The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Aggregation of Economic Relations

  • Walter D. Fisher
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_401

Abstract

A simplification or aggregation problem is faced by a research worker whenever he finds that his data are too numerous or in too much detail to be manageable and feels the need to reduce or combine the detailed data in some manner. He will want to use aggregative measures for his new groups. But what will be the effect of this procedure on his results? How can he choose among alternative procedures? In grouping his data and/or relations he must also decide how many groups to use; a smaller number is more manageable but will cause more of the original information to be lost. The research worker seeks a solution of this problem that will best serve his objectives, or those of some decision-marker who will use his results.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Walter D. Fisher
    • 1
  1. 1.