In this paper we present empirical evidence of the importance of aggregation bias in Euler equations for consumption … data). Even when these sources of aggregation bias are corrected for, however, the estimates of the elasticity of … intertemporal substitution obtained from aggregate consumption growth depend on expected productivity and income growth. This …

We show the importance of a dynamic aggregation bias in accounting for the PPP puzzle. We prove that established time …

when we can separate the effect on efficiency from the effect on distribution, that is when Gorman aggregation applies, the …

asset markets and indivisible labor supply. Imperfect aggregation manifests itself through preference shocks in the …

This paper develops a statistical aggregation procedure for the Frisch elasticity of labor supply. It allows for worker …

In 'Happiness and the Human Development Index: The Paradox of Australia,' Blanchflower and Oswald (2005) observe an … apparent puzzle: they claim that Australia ranks highly in the Human Development Index (HDI), but relatively poorly in … happiness. However, when we compare their happiness data with the HDI, Australia appears happier, not sadder, than its HDI score …