Household Income, Demand, and Saving: Deriving Macro Data with Micro Data Concepts
47 Pages Posted: 5 Feb 2013 Last revised: 21 Mar 2015
Date Written: March 20, 2015
We develop adjustments to align the NIPA measures of key household flows with cash flow concepts that better reflect household budgets and actual demand generated by households. The adjustments significantly change the behavior across time 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 imputations. Indeed the adjusted cash flow measure of income eliminates much of the shortfall of CPS, SCF, and PSID income relative to NIPA household income.
Keywords: Aggregate Demand, Consumption, Saving, Household, National Income and Product Accounts
JEL Classification: E01, E21
Suggested Citation: Suggested Citation