This paper extends the nonparametric methods developed by Samuelson (1948), Houthakker (1950), Afriat (1973), Diewert (1973) and Varian (1982, 1983) to latently separable models. It presents necessary and sufficient empirical conditions under which data on the market behaviour of a price-taking consumer, and a hypothesised allocation across latent groups are nonparametrically consistent with latent separability (Gorman (1968, 1978), Blundell and Robin (2000)). It considers homothetic latent separability and weak separability as special cases.
Authors
Ian Crawford
Working Paper details
- DOI
- 10.1920/wp.ifs.2004.0417
- Publisher
- IFS
Suggested citation
Crawford, I. (2004). Necessary and sufficient conditions for latent separability. London: IFS. Available at: https://ifs.org.uk/publications/necessary-and-sufficient-conditions-latent-separability (accessed: 26 April 2024).
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