Publisher's Synopsis
Aggregation is a significant problem in much economic theory and in most applied work in economic modelling. A proper understanding of the problem and the methods chosen to resolve it are crucial to the design and evaluation of applied research in economics. In this book, leading theorists and applied economists address themselves to the key questions of aggregation: what level of aggregation should be chosen in applied research?; when is an aggregate approach justified?; is there an optimal level of disaggregation?; does disaggregation improve predictive performance? and why?; how can aggregation bias be detected?; how does aggregation obscure casual relationships?; can macro-equations be derived from non-linear micro-equations?; what methods are available for linking macro and micro models? and how do they work? These issues are covered both theoretically and in wide-ranging applications.
