The aim of this study is to assess empirically to what extent the degree of heterogeneity of consumers’ inflation …

individual heterogeneity in both intercepts and slope coefficients, and (iii) unbalanced panel data, i.e., panel data where the …

For a panel data regression equation with two-way unobserved heterogeneity, individual-specific and period …

bias. We show that grouping can also create substantial aggregation bias, calling into question how well pseudo-panels can … both metrics are above certain recommended values, the biases from aggregation and sampling error are minimised, meaning …

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 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 …