Econometrica: Jan 1959, Volume 27, Issue 1
The Aggregation Implications of Identifiable Structural Macrorelations
H. TheilThis article is concerned with the interpretation of econometric equation systems as systems of macrorelations. If an aggregate consumption function, say, is part of such a system and if it is also regarded as the macroecnomic analogue of a set of consumption functions of individual households, what is then the relationship between the macroeconomic consumption function and the underlying microeconomic consumption functions? The analysis, which is partly statistical, is carried out for linear equation systems.
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