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In economics , an aggregate is a summary measure . It replaces a vector that is composed of many real numbers by a single real number, or a scalar . Consequently, there occur various problems that are inherent in the formulations that use aggregated variables.

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51-452: [REDACTED] Look up aggregation in Wiktionary, the free dictionary. Aggregation may refer to: Business and economics [ edit ] Aggregation problem (economics) Purchasing aggregation, the joining of multiple purchasers in a group purchasing organization to increase their buying power Community Choice Aggregation ,

102-409: A bacterium is a form of experimentation while studying planetary orbits through a telescope belongs to mere observation. In these cases, the mutated DNA was actively produced by the biologist while the planetary orbits are independent of the astronomer observing them. Applied to the history of science, it is sometimes held that ancient science is mainly observational while the emphasis on experimentation

153-478: A belief. So experience may be needed to acquire the relevant concepts in the example above, but once these concepts are possessed, no further experience providing empirical evidence is needed to know that the proposition is true, which is why it is considered to be justified a priori . In its strictest sense, empiricism is the view that all knowledge is based on experience or that all epistemic justification arises from empirical evidence. This stands in contrast to

204-606: A general definition of "intervention" applying to all cases, which is why it is sometimes outright rejected. Empirical evidence is required for a hypothesis to gain acceptance in the scientific community . Normally, this validation is achieved by the scientific method of forming a hypothesis, experimental design , peer review , reproduction of results , conference presentation, and journal publication . This requires rigorous communication of hypothesis (usually expressed in mathematics), experimental constraints and controls (expressed in terms of standard experimental apparatus), and

255-406: A good increases, ceteris paribus the demand for that good will change. Finally, if the distribution of income changes in favor of consumers who prefer the good in question, the demand will shift out. It is important to remember that factors that affect individual demand can also affect aggregate demand. However, net effects must be considered. The most important problem for micro- and macro-economics

306-668: A merging of syntactic constituents Aggregation (magazine) , a 2010–2012 Canadian online magazine See also [ edit ] Aggregate (disambiguation) Aggregator (disambiguation) , a web site or computer software that aggregates syndicated web content Agrégation , in French-speaking countries, higher-level competitive examinations for teachers and professors Category:Aggregation-based digital libraries , digital libraries that are primarily based on aggregation or harvesting of other digital libraries or repositories Composition (disambiguation) Topics referred to by

357-432: A posteriori knowledge or empirical knowledge , knowledge whose justification or falsification depends on experience or experiment. A priori knowledge, on the other hand, is seen either as innate or as justified by rational intuition and therefore as not dependent on empirical evidence. Rationalism fully accepts that there is knowledge a priori , which is either outright rejected by empiricism or accepted only in

408-407: A proposition, the subject has to be able to entertain this proposition, i.e. possess the relevant concepts. For example, experience is necessary to entertain the proposition "if something is red all over then it is not green all over" because the terms "red" and "green" have to be acquired this way. But the sense of dependence most relevant to empirical evidence concerns the status of justification of

459-540: A restricted way as knowledge of relations between our concepts but not as pertaining to the external world. Scientific evidence is closely related to empirical evidence but not all forms of empirical evidence meet the standards dictated by scientific methods . Sources of empirical evidence are sometimes divided into observation and experimentation , the difference being that only experimentation involves manipulation or intervention: phenomena are actively created instead of being passively observed. The concept of evidence

510-683: A single unit to increase network efficiency Route aggregation, the process of forming a supernet in computer networking Aggregation, a process by which Australian country television markets were combined in the late 1980s and 1990s; see Regional television in Australia Natural sciences and statistics [ edit ] Aggregation (ethology) , any gathering of organisms Aggregation of soil granules to form soil structure Particle aggregation , direct mutual attraction between particles (atoms or molecules) via van der Waals forces or chemical bonding The accumulation of platelets to

561-443: A that-clause, like "that something is burning". But it runs counter to the common practice of treating non-propositional sense-experiences, like bodily pains, as evidence. Its defenders sometimes combine it with the view that evidence has to be factive, i.e. that only attitudes towards true propositions constitute evidence. In this view, there is no misleading evidence. The olfactory experience of smoke would count as evidence if it

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612-441: Is a separate demand curve for every relative price. Kreps continues, "So what can we say about aggregate demand based on the hypothesis that individuals are preference/utility maximizers? Unless we are able to make strong assumptions about the distribution of preferences or income throughout the economy (everyone has the same homothetic preferences for example) there is little we can say”. The strong assumptions are that everyone has

