scholarly journals Estimates of Annual Consumption Expenditures and Its Major Components in the PSID in Comparison to the CE

2014 ◽  
Vol 104 (5) ◽  
pp. 132-135 ◽  
Author(s):  
Patricia Andreski ◽  
Geng Li ◽  
Mehmet Zahid Samancioglu ◽  
Robert Schoeni
Keyword(s):  
Data Collection ◽  
Panel Study ◽  
Household Surveys ◽  
Consumer Expenditure ◽  
Income Dynamics ◽  
Consumption Expenditures ◽  
Consumer Expenditure Survey ◽  
Expenditure Data ◽  
Annual Consumption ◽  
The Mean

Comprehensive data on consumption expenditures have historically not been collected in US longitudinal household surveys. The Panel Study of Income Dynamics (PSID) expanded its expenditure data collection in 1999 and 2005. We examine these new expenditure data, highlighting several unique features of the PSID data. We then compare the PSID expenditure data with those in the Consumer Expenditure Survey (CE). We document that the PSID data cover nearly the entire scope of the CE data, and the mean statistics of total expenditures compare favorably between the two surveys. However, significant differences remain for certain expenditure categories.

Habit Formation in Consumer Preferences: Evidence from Panel Data

2000 ◽  
Vol 90 (3) ◽  
pp. 391-406 ◽  
Author(s):  
Karen E Dynan
Keyword(s):  
Habit Formation ◽  
Consumer Preferences ◽  
Panel Study ◽  
Consumer Expenditure ◽  
Income Dynamics ◽  
Household Data ◽  
Consumer Expenditure Survey ◽  
Consumption Data ◽  
Food Consumption Data ◽  
Annual Frequency

This paper tests for the presence of habit formation using household data. A simple model of habit formation implies a condition relating the strength of habits to the evolution of consumption over time. When the condition is estimated with food consumption data from the Panel Study on Income Dynamics (PSID), the results yield no evidence of habit formation at the annual frequency. This finding is robust to a number of changes in the specification. It also holds for several proxies for nondurables and services consumption created by combining PSID variables with weights estimated from Consumer Expenditure Survey data. (JEL D12, D91, E21)

scholarly journals What Accounts for the Variation in Retirement Wealth Among U.S. Households?

2001 ◽  
Vol 91 (4) ◽  
pp. 832-857 ◽  
Author(s):  
B. Douglas Bernheim ◽  
Jonathan Skinner ◽  
Steven Weinberg
Keyword(s):  
Time Preference ◽  
Panel Study ◽  
Hyperbolic Discounting ◽  
Risk Tolerance ◽  
Wealth Accumulation ◽  
Consumer Expenditure ◽  
Income Dynamics ◽  
Consumer Expenditure Survey ◽  
Saving And Wealth ◽  
Retirement Wealth

Even among households with similar socioeconomic characteristics, saving and wealth vary considerably. Life-cycle models attribute this variation to differences in time preference rates, risk tolerance, exposure to uncertainty, relative tastes for work and leisure at advanced ages, and income replacement rates. These factors have testable implications concerning the relation between accumulated wealth and the shape of the consumption profile. Using the Panel Study of Income Dynamics and the Consumer Expenditure Survey, we find little support for these implications. The data are instead consistent with “rule of thumb,” “mental accounting,” or hyperbolic discounting theories of wealth accumulation. (JEL D1, D91, E21)

scholarly journals The Effects of a Between-Wave Incentive Experiment on Contact Update and Production Outcomes in a Panel Study

2013 ◽  
Vol 29 (2) ◽  
pp. 261-276 ◽  
Author(s):  
Katherine A. McGonagle ◽  
Robert F. Schoeni ◽  
Mick P. Couper
Keyword(s):  
Data Collection ◽  
Overall Response Rate ◽  
Response Rate ◽  
Panel Study ◽  
Response Rates ◽  
Income Dynamics ◽  
Overall Response ◽  
Percentage Points ◽  
Contact Information ◽  
The U.S

Abstract Since 1969, families participating in the U.S. Panel Study of Income Dynamics (PSID) have been sent a mailing asking them to update or verify their contact information in order to keep track of their whereabouts between waves. Having updated contact information prior to data collection is associated with fewer call attempts, less tracking, and lower attrition. Based on these advantages, two experiments were designed to increase response rates to the between wave contact mailing. The first experiment implemented a new protocol that increased the overall response rate by 7-10 percentage points compared to the protocol in place for decades on the PSID. This article provides results from the second experiment which examines the basic utility of the between-wave mailing, investigates how incentives affect article cooperation to the update request and field effort, and attempts to identify an optimal incentive amount. Recommendations for the use of contact update strategies in panel studies are made.

scholarly journals The Intergenerational Correlation of Consumption Expenditures

2014 ◽  
Vol 104 (5) ◽  
pp. 136-140 ◽  
Author(s):  
Kerwin Kofi Charles ◽  
Sheldon Danziger ◽  
Geng Li ◽  
Robert Schoeni
Keyword(s):  
Risk Sharing ◽  
Panel Study ◽  
Correlation Coefficients ◽  
Consumption Smoothing ◽  
Income Dynamics ◽  
Family Risk ◽  
Access To Credit ◽  
Consumption Expenditures ◽  
Intergenerational Correlation ◽  
Using Data

Using data recently collected by the Panel Study of Income Dynamics, we find that the intergenerational correlation in expenditures is no larger than that in income, suggesting limited intra-family risk-sharing. On the other hand, even after controlling for the intergenerational correlation in income, the expenditures correlation remains significant. This suggests that other factors such as preferences, access to credit, and non-pecuniary inter vivos transfers potentially played a role in consumption smoothing across generations within a family. We also find that the correlation coefficients estimated using food and imputed total expenditures are smaller than that estimated using the measured total expenditures.

