A practical log‐linear aggregation method with examples: heterogeneous income growth in the USA
实用的对数线性加总方法:美国异质性收入增长示例
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…