Household Consumer Expenditure Survey

Household Consumer Expenditure Survey
Name	Household Consumer Expenditure Survey
Country	United States
Administered by	United States Census Bureau / Bureau of Labor Statistics
Established	1888 (origins)
Frequency	Annual / Continuous
Sample size	variable

Household Consumer Expenditure Survey The Household Consumer Expenditure Survey is a continuous microdata program that measures spending patterns of American households. It supports policy analysis by institutions such as the Congressional Budget Office, Federal Reserve Board, Internal Revenue Service, Department of Labor (United States), and Social Security Administration. Researchers from universities like Harvard University, Stanford University, Massachusetts Institute of Technology, and University of California, Berkeley use the data alongside international sources such as the Organisation for Economic Co-operation and Development and the International Labour Organization.

Overview

The survey collects detailed expenditure, income, and demographic information from a representative sample of households across the United States of America. Data are used by agencies including the Bureau of Economic Analysis, Office of Management and Budget, United Nations, and academic centers like the National Bureau of Economic Research and the Brookings Institution. Outputs inform measures such as the Consumer Price Index, studies by the Economic Research Service of the United States Department of Agriculture, and analyses by think tanks including the Urban Institute and the American Enterprise Institute.

History and Development

Origins trace to 19th-century inquiries such as work by the United States Department of Labor and early statistical efforts tied to the Interstate Commerce Commission era. The program evolved through milestones involving the Works Progress Administration and postwar reforms influenced by reports from the Commission on Money and Credit and panels convened by the National Academy of Sciences. Major redesigns occurred during administrations of presidents like Franklin D. Roosevelt, Harry S. Truman, Dwight D. Eisenhower, and later under Lyndon B. Johnson civil reports, with methodological overhauls responding to reviews by bodies including the General Accounting Office and the National Research Council.

Methodology

The survey employs a rotating panel and diary components, combining interview and diary instruments similar to methods debated in conferences by the American Statistical Association and reviewed in journals such as the Journal of Political Economy and The Review of Economics and Statistics. Sampling frames have been constructed using Decennial Census data and administrative lists like those maintained by the United States Postal Service. Quality control and imputation methods follow standards promulgated by the International Monetary Fund and the World Bank statistical manuals, while disclosure avoidance aligns with guidelines from the Privacy Act of 1974 and oversight by the Office of Personnel Management.

Data Coverage and Variables

Key variables include household expenditures on categories aligned with classifications used by the Consumer Price Index and National Income and Product Accounts: housing, transportation, food, healthcare, education, recreation, and apparel. Demographic variables capture age and relationship matrices reflected in Census Bureau definitions, employment variables crosswalked with the Current Population Survey and occupational codes from the Bureau of Labor Statistics. Income measures are comparable to constructs used by the Internal Revenue Service and Social Security Administration, and asset measures mirror reporting standards from the Federal Reserve Board's Survey of Consumer Finances.

Uses and Applications

Policymakers at the Treasury Department and analysts at the Congressional Budget Office use the data for tax incidence and transfer program simulations. Labor economists at institutions like Princeton University and Yale University employ it for consumption smoothing and labor supply research; public health researchers at Johns Hopkins University and Centers for Disease Control and Prevention analyze healthcare spending patterns. Private sector users include consultancies such as McKinsey & Company and financial firms affiliated with New York Stock Exchange reporting, while international organizations like the World Health Organization and United Nations Educational, Scientific and Cultural Organization use comparable series in cross-country studies.

Limitations and Criticisms

Critiques have been raised in fora including hearings before the United States Congress and reviews by the Government Accountability Office concerning underreporting of expenditure categories noted in literature from Columbia University and University of Chicago researchers. Coverage gaps compared to administrative tax data from the Internal Revenue Service and wealth measures from the Federal Reserve’s Survey of Consumer Finances have prompted methodological debates at meetings of the American Economic Association and policy panels convened by the Khan Academy-related academic outreach. Survey nonresponse, recall bias, and diary burden mirror problems discussed in reports by the RAND Corporation and critiques in the Brookings Institution.

National and International Comparisons

Comparisons use harmonization work by the Organisation for Economic Co-operation and Development, the International Labour Organization, and the United Nations Statistical Commission to align categories with surveys like the United Kingdom Household Longitudinal Study, German Socio-Economic Panel, Canadian Survey of Household Spending, Australian Bureau of Statistics household surveys, and the Eurostat Household Budget Surveys. Crosswalks enable researchers at institutions like the London School of Economics and University of Toronto to conduct consumption inequality and poverty analyses comparable to studies published in outlets tied to the European Central Bank and Bank for International Settlements.

Category:Surveys