Ecological fallacy

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Updated: Aug 20, 2021

An erroneous interpretation of observed association between two variables at the aggregate level as an existence of such association at the individual level. High sample correlation at the aggregate level between two variables weakly correlated at the individual level, referred to as the ecological correlation, is caused by the removal of individual variation by the aggregation (the aggregation problem – see Cambridge school).

Reference: Oxford Press Dictonary of Economics, 5th edt.



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.