Friday, January 27, 2006

Aggregation of Euro area data

A look at different methods of aggregating euro area data.

On the aggregation of eurozone data: "Constructing eurozone aggregates is common practice in empirical studies. This study shows that the choice of aggregation method does not only matter on a theoretical basis. A brief study on eurozone money demand indicates the empirical importance of choosing the correct aggregation method as different aggregates give substantially different outcomes. "

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