Estimating aggregate autoregressive processes when only macro data are available

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 124
Issue: 3
Pages: 341-347

Authors (2)

Jondeau, Eric (Université de Lausanne) Pelgrin, Florian (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The aggregation of individual random AR(1) models generally leads to an AR(∞) process. We provide two consistent estimators of aggregate dynamics based on either a parametric regression or a minimum distance approach for use when only macro data are available. Notably, both estimators allow us to recover some moments of the cross-sectional distribution of the autoregressive parameter. Both estimators perform very well in our Monte-Carlo experiment, even with finite samples.

Technical Details

RePEc Handle
repec:eee:ecolet:v:124:y:2014:i:3:p:341-347
Journal Field
General
Author Count
2
Added to Database
2026-01-25