Information Content Of Regional Employment Data For Forecasting Aggregate Conditions
The authors consider whether disaggregated data enhances the efficiency of aggregate employment forecasts. Findings indicate that incorporating spatial interaction into a disaggregated forecasting
model lowers the out-of-sample mean-squared-error from a unvaried aggregate model by 70 percent at a five-year horizon.
Link
http://research.stlouisfed.org/wp/2004/2004-005.pdf