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 … exits out of the consumption pool. This results in a negative bias caused by an omitted variable correlated to productivity …

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 … changes. As a result, the bias in the representative-agent model's policy predictions is large compared to the length of …

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

distribution of VAR impulse response estimators is undermined by the estimator’s bias. A natural conjecture is that impulse … estimators tend to have both higher bias and higher variance, resulting in pointwise impulse response confidence intervals that …