Abstract
Aggregation refers to the connection between economic interactions at the micro and the macro levels. The micro level refers to the behaviour of individual economic agents. The macro level refers to the relationships that exist between economy-wide totals, averages or other economic aggregates. For instance, in a study of savings behaviour refers to the process that an individual or household uses to decide how much to save out of current income, whereas the aggregates are total or per-capita savings and income for a national economy or other large group. The econometrics of aggregation refers to modelling with the individual-aggregate connection in mind, creating a framework where information on individual behaviour together with co-movements of aggregates can be used to estimate a consistent econometric model.
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Stoker, T.M. (2008). Aggregation (Econometrics). In: Durlauf, S.N., Blume, L.E. (eds) The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-58802-2_18
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DOI: https://doi.org/10.1007/978-1-349-58802-2_18
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