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Heterogeneity and Aggregation

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Author Info
Richard Blundell
Thomas M. Stoker

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Abstract

This survey covers recent solutions to aggregation problems in three application areas, consumer demand analysis, consumption growth and wealth, and labor participation and wages. Each area involves treatment of heterogeneity and nonlinearity at the individual level. Three types of heterogeneity are highlighted: heterogeneity in individual tastes, heterogeneity in income and wealth risks and heterogeneity in market participation. Work in each area is illustrated using results from empirical data. The overall aim is to show how concerns faced by empirical researchers regarding aggregation can be addressed.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 43 (2005)
Issue (Month): 2 (June)
Pages: 347-391
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Handle: RePEc:aea:jeclit:v:43:y:2005:i:2:p:347-391

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  1. Heyman, Fredrik & Gustavsson Tingvall, Patrik & Sjöholm, Fredrik, 2006. "Is There Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data," Working Paper Series 674, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  2. Michal Myck & Leszek Morawski & Jerzy Mycielski, 2006. "Employment Fluctuations and Dynamics of the Aggregate Average Wage in Poland 1996 - 2003," Discussion Papers of DIW Berlin 545, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  3. Bente Halvorsen and Bodil M. Larsen, 2008. "The Role of Heterogeneous Demand for Temporal and Structural Aggregation Bias," Discussion Papers 537, Research Department of Statistics Norway. [Downloadable!]
  4. Frank T. Denton & Dean C. Mountain, 2007. "Exploring the Effects of Aggregation Error in the Estimation of Consumer Demand Elasticities," Social and Economic Dimensions of an Aging Population Research Papers 226, McMaster University. [Downloadable!]
  5. Kenneth D. Boyer & Stephen V. Burks, 2007. "Stuck in the Slow Lane: Traffic Composition and the Measurement of Labor Productivity in the U.S. Trucking Industry," IZA Discussion Papers 2576, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-1-7.


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