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Household Income, Demand, and Saving: Deriving Macro Data With Micro Data Concepts
Author(s) -
Cynamon Barry Z.,
Fazzari Steven M.
Publication year - 2017
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12206
Subject(s) - economics , macro , household income , survey data collection , personal income , cash flow , econometrics , macroeconomics , finance , computer science , geography , statistics , mathematics , archaeology , programming language
We develop adjustments to align the NIPA measures of key household variables with cash flow concepts that reflect household budgets and actual demand generated by households. The adjusted variables have substantially different behaviors across time than NIPA measures of household spending and saving. Furthermore, household income aggregated from micro data sets like the CPS , SCF , and PSID differs significantly from NIPA personal income. But the micro survey data likely reflect cash flow concepts rather than NIPA definitions. Indeed the adjusted cash flow measure of income eliminates much of the gap between micro data income variables and NIPA household income.