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 …

improves welfare outcomes. We also compute the optimal price index, which includes a positive weight on food prices but, unlike …

estimates that, spuriously, are statistically significant more often than they should. -- consistency ; Törnqvist index …

Italy, the use of such an index at national level may not be enough to have a clear picture of the human capital conditions … high heterogeneity into consideration, we develop a Human Capital Index for Italy disaggregated at provincial level. The …

effect of past benefit receipt increasing with the level of aggregation. The model can be improved considerably by permitting …