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Add news post: Gorman aggregation lecture (December 2025) (#180)
* Add news post: Gorman aggregation lecture (December 2025) * Update _posts/2025-12-28-gorman-aggregation-lecture.md Co-authored-by: Copilot <175728472+Copilot@users.noreply.github.com> --------- Co-authored-by: Copilot <175728472+Copilot@users.noreply.github.com>
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title: "New Lecture: Gorman Aggregation with Heterogeneous Households"
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author: QuantEcon
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excerpt: A new lecture on Gorman aggregation has been added to the Advanced Quantitative Economics series, exploring conditions under which heterogeneous household economies can be represented by a single representative agent.
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We're pleased to announce a new lecture on [Advanced Quantitative Economics with Python](https://python-advanced.quantecon.org/): **[Gorman Aggregation with Heterogeneous Households](https://python-advanced.quantecon.org/gorman_aggregation.html)**.
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## About the Lecture
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This lecture explores one of the fundamental questions in macroeconomic theory: under what conditions can an economy with diverse households be analyzed as if there were a single representative consumer?
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Key topics covered include:
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- **Gorman aggregation conditions**: When household demand can be aggregated regardless of income distribution
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- **Linear Engel curves**: The role of quasi-homothetic preferences in enabling aggregation
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- **Practical implications**: Understanding when representative agent models are appropriate approximations
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## Why This Matters
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Representative agent models are ubiquitous in macroeconomics, but their validity depends on specific conditions that aren't always met. This lecture provides the theoretical foundations for understanding:
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- When aggregation is justified
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- What heterogeneity matters for aggregate outcomes
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- How to think about distributional effects in macro models
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The lecture includes computational examples and exercises to reinforce the theoretical concepts.
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## Contributors
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This lecture was developed by Humphrey Yang and Thomas Sargent.

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