The Superior Measure of PSID Consumption: An Update
10 Pages Posted: 29 Sep 2010
Date Written: May 10, 2010
This paper provides an update of Skinner (1987) predicted consumption measure for households in the Panel Study of Income Dynamics from 1980 to 2003. More than 80 percent of the variance in total non-durable consumption is explained by three expenditure components.
Keywords: Consumption, Expenditure, PSID, CEX, Household Behavior
JEL Classification: D10, D12, C23, E21
Suggested Citation: Suggested Citation