CFDP 2011

Information Limits of Aggregate Data

Author(s): 
Ray C. Fair

Publication Date: July 2015

Pages: 50

Abstract: 

This paper uses a small model in the Cowles Commission (CC) tradition to examine the limits of aggregate data. It argues that more can be learned about the macroeconomy following the CC approach than the reduced form and VAR approaches allow, but less than the DSGE approach tries to do.

Keywords: 

Aggregate data, Macro models