663-400: Is an important advocate of the position that theory-ladenness concerning scientific paradigms plays a central role in science. A thing is evidence for a proposition if it epistemically supports this proposition or indicates that the supported proposition is true. Evidence is empirical if it is constituted by or accessible to sensory experience. There are various competing theories about

714-431: Is an independent idiosyncratic decision maker. This second problem is more serious. As David M. Kreps notes, “total demand will shift about as a function of how individual incomes are distributed even holding total (societal) income fixed. So it makes no sense to speak of aggregate demand as a function of price and societal income". Since any change in relative price brings about a redistribution of real income, there

765-455: Is asked the same question and says four pairs. Questioner goes back to A and says B is willing to buy four pairs of shoes, what do you think about that? A says if B has any interest in those shoes then I have none. Or A, not to be outdone by B, says "then I'll buy five pairs". And on and on. This problem can be eliminated by assuming that the consumers' tastes are fixed in the short run. This assumption can be expressed as assuming that each consumer

816-501: Is different from Wikidata All article disambiguation pages All disambiguation pages Aggregation problem The aggregation problem is the difficult problem of finding a valid way to treat an empirical or theoretical aggregate as if it reacted like a less-aggregated measure, say, about behavior of an individual agent as described in general microeconomic theory (see Representative agent , heterogeneity in economics ). The second meaning of "aggregation problem"

867-604: Is general consensus that everyday objects like books or houses are observable since they are accessible via unaided perception, but disagreement starts for objects that are only accessible through aided perception. This includes using telescopes to study distant galaxies, microscopes to study bacteria or using cloud chambers to study positrons. So the question is whether distant galaxies, bacteria or positrons should be regarded as observable or merely theoretical objects. Some even hold that any measurement process of an entity should be considered an observation of this entity. In this sense,

918-473: Is given more weight, although science done poorly is also subject to such biases, as in the example of p -hacking . In the philosophy of science, it is sometimes held that there are two sources of empirical evidence: observation and experimentation . The idea behind this distinction is that only experimentation involves manipulation or intervention: phenomena are actively created instead of being passively observed. For example, inserting viral DNA into

969-482: Is legitimate in other contexts. For example, anecdotal evidence from a friend about how to treat a certain disease constitutes empirical evidence that this treatment works but would not be considered scientific evidence. Others have argued that the traditional empiricist definition of empirical evidence as perceptual evidence is too narrow for much of scientific practice, which uses evidence from various kinds of non-perceptual equipment. Central to scientific evidence

1020-445: Is of central importance in epistemology and in philosophy of science but plays different roles in these two fields. In epistemology, evidence is what justifies beliefs or what determines whether holding a certain doxastic attitude is rational . For example, the olfactory experience of smelling smoke justifies or makes it rational to hold the belief that something is burning. It is usually held that for justification to work,

1071-440: Is only present in modern science and responsible for the scientific revolution . This is sometimes phrased through the expression that modern science actively "puts questions to nature". This distinction also underlies the categorization of sciences into experimental sciences, like physics, and observational sciences, like astronomy. While the distinction is relatively intuitive in paradigmatic cases, it has proven difficult to give

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1122-447: Is that it was arrived at by following scientific method in the context of some scientific theory . But people rely on various forms of empirical evidence in their everyday lives that have not been obtained this way and therefore do not qualify as scientific evidence. One problem with non-scientific evidence is that it is less reliable, for example, due to cognitive biases like the anchoring effect , in which information obtained earlier

1173-563: Is the Sonnenschein–Mantel–Debreu theorem , which shows that almost no properties of the individual preference are inherited to the aggregate demand functions. Sonnenschein-Mantel-Debreu theorem (SMD theorem) is a theorem for exchange economy that can be expressed in the following way: for a function that is continuous, homogeneous of degree zero, and in accord with Walras's law,there is an economy with at least as many agents as goods such that, for prices bounded away from zero,

1224-422: Is the summation of the individual consumer demand curves. The aggregation process preserves only two characteristics of individual consumer preference theory —continuity and homogeneity. Aggregation introduces three additional non-price determinants of demand: Thus if the population of consumers increases, ceteris paribus the demand curve will shift out; if the proportion of consumers with a strong preference for

1275-484: Is the theoretical difficulty in using and treating laws and theorems that include aggregate variables. A typical example is the aggregate production function . Another famous problem is Sonnenschein-Mantel-Debreu theorem . Most of macroeconomic statements comprise this problem. Examples of aggregates in micro- and macroeconomics relative to less aggregated counterparts are: Standard theory uses simple assumptions to derive general, and commonly accepted, results such as

