This paper considers the problem of aggregation in the case of large linear dynamic panels, where each micro unit is … Pesaran (2003), an optimal aggregate function is derived, and the limiting behavior of the aggregation error is investigated … which ‘observed' inflation persistence at the aggregate level is due to aggregation and/or common unobserved factors. Our …

this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which … on border effects in domestic and international trade. Our theory shows that larger countries are systematically … associated with smaller border effects. The reason is that due to spatial frictions, aggregation across space increases the …

desirable policies and aim at manipulating information aggregation by misrepresenting their private information. We show that …

Despite the fact that many aggregates are nonlinear functions and the aggregation weights of many macroeconomic …, time-invariant aggregation weights. In this study a framework for nonlinear contemporaneous aggregation with possibly …