We examine whether annual,
quarterly, and monthly U.S. aggregate
consumption data could have been
generated by a utility-maximizing
representative agent with
intertemporally separable utility. The
model appears inapplicable over the full
time periods covered by the NIPA data,
which are the sample periods often used
in the literature. The model does
appear applicable, however, over long
subsamples. The data also are
inconsistent with separability
assumptions routinely made in the
literature. In particular, the main
categories of consumption (nondurables,
services, and durables) are not mutually
separable. We consider the implications
of our results for inference about
consumption based on the
representative-agent model.