Aggregated vs. disaggregated data in regression analysis: implications for inference

This note demonstrates why regression coefficients and their statistical significance differ across degrees of data aggregation. Given the frequent use of aggregated data to explain individual behavior, data aggregation can result in misleading conclusions regarding the economic behavior of individuals.Econometrics ; Regression analysis

Editor's introduction

Finance, Public ; Fiscal policy

Casino gaming and local employment trends

Casino gambling has become a major industry in the United States. Economic development, especially through increases in employment, is the primary justification for casino development in a local area. This article estimates the employment effects of casino gambling for six counties in the Midwest and southern United States using ARIMA forecasting models. The results suggest that rural counties that adopt casino gambling as a major industry experience significant gains in payroll and household employment. The effects are less pronounced in urban counties, partly due to the higher volatility of their employment data relative to those of rural counties.Gambling industry ; Employment (Economic theory)

Saving for a rainy day?

State finance ; Budget deficits

Income mobility

Income inequality statistics ignore temporal changes in household income.Income ; Households

A Federal Reserve System conference on research in applied microeconomics

This article summarizes papers presented at the System Applied Microeconomics Conference organized and hosted by the Federal Reserve Bank of St. Louis on May 5-6, 2011. This annual conference brings together economists from the Federal Reserve District Banks across the Federal Reserve System and the Federal Reserve Board to present their latest economic research.Microeconomics

U.S. income inequality: it's not so bad

Census data show that the income of the rich is growing faster than the income of the poor. But such common measures exaggerate the degree of income inequality. In addition, income inequality is the result of, and not a detriment to, a well-functioning economy.Income distribution