New method predicts economic trends more accurately, revolutionizing forecasting.
The article explores how to make more accurate predictions using aggregate data compared to individual data. The researchers suggest that using a model based on aggregate variables can lead to better forecasts of the overall outcome. They found that in certain cases, using macro-level equations can be more reliable than using micro-level equations due to potential errors in the individual data. This approach can be particularly useful in economic applications where there may be uncertainties in classifying products or industries.