Abstract

https://ssrn.com/abstract=2211896
 


 



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


Barry Z. Cynamon


Federal Reserve Bank of Saint Louis

Steven M. Fazzari


Washington University in St. Louis

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.

Number of Pages in PDF File: 47

Keywords: Aggregate Demand, Consumption, Saving, Household, National Income and Product Accounts

JEL Classification: E01, E21


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Date posted: February 5, 2013 ; Last revised: March 21, 2015

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

Contact Information

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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