Skip to Main content Skip to Navigation
Journal articles

A Practical Log-Linear Aggregation Method with Examples: Heterogeneous Income Growth in the USA

Abstract : A practical aggregation method for heterogeneous log-linear functions is presented. Inequality measures are employed in the construction of a simple but exact aggregate representation of an economy. Three macroeconomic applications are discussed: the aggregation of the Lucas supply function, the time-inconsistent behaviour of an egalitarian social planner facing heterogeneous discount rates, and the case of a simple heterogeneous growth model. In the latter application, aggregate CPS data is used to show that the slowdown that followed the first oil shock is worse than usually thought, and that the "new economy" growth resurgence is not as strong as it appears.
Document type :
Journal articles
Complete list of metadata

https://halshs.archives-ouvertes.fr/halshs-00743830
Contributor : Pedro Albuquerque <>
Submitted on : Sunday, October 21, 2012 - 1:06:32 AM
Last modification on : Friday, July 17, 2020 - 9:00:44 AM

Links full text

Identifiers

Collections

Citation

Pedro Albuquerque. A Practical Log-Linear Aggregation Method with Examples: Heterogeneous Income Growth in the USA. Journal of Applied Econometrics, Wiley, 2003, 18 (6), pp.665-678. ⟨10.1002/jae.715⟩. ⟨halshs-00743830⟩

Share

Metrics

Record views

246