Aggregation in Economic Research

1. Front Matter

   Pages i-xiv

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2. Introduction

   1. Front Matter

      Pages 1-1

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   2. Introduction

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 3-14

3. On Theory

   1. Front Matter

      Pages 15-15

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   2. Aggregation without Side Conditions

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 17-62

   3. Aggregation of Production Functions under Optimum Conditions

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 63-87

   4. Aggregation and Individual Preferences

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 88-151

   5. Aggregation and the Distribution of Individual Characteristics

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 152-183

   6. Linear Aggregation and Estimation

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 184-210

   7. Aggregation Over Arguments of a Function

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 211-222

4. Some Applications

   1. Front Matter

      Pages 223-223

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   2. Aggregation and Consumer Behaviour

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 225-270

   3. Collective Choice and Macro-Economic Policy

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 271-298

5. Epilogue

   1. Front Matter

      Pages 299-299

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   2. Optimal aggregation?

      • J. Van Daal, A. H. Q. M. Merkies

      Pages 301-306

6. Back Matter

   Pages 307-321

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Our interest in problems of aggregation originates from about seven years ago when we became involved in research in the field of applied microeconomics. To our astonishment a vast majority of researchers in this area took it for granted that their, mostly thoroughly derived, micro models could meaningfully be confronted with per capita data. Nany of them did not even realize - at least they gave no utterance to it - that applying macro data in micro models raises considerable problems. Those who did mention the difficulty, almost always belittled its importance. Fortunately, there are noteworthy exceptions. Thinking about aggregation raises at least two questions: "Why or why not aggregate?" and "How to aggregate and, in particular, to what degree?" General answers to these questions can only be given in uninformative wording (as many assertions in economics): one aggregates for the sake of tractability, because of the lack of (individual) data, to avoid or to reduce multicollineartiy, to save degrees of freedom; one abstains from aggregation to avoid loss of information, to avoid aggregation biases and one aggregates such and to such degree as to bypass or reduce the drawbacks mentioned above.

• economic policy
• interview
• microeconomics
• production
• simulation

• Erasmus University, Rotterdam, The Netherlands

  J. Daal

• Free University, Amsterdam, The Netherlands

  A. H. Q. M. Merkies

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