Aggregation Problems of Macroeconomics
It is clear that macroeconomics, by its very nature, involves aggregation.1 The questions I seek to investigate in this paper are: With what aggregates should macroeconomics be concerned? How should these aggregates or macro-variables be related to the micro-variables from which they are derived? I shall be concerned with the ‘short-run’ rather than with problems of economic growth.
KeywordsAuxiliary Variable National Income Capital Good Final Variable Aggregation Problem
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