AN ANALYSIS OF FEMALE LABOR SUPPLY, HOME PRODUCTION, AND HOUSEHOLD CONSUMPTION EXPENDITURES

2018 ◽  
Vol 84 (3) ◽  
pp. 257-307
Author(s):  
Kellie Forrester ◽  
Jennifer Klein
Keyword(s):  
Panel Study ◽  
The United States ◽  
Female Employment ◽  
Home Production ◽  
Consumer Expenditure ◽  
Women's Labor ◽  
American Time Use Survey ◽  
Consumption Expenditures ◽  
Time Use Survey ◽  
Population Ratio

Abstract:The United States saw a rapid transformation of its labor market when the female employment to population ratio nearly doubled from 1950 to 2000. As women shift their hours from the home sector to the market sector, goods that were previously produced in the home may be replaced by market services. This paper uses the Panel Study for Income Dynamics, Consumer Expenditure Survey, and the American Time Use Survey to analyze the extent to which households replace home production with purchased market services, and how the relationship between men’s and women’s labor supplies affects these decisions. We show that women who are employed spend less time on home production activities that have close market alternatives than women who are not employed. Additionally, expenditures on market services that can replace home production are higher for married households in which the woman is employed compared to those with nonworking women.

scholarly journals Consumption Inequality and Partial Insurance

2008 ◽  
Vol 98 (5) ◽  
pp. 1887-1921 ◽  
Author(s):  
Richard Blundell ◽  
Luigi Pistaferri ◽  
Ian Preston
Keyword(s):  
Panel Study ◽  
Consumer Expenditure ◽  
Income Shocks ◽  
Income Dynamics ◽  
Transitory Shocks ◽  
Poor Households ◽  
Permanent Shocks ◽  
College Educated ◽  
Imputation Procedure ◽  
Partial Insurance

This paper examines the link between income and consumption inequality. We create panel data on consumption for the Panel Study of Income Dynamics using an imputation procedure based on food demand estimates from the Consumer Expenditure Survey. We document a disjuncture between income and consumption inequality over the 1980s and show that it can be explained by changes in the persistence of income shocks. We find some partial insurance of permanent shocks, especially for the college educated and those near retirement. We find full insurance of transitory shocks except among poor households. Taxes, transfers, and family labor supply play an important role in insuring permanent shocks. (JEL D12, D31, D91, E21)

scholarly journals Panel Conditioning in the U.S. Consumer Expenditure Survey

2021 ◽  
Vol 37 (1) ◽  
pp. 53-69
Author(s):  
Stephanie Eckman ◽  
Ruben Bach
Keyword(s):  
Data Collection ◽  
Data Quality ◽  
Consumer Expenditure ◽  
Consumer Expenditure Survey ◽  
Panel Conditioning ◽  
Interview Survey ◽  
The U.S ◽  
Over Time ◽  
Analyze Data

Abstract The U.S. Consumer Expenditure Interview Survey asks many filter questions to identify the items that households purchase. Each reported purchase triggers follow-up questions about the amount spent and other details. We test the hypothesis that respondents learn how the questionnaire is structured and underreport purchases in later waves to reduce the length of the interview. We analyze data from 10,416 four-wave respondents over two years of data collection. We find no evidence of decreasing data quality over time; instead, panel respondents tend to give higher quality responses in later waves. The results also hold for a larger set of two-wave respondents.

Consumption Mobility in the United States: Evidence from Two Panel Data Sets

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Jonathan D Fisher ◽  
David S Johnson
Keyword(s):  
Social Welfare Function ◽  
Panel Study ◽  
Data Use ◽  
Well Being ◽  
The United States ◽  
Income Mobility ◽  
Data Sets ◽  
Consumer Expenditure ◽  
Income Dynamics ◽  
Total Consumption

Abstract This paper examines inequality and mobility using measures of income and consumption. Consumption is claimed to be a better measure of permanent income and thus well-being, but most studies of inequality and mobility using U.S. data use income.This paper uses cohort data from the Consumer Expenditure Surveys on total consumption to impute consumption in the Panel Study of Income Dynamics. Then, we use this imputed consumption and actual income from the PSID to examine changes in inequality and mobility. Similar to earlier findings, we show that there has been a large increase in income inequality but no concurrent increase in consumption inequality in the 1990s. Conversely, income mobility and consumption mobility are similar during this time period.Finally, we link the concepts of inequality and mobility using a social welfare function. The results suggest that income mobility and consumption mobility more than offset the increases in inequality.

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