- Aggregation problem
An "aggregate" in
economicsis a summary measure describing a market or economy. The aggregation problem refers to the difficulty of treating an empiricalor theoretical aggregate as if it reacted like a less-aggregated measure, say, about behavior of an individual agent as described in general microeconomic theory(Fisher, 1987, p. 54). Examples of aggregates in micro- and macroeconomicsrelative to less aggregated counterparts are:
* food vs. apples
price leveland real GDPvs. the price and quantity of apples
capital stockfor the economy vs. the value of computers of a certain type and the value of steam shovels
money supplyvs. paper currency
* the general unemployment rate vs. the unemployment rate of civil engineers. Standard theory uses simple assumptions to derive general, and commonly accepted, results such as the
law of demandto explain market behavior. An example is the abstraction of a composite good. It considers the price of one good changing proportionately to the composite good, that is, all other goods. If this assumption is violated and the agents are subject to aggregated utility functions, restrictions on the latter are necessary to yield the law of demand. The aggregation problem emphasizes:
* how broad such restrictions are in microeconomics
* that use of broad factor inputs ('labor' and 'capital'), real 'output', and 'investment', as if there was only a single such aggregate is without a solid foundation for rigorously deriving analytical results. Franklin Fisher (1987, p. 55) notes that this has not dissuaded macroeconomists from continuing to use such terms.
Cambridge capital controversy
* "The Methodology of Positive Economics"
Real versus nominal value
Social choice theory
*Franklin M. Fisher (1987). "aggregation problem," "The ", v. 1, pp. 53-55.
* Jesus Felipe and Franklin M. Fisher (2008). "aggregation (production)," "
The New Palgrave Dictionary of Economics, 2nd Edition". [http://www.dictionaryofeconomics.com/article?id=pde2008_A000059&q=aggregation%20(production)&topicid=&result_number=1 Abstract.]
* John R. Hicks (1939, 2nd ed. 1946). "
Value and Capital".
* Werner Hildenbrand (2008). "aggregation (theory)," "The New Palgrave Dictionary of Economics", 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_A000247&q=aggregation&topicid=&result_number=4 Abstract.]
* Thomas M. Stoker (2008). "aggregation (econometrics)," "The New Palgrave Dictionary of Economics", 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_A000234&q=aggregation&topicid=&result_number=2 Abstract.]
Wikimedia Foundation. 2010.
Look at other dictionaries:
Ordered Weighted Averaging (OWA) Aggregation Operators — Introduced by Ronald R. Yager, the Ordered Weighted Averaging operators, commonly called OWA operators, provide a parameterized class of mean type aggregation operators. Many notable mean operators such as the max, arithmetic average, median and… … Wikipedia
Link aggregation — between a switch and a server Link aggregation or trunking or link bundling or Ethernet/network/NIC bonding or NIC teaming are computer networking umbrella terms to describe various methods of combining (aggregating) multiple network… … Wikipedia
Link Aggregation — ist ein beim IEEE geläufiger Begriff aus dem Bereich IEEE 802 (genauer: 802.3ad, seit 2008 802.1AX) und bezeichnet ein Verfahren zur Bündelung mehrerer physikalischer LAN Schnittstellen zu einem logischen Kanal. Die ersten Implementierungen… … Deutsch Wikipedia
Port Aggregation — Die Artikel Etherchannel, Link Aggregation, Bündelung und Bündel (Nachrichtentechnik) überschneiden sich thematisch. Hilf mit, die Artikel besser voneinander abzugrenzen oder zu vereinigen. Beteilige dich dazu an der Diskussion über diese… … Deutsch Wikipedia
Route aggregation — is a technique that is used to conserve the problem of address space exhaustion as well as to limit the amount of routing information being advertised. The term Classless Inter Domain Routing (CIDR) is a route aggregation technique that was used… … Wikipedia
Communal aggregation — is the phenomenon of aggregation of the hydrophobic proteins to come closer and form the bonding between them, so as to reduce the total area exposed to water. It is a very common problem with the hydrophobic protein to make aggregates. Such… … Wikipedia
Modifiable areal unit problem — The modifiable areal unit problem (MAUP) is a source of statistical bias that can radically affect the results of statistical hypothesis tests. It affects results when point based measures of spatial phenomena (e.g., population density) are… … Wikipedia
Cambridge capital controversy — The Cambridge capital controversy was a 1960s debate in economics concerning the nature and role of capital goods (or means of production). The name arises because of the location of those most involved in the controversy: the debate was largely… … Wikipedia
Representative agent — Economists use the term representative agent to refer to the typical individual of a certain type (for example, the typical consumer, or the typical firm). More technically, an economic model is said to have a representative agent if all agents… … Wikipedia
William A. Barnett — William Arnold Barnett is an American economist whose current work is in the field of chaos, bifurcation, and nonlinearity in socioeconomic contexts, as well as the study of the aggregation problem.Barnett received his B.S. degree from M.I.T.,… … Wikipedia