aggregation biases estimates of monetary policy transmission. We argue that the information mismatch between private agents and … the econometrician —the source of temporal aggregation bias —is equally important as the more studied mismatch between … policy model and show how temporal aggregation bias can exacerbate initial impulse response functions. Because our modeling …

usefully aggregated into a single sector model. Such an aggregation misleads the economist as to the economy's underlying …