Household Income,Demand, and Saving: Deriving Macro Data With Micro Data Concepts |
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Authors: | Barry Z Cynamon Steven M Fazzari |
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Institution: | 1. Federal Reserve Bank of St. Louis Center for Household Financial Stability;2. Departments of Economics and Sociology, Washington University, St. Louis |
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Abstract: | 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. |
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Keywords: | E01 E21 aggregate demand consumption household saving national income and product accounts |
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