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Aggregation refers to the connection between economic interactions at the micro and the macro levels The micro level refers to the behaviour of in- dividual economic agents The macro level refers to the relationships that exist between economy-wide totals, averages or other economic aggregates

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Economists have long considered the appropriate unit of analysis for empirical work Should we analyze individuals, households, firms, states or countries?

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Journal of Agricultural and Resource Economics 21(2):247-262 expenditure aggregation bias when estimating the aggregate AIDS model with time-

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Introduction Econometric method interprets economic time series as resulting from the choices of private agents interacting in well-organized markets Individual