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

53 Pages Posted: 1 Aug 2015

See all articles by Barry Z. Cynamon

Barry Z. Cynamon

Better Future Forward; Jain Family Institute

Steven M. Fazzari

Washington University in St. Louis

Multiple version iconThere are 2 versions of this paper

Date Written: June 3, 2014

Abstract

We develop adjustments to align the NIPA measures of key household flows with cash flow concepts that better reflect household budgets and demand. The adjustments significantly change important macroeconomic time series and give different perspective on 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 most of the shortfall of CPS, SCF, and PSID of CPS income relative to NIPA household income.

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 (June 3, 2014). Institute for New Economic Thinking Working Paper Series No. 13. Available at SSRN: https://ssrn.com/abstract=2638076 or http://dx.doi.org/10.2139/ssrn.2638076

Barry Z. Cynamon (Contact Author)

Better Future Forward ( email )

400 N Washington St
Suite 203
Falls Church, VA 22046
United States

HOME PAGE: http://www.betterfutureforward.org

Jain Family Institute ( email )

568 Broadway
Suite 601
New York, NY 10012
United States

Steven M Fazzari

Washington University in St. Louis ( email )

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

Register to save articles to
your library

Register

Paper statistics

Downloads
24
Abstract Views
363
PlumX Metrics