Academic macroeconomics and the research department of central banks have come to be dominated by Dynamic, Stochastic, General Equilibrium (DSGE) models based on micro-foundations of optimising representative agents with rational expectations. We argue that the dominance of this particular sort...

It is now quite common to have panels in which T, the number of time series observations on the N groups, is quite large. The usual practice is either to estimate N separate regressions and calculate the mean, which we call the Mean Group estimator, or to pool the data and assume the slope...