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The Measurement and Structure of Household Wealth

Author

Listed:
  • F. Thomas Juster

    (University of Michigan)

  • James P. Smith

    (RAND)

  • Frank Stafford

    (University of Michigan)

Abstract

This paper deals with methodological issues that arise in measuring household wealth. Two prominent American household surveys--the PSID and SCF--rely on different methodological approaches to the measurement of household wealth. In particular, SCF oversamples high-income households and has a far more extensive set of questions. In the top one percent of the wealth distribution, better measures of wealth are related to over- sampling of very wealthy households and the number of questions that are asked. However, one can characterize total household wealth holdings for the overwhelming majority of households with a relatively moderate number of questions. When successive waves of wealth modules are used to compute savings, the verdict on quality is more cautious, in part due to the inherently lartger role measurement error plays in any first difference formulation.

Suggested Citation

  • F. Thomas Juster & James P. Smith & Frank Stafford, 2004. "The Measurement and Structure of Household Wealth," Labor and Demography 0402009, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0402009
    Note: Type of Document - pdf; pages: 23. Labour Economics, Vol. 6, No. 2, 1999, pp. 253-275.
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    References listed on IDEAS

    as
    1. Wolff, Edward N., 1994. "Trends in Household Wealth in the United States: 1962-1983 and 1983-1989," Working Papers 94-03, C.V. Starr Center for Applied Economics, New York University.
    2. Richard T. Curtin & Thomas Juster & James N. Morgan, 1989. "Survey Estimates of Wealth: An Assessment of Quality," NBER Chapters, in: The Measurement of Saving, Investment, and Wealth, pages 473-552, National Bureau of Economic Research, Inc.
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    4. Arthur B. Kennickell & Martha Starr-McCluer & Annika E. Sunden, 1997. "Family Finance in the U.S.: Recent Evidence from the Survey of Consumer Finances," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 83(1), pages .1-24, January.
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    6. Smith, J-P, 1997. "Inheritances and Bequests," Papers 97-04, RAND - Labor and Population Program.
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    8. F. Thomas Juster & James P. Smith, 2004. "Improving the Quality of Economic Data: Lessons from the HRS and AHEAD," Labor and Demography 0402010, University Library of Munich, Germany.
    9. Deaton, Angus, 1992. "Understanding Consumption," OUP Catalogue, Oxford University Press, number 9780198288244.
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