A Comparison of Micro and Macro Expenditure Measures Across Countries Using Differing Survey Methods

40 Pages Posted: 19 Oct 2013 Last revised: 28 May 2021

See all articles by Garry F. Barrett

Garry F. Barrett

University of Sydney

Peter Levell

Institute for Fiscal Studies (IFS)

Kevin S. Milligan

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 2013

Abstract

This paper presents a comparative assessment of the performance of the household expenditure survey programs in Australia, Canada, the UK and US. Cross-country and time series variation in survey methodology and experience is used to assess the role of factors influencing the performance of the household surveys. First, coverage of aggregate expenditure relative to national account is examined. Coverage rates are highest in Canada and the UK. Over the past three decades coverage remained fairly stable in Canada and Australia; in the UK and US coverage rates declined sharply. Survey response rates and top income shares are then considered in tandem with coverage rates. Falls in response rates are found to be predictive of changes in coverage rates. Further, the change in coverage rates over time coincided with the growing concentration of income, indicating that growing inequality contributed to declining coverage rates. Specific expenditure components were then examined. There was no clear pattern by collection method. Most evident is the high and stable coverage of regularly purchased items (e.g. food), along with the more volatile coverage of irregular and larger expenditure items (e.g. vehicles, furniture and household equipment). The aggregate patterns in coverage cannot be attributed to specific expenditure components or collection methods.

Suggested Citation

Barrett, Garry F. and Levell, Peter and Milligan, Kevin S., A Comparison of Micro and Macro Expenditure Measures Across Countries Using Differing Survey Methods (October 2013). NBER Working Paper No. w19544, Available at SSRN: https://ssrn.com/abstract=2342446

Garry F. Barrett (Contact Author)

University of Sydney ( email )

Rm 370 Merewether (H04)
The University of Sydney
Sydney, NSW 2006 2008
Australia

Peter Levell

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Kevin S. Milligan

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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