NBER Working Papers and Publications
|September 2014||Integration of Micro- and Macrodata on Consumer Income and Expenditures|
in Measuring Economic Sustainability and Progress, Dale W. Jorgenson, J. Steven Landefeld, and Paul Schreyer, editors
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 employ...
|July 2014||Understanding the Relationship: CE Survey and PCE|
with William Passero, Thesia I. Garner
in Improving the Measurement of Consumer Expenditures, Christopher D. Carroll, Thomas F. Crossley, and John Sabelhaus, editors
There are two federal data series that refer to U.S. household expenditures. One uses the Consumer Expenditure Survey (CE), and the other personal consumption expenditures (PCE). Weights for the Consumer Price Index (CPI) are based on CE data, but some suggest that PCE be used instead. Researchers have tried to reconcile differences in scope and definitions in the CE and PCE. We review these differences along with aggregate estimates resulting from accounting for them. However, to compare trends in CE and PCE over time, a concordance of comparable items in both surveys is desirable. Independent exercises by federal agencies have created three different concordances. Here we discuss one such concordance and highlight similarities and differences in the CE and PCE along with trends in ratios...