Demand Systems

Inherent in all demand studies is some form of product aggregation which can lead to product aggregation bias. This article develops a simple procedure for incorporating product aggregation bias in demand systems that permits testing of product aggregation bias with a standard likelihood ratio test. An empirical illustration of the procedure demonstrates the importance of proper product aggregation. Copyright 1997, Oxford University Press.

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Year of publication:	1997
Authors:	Davis, George C.
Published in:	American Journal of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA. - Vol. 79.1997, 1, p. 100-109
Publisher:	Agricultural and Applied Economics Association - AAEA

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009397717