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The Role of Heterogeneous Demand for Temporal and Structural Aggregation Bias Author info | Abstract | Publisher info | Download info | Related research | Statistics Bente Halvorsen and Bodil M. Larsen () (Statistics Norway )
Differences in estimated parameters depending on the frequency of aggregate data have been reported in several fields of economic research. Some differences are due to seasonal variations in demand, but temporal aggregation bias is reported even in seasonally adjusted models. These biases have been explained by time-nonseparable preferences and excluded dynamic components. We show that it is possible to observe temporal aggregation bias in a seasonally adjusted static model even when preferences are time-separable. This is because of changes in the distribution of exogenous factors describing the variation in seasonal demand across consumers. To show this, we develop a method for aggregation based on an Almost Ideal Demand System, where demand response varies across both consumers and time
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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number
537.
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Date of creation: Apr 2008Date of revision:
Handle: RePEc:ssb:dispap:537Contact details of provider: Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway Phone: (+47) 21 09 00 00 Fax: (+47) 21 09 49 73 Email: Web page: http://www.ssb.no More information through EDIRC
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Keywords: Temporal aggregation ; Consumer demand ; Heterogeneity ; Other versions of this item:
Find related papers by JEL classification: C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation D1 - Microeconomics - - Household Behavior
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Richard Blundell & Thomas M. Stoker, 2005.
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