Household Income, Demand, and Saving: Deriving Macro Data with Micro Data Concepts

47 Pages Posted: 5 Feb 2013 Last revised: 21 Mar 2015

Barry Z. Cynamon

Federal Reserve Bank of Saint Louis

Steven M. Fazzari

Washington University in St. Louis

Multiple version iconThere are 2 versions of this paper

Date Written: March 20, 2015

Abstract

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

Cynamon, Barry Z. and Fazzari, Steven M., Household Income, Demand, and Saving: Deriving Macro Data with Micro Data Concepts (March 20, 2015). Available at SSRN: https://ssrn.com/abstract=2211896 or http://dx.doi.org/10.2139/ssrn.2211896

Barry Z. Cynamon

Federal Reserve Bank of Saint Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

Steven M Fazzari (Contact Author)

Washington University in St. Louis ( email )

One Brookings Drive
St. Louis, MO 63130
United States
314-935-5693 (Phone)
314-935-4156 (Fax)

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