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

17 Pages Posted: 6 Jun 2020

See all articles by Barry Z. Cynamon

Barry Z. Cynamon

Better Future Forward; Jain Family Institute

Steven M. Fazzari

affiliation not provided to SSRN

Multiple version iconThere are 3 versions of this paper

Date Written: March 2017

Abstract

We develop adjustments to align the NIPA measures of key household variables with cash flow concepts that reflect household budgets and actual demand generated by households. The adjusted variables have substantially different behaviors across time than NIPA measures 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 definitions. Indeed the adjusted cash flow measure of income eliminates much of the gap between micro data income variables and NIPA household income.

Keywords: aggregate demand, consumption, household, saving, 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 2017). Review of Income and Wealth, Vol. 63, Issue 1, pp. 53-69, 2017, Available at SSRN: https://ssrn.com/abstract=3619305 or http://dx.doi.org/10.1111/roiw.12206

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

affiliation not provided to SSRN

No Address Available

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