Imputing household spending in the Panel Study of Income Dynamics: a comparison of approaches
AbstractOne of the drawbacks of using household surveys to investigate macroeconomic issues has been a lack of a dataset that contains both adequate household expenditure data and comprehensive household wealth and income data. This paper compares alternative methods of imputing household expenditures in the Panel Study of Income Dynamics (PSID)—that of Blundell et al. (2006) and Cooper ( 2009). It also analyzes the additional expenditure questions included in the PSID starting in 1999 and expanded in 2005. The paper finds that the Blundell et al. (2006) method works well for imputing households' nondurable expenditures between 1980 and 2007. The results further show that the imputation method in Cooper (2009) dominates that of Blundell et al. (2006) for generating data on households’ total expenditures. The decision of which imputation approach to use or whether to use the actual PSID expenditure data from 1999 to 2007 will depend on the user’s research question(s) and analysis goals.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Boston in its series Working Papers with number 10-12.
Date of creation: 2010
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-03 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:ebl:ecbull:v:3:y:2004:i:9:p:1-12 is not listed on IDEAS
- Kerwin Kofi Charles & Sheldon Danziger & Geng Li & Robert F. Schoeni, 2006. "Studying consumption with the Panel Study of Income Dynamics: comparisons with the Consumer Expenditure Survey and an application to the intergenerational transmission of well-being," Finance and Economics Discussion Series 2007-16, Board of Governors of the Federal Reserve System (U.S.).
- Richard Blundell & Luigi Pistaferri & Ian Preston, 2004. "Imputing consumption in the PSID using food demand estimates from the CEX," IFS Working Papers W04/27, Institute for Fiscal Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio).
If references are entirely missing, you can add them using this form.