NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Integration of Micro and Macro Data on Consumer Income and Expenditures

Clinton P. McCully


This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.

Chapter in forthcoming NBER book Measuring Economic Sustainability and Progress, Dale W. Jorgenson, J. Steven Landefeld, and Paul Schreyer, editors
Conference held August 6-8, 2012
Forthcoming from University of Chicago Press
in NBER Book Series Studies in Income and Wealth

Macro estimates of household income and expenditures from the Bureau of Economic Analysis measure aggregate and per capita averages, but provide no information on the distribution of income, which is important in the measurement of economic well-being. Micro estimates of household income and expenditures have information on income distribution and other household breakdowns, but are confined to the measurement of cash income and direct household expenditures, and suffer from problems of non-reporting, underreporting, and underrepresentation of high-income households. Integrated estimates of household income and expenditures provide estimates of income distribution consistent with the more accurate and broadly-defined macro values, which include third-party payments, such as those by employers and government for health care, and account for the effects of income taxes. Integrated estimates of household disposable income show a lesser degree of income inequality than do micro estimates from the Current Population Survey Annual Social and Economic Supplement, largely because of the inclusion of in-kind government social benefits, primarily for health care, that disproportionately benefit lower-income households, and of the exclusion from income of personal income taxes, which are paid disproportionately by high-income households. Changes between 2006 and 2010 show a small narrowing in income discrepancies, reflecting declines in self-employment and property income of the top quintile and increases in government social benefits and lower taxes for the lowest quintile.

download in pdf format
   (637 K)

email paper

This paper is available as PDF (637 K) or via email.

This paper was revised on February 11, 2013

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded these:
Carroll Representing Consumption and Saving Without A Representative Consumer
Henriques and Hsu Analysis of Wealth Using Micro and Macro Data: A Comparison of the Survey of Consumer Finances and Flow of Funds Accounts
Acemoglu and Robinson w12108 Persistence of Power, Elites and Institutions
Mohnen, Mairesse, and Dagenais w12280 Innovativity: A Comparison Across Seven European Countries
Cagetti, Holmquist, Lynn, McIntosh, and Wasshausen The Integrated Macroeconomic Accounts of the United States
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us