• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Some solutions to aggregation problems
        • Demand models and exact aggregation
        • Market participation and wages
        • Consumption and risk environments
      • Micro to macro and vice versa
        • Aggregation as a solution to microeconometric estimation
        • Can macroeconomic interaction solve aggregation problems?
      • Future progress
    • Bibliography
    • How to cite this article

aggregation (econometrics)

Thomas M. Stoker
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

The econometrics of aggregation is about modelling the relationship between individual (micro) behaviour and aggregate (macro) statistics, so that data from both levels can be used for estimation and inference about economic parameters. Practical models must address three types of individual heterogeneity – in income and preferences, in wealth and income risk, and in market participation. This entry discusses recent solutions to these problems in the context of demand analysis, consumption modelling and labour supply. Also discussed is work that uses aggregation structure to solve microeconometric estimation problems, and work that addresses whether macroeconomic interactions provide approximate solutions to aggregation problems.
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Keywords

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Article

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How to cite this article

Stoker, Thomas M. "aggregation (econometrics)." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 20 August 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_A000234> doi:10.1057/9780230226203.0018

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