Models of Aggregate Economic Relationships that Account for Heterogeneity
In: Handbook of Econometrics
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 in income and wealth risks, and heterogeneity in market participation. Work in each area is illustrated using results from empirical data. The overall aim is to present specific models that connect individual behavior with aggregate statistics, as well as to discuss the principles for constructing such models.
|This chapter was published in: ||This item is provided by Elsevier in its series Handbook of Econometrics with number
6a-68.||Handle:|| RePEc:eee:ecochp:6a-68||Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description|
When requesting a correction, please mention this item's handle: RePEc:eee:ecochp:6a-68. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.