1326-504: Is to account for the justification of knowledge pertaining to fields like mathematics and logic, for example, that 3 is a prime number or that modus ponens is a valid form of deduction. The difficulty is due to the fact that there seems to be no good candidate of empirical evidence that could justify these beliefs. Such cases have prompted empiricists to allow for certain forms of knowledge a priori, for example, concerning tautologies or relations between our concepts. These concessions preserve

1377-403: Is to hold that it is a mistake to identify the empirical with what is observable or sensible. Instead, it has been suggested that empirical evidence can include unobservable entities as long as they are detectable through suitable measurements. A problem with this approach is that it is rather far from the original meaning of "empirical", which contains the reference to experience. Knowledge or

1428-441: Is usually seen as excluding purely intellectual experiences, like rational insights or intuitions used to justify basic logical or mathematical principles. The terms empirical and observable are closely related and sometimes used as synonyms. There is an active debate in contemporary philosophy of science as to what should be regarded as observable or empirical in contrast to unobservable or merely theoretical objects. There

1479-404: Is usually understood as what is observable, in contrast to unobservable or theoretical objects. It is generally accepted that unaided perception constitutes observation, but it is disputed to what extent objects accessible only to aided perception, like bacteria seen through a microscope or positrons detected in a cloud chamber, should be regarded as observable. Empirical evidence is essential to

1530-756: Is what justifies beliefs or what determines whether holding a certain belief is rational . This is only possible if the evidence is possessed by the person, which has prompted various epistemologists to conceive evidence as private mental states like experiences or other beliefs. In philosophy of science , on the other hand, evidence is understood as that which confirms or disconfirms scientific hypotheses and arbitrates between competing theories. For this role, evidence must be public and uncontroversial, like observable physical objects or events and unlike private mental states, so that evidence may foster scientific consensus . The term empirical comes from Greek ἐμπειρία empeiría , i.e. 'experience'. In this context, it

1581-418: Is why it is more common to hold that all kinds of mental states, including stored but currently unconscious beliefs, can act as evidence. Various of the roles played by evidence in reasoning, for example, in explanatory, probabilistic and deductive reasoning, suggest that evidence has to be propositional in nature, i.e. that it is correctly expressed by propositional attitude verbs like "believe" together with

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1632-416: The justification of a belief is said to be a posteriori if it is based on empirical evidence. A posteriori refers to what depends on experience (what comes after experience), in contrast to a priori , which stands for what is independent of experience (what comes before experience). For example, the proposition that "all bachelors are unmarried" is knowable a priori since its truth only depends on

1683-604: The law of demand to explain market behavior. An example is the abstraction of a composite good . It considers the price of one good changing proportionately to the composite good, that is, all other goods. If this assumption is violated and the agents are subject to aggregated utility functions , restrictions on the latter are necessary to yield the law of demand. The aggregation problem emphasizes: Franklin Fisher notes that this has not dissuaded macroeconomists from continuing to use such concepts. The aggregate consumer demand curve

1734-427: The rationalist view, which holds that some knowledge is independent of experience, either because it is innate or because it is justified by reason or rational reflection alone. Expressed through the distinction between knowledge a priori and a posteriori from the previous section, rationalism affirms that there is knowledge a priori, which is denied by empiricism in this strict form. One difficulty for empiricists

1785-484: The evidence has to be possessed by the believer. The most straightforward way to account for this type of evidence possession is to hold that evidence consists of the private mental states possessed by the believer. Some philosophers restrict evidence even further, for example, to only conscious, propositional or factive mental states. Restricting evidence to conscious mental states has the implausible consequence that many simple everyday beliefs would be unjustified. This

1836-402: The exact definition of the terms evidence and empirical . Different fields, like epistemology, the sciences or legal systems, often associate different concepts with these terms. An important distinction among theories of evidence is whether they identify evidence with private mental states or with public physical objects. Concerning the term empirical , there is a dispute about where to draw

1887-457: The existence of metaphysical knowledge, while rationalists seek justification for metaphysical claims in metaphysical intuitions. Scientific evidence is closely related to empirical evidence. Some theorists, like Carlos Santana, have argued that there is a sense in which not all empirical evidence constitutes scientific evidence. One reason for this is that the standards or criteria that scientists apply to evidence exclude certain evidence that

1938-402: The fact that the available evidence often provides equal support to either theory and therefore cannot arbitrate between them. Theory-ladenness refers to the idea that evidence already includes theoretical assumptions. These assumptions can hinder it from acting as neutral arbiter. It can also lead to a lack of shared evidence if different scientists do not share these assumptions. Thomas Kuhn

