TEMPORAL AND SPATIAL AGGREGATION - ALTERNATIVE MARKETING MARGIN MODELS

The effects of temporal and spatial data aggregation on the performanc e of alternative marketing margin models is assessed using monthly, qu arterly, and semiannual fluid milk prices from three U.S. cities. Nonn ested tests for multivariate and single equation models with serial co rrelation are used to choose among alternative models at each aggregat ion level. While model choice is affected by temporal and spatial aggr egation, model choice becomes more difficult as data are temporally or spatially aggregated.