Our paper addresses the correction of the aggregation bias in linear rational expectations modelswhen there is some … unobserved micro-parameter heterogeneity and only macro data are available.Starting from Lewbel (1994), we propose two new …

The aggregation of individual random AR(1) models generally leads to an AR(∞∞) process. We provide two consistent …

The aggregation of individual random AR(1) models generally leads to an AR(∞) process. We provide two consistent …

mean of individual elasticities. The difference depends on the heterogeneity of the population and is quantified by a …

approaches found in the empirical literature on aggregation and the real exchange rate. In particular, we reconcile the …

. Chronic health conditions therefore increase in poor economic times. There is considerable spatial heterogeneity across local …

heterogeneity in revealed preferences.) Actual trade in the constructed economies using a tatonnement market institution closely …

This chapter 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 …