1989-443: The function is the aggregate demand function for this economy. First, to sum the demand functions without other strong assumptions it must be assumed that they are independent – that is, that one consumer's demand decisions are not influenced by the decisions of another consumer. For example, A is asked how many pairs of shoes he would buy at a certain price. A says at that price I would be willing and able to buy two pairs of shoes. B

2040-468: The interior of the Sun is observable since neutrinos originating there can be detected. The difficulty with this debate is that there is a continuity of cases going from looking at something with the naked eye, through a window, through a pair of glasses, through a microscope, etc. Because of this continuity, drawing the line between any two adjacent cases seems to be arbitrary. One way to avoid these difficulties

2091-517: The joining of geographically contiguous communities to bypass a conventional energy utility monopoly and seek a greener energy service Computer science and telecommunication [ edit ] Aggregate function , a type of function in data processing Aggregation, a form of object composition in object-oriented programming Link aggregation , using multiple Ethernet network cables/ports in parallel to increase link speed Packet aggregation , joining multiple data packets for transmission as

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2142-427: The line between observable or empirical objects in contrast to unobservable or merely theoretical objects. The traditional view proposes that evidence is empirical if it is constituted by or accessible to sensory experience. This involves experiences arising from the stimulation of the sense organs, like visual or auditory experiences, but the term is often used in a wider sense including memories and introspection. It

2193-422: The meanings of the words used in the expression. The proposition "some bachelors are happy", on the other hand, is only knowable a posteriori since it depends on experience of the world as its justifier. Immanuel Kant held that the difference between a posteriori and a priori is tantamount to the distinction between empirical and non-empirical knowledge. Two central questions for this distinction concern

2244-539: The preference conditions (with the possible exception of continuity) simply do not apply to the aggregate function. Empirical Empirical evidence is evidence obtained through sense experience or experimental procedure. It is of central importance to the sciences and plays a role in various other fields, like epistemology and law . There is no general agreement on how the terms evidence and empirical are to be defined. Often different fields work with quite different conceptions. In epistemology, evidence

2295-505: The relevant sense of "experience" and of "dependence". The paradigmatic justification of knowledge a posteriori consists in sensory experience, but other mental phenomena, like memory or introspection, are also usually included in it. But purely intellectual experiences, like rational insights or intuitions used to justify basic logical or mathematical principles, are normally excluded from it. There are different senses in which knowledge may be said to depend on experience. In order to know

2346-498: The role of neutral arbiter between Newton's and Einstein's theory of gravitation by confirming Einstein's theory. For scientific consensus, it is central that evidence is public and uncontroversial, like observable physical objects or events and unlike private mental states. This way it can act as a shared ground for proponents of competing theories. Two issues threatening this role are the problem of underdetermination and theory-ladenness . The problem of underdetermination concerns

2397-432: The same tastes and that each person's tastes remain the same as income changes so additional income is spent in exactly the same way as before. Microeconomist Hal Varian reached a more muted conclusion: "The aggregate demand function will in general possess no interesting properties". However, Varian continued: "the neoclassical theory of the consumer places no restriction on aggregate behavior in general". This means

2448-419: The same term [REDACTED] This disambiguation page lists articles associated with the title Aggregation . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Aggregation&oldid=1145742969 " Category : Disambiguation pages Hidden categories: Short description

2499-434: The site of a wound to form a platelet plug or a thrombus Flocculation , a process where a solute comes out of solution in the form of floccules or flakes Overdispersion or statistical aggregation, where the variance of a distribution is higher than which we expect. Aggregation pheromone Protein aggregation , the aggregation of mis-folded proteins Other uses [ edit ] Aggregation (linguistics) ,

2550-426: The spirit of empiricism insofar as the restriction to experience still applies to knowledge about the external world. In some fields, like metaphysics or ethics , the choice between empiricism and rationalism makes a difference not just for how a given claim is justified but for whether it is justified at all. This is best exemplified in metaphysics, where empiricists tend to take a skeptical position, thereby denying

2601-509: Was produced by a fire but not if it was produced by a smoke generator. This position has problems in explaining why it is still rational for the subject to believe that there is a fire even though the olfactory experience cannot be considered evidence. In philosophy of science, evidence is understood as that which confirms or disconfirms scientific hypotheses and arbitrates between competing theories. Measurements of Mercury's "anomalous" orbit, for example, constitute evidence that plays

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