The availability of household-level data covering long periods of time makes it relatively easy to assess likely sources of aggregation bias. In this paper, we illustrate a promising methodology, which requires computing aggregation factors across households. If these factors are stable over time, aggregate data can be used to estimate micro-parameters.
Our application covers consumer demand equations, and dynamic consumption relations, but the methodology could be applied in a variety of different contexts.
Authors
CPP Co-Director
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
Research Associate University of Padua
Guglielmo is a Research Associate at the IFS and Professor in the Department of Economics at the Faculty of Statistics, Padua University.
Journal article details
- DOI
- 10.1016/0035-5054(93)90028-2
- Publisher
- Elsevier Ltd
- JEL
- D12, C43, D91
- Issue
- September 1993
Suggested citation
R, Blundell and C, Meghir and G, Weber. (1993). 'Aggregation and consumer behaviour' (1993)
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