Is the Top Tail of the Wealth Distribution the Missing Link between the Household Finance and Consumption Survey and National Accounts?

Robin Chakraborty, Ilja Kristian Kavonius, Sébastien Pérez-Duarte, Philip Vermeulen

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

Kuvaus

The financial accounts of the household sector within the system of national accounts report the aggregate asset holdings and liabilities of all households within a country. In principle, when household wealth surveys are explicitly designed to be representative of all households, aggregating these microdata should correspond to the macro-aggregates. In practice, however, differences are large. We first discuss conceptual and generic differences between those two sources of data. Thereafter, we investigate missing top tail observation from wealth surveys as a source of discrepancy. By fitting a Pareto distribution to the upper tail, we provide an estimate of how much of the gap between the micro- and macrodata is caused by the underestimation of the top tail of the wealth distribution. Conceptual and generic differences, as well as missing top tail observations, explain part of the gap between financial accounts and survey aggregates.
Alkuperäiskielienglanti
LehtiJournal of Official Statistics
Vuosikerta35
Numero1
Sivut31-65
Sivumäärä35
ISSN0282-423X
DOI - pysyväislinkit
TilaJulkaistu - 26 maaliskuuta 2019
OKM-julkaisutyyppiA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä, vertaisarvioitu

Tieteenalat

  • 511 Kansantaloustiede
  • financial accounts
  • HFCS
  • wealth inequality
  • Pareto distribution
  • households

Lainaa tätä

Chakraborty, Robin ; Kavonius, Ilja Kristian ; Pérez-Duarte, Sébastien ; Vermeulen, Philip. / Is the Top Tail of the Wealth Distribution the Missing Link between the Household Finance and Consumption Survey and National Accounts?. Julkaisussa: Journal of Official Statistics. 2019 ; Vuosikerta 35, Nro 1. Sivut 31-65.
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abstract = "The financial accounts of the household sector within the system of national accounts report the aggregate asset holdings and liabilities of all households within a country. In principle, when household wealth surveys are explicitly designed to be representative of all households, aggregating these microdata should correspond to the macro-aggregates. In practice, however, differences are large. We first discuss conceptual and generic differences between those two sources of data. Thereafter, we investigate missing top tail observation from wealth surveys as a source of discrepancy. By fitting a Pareto distribution to the upper tail, we provide an estimate of how much of the gap between the micro- and macrodata is caused by the underestimation of the top tail of the wealth distribution. Conceptual and generic differences, as well as missing top tail observations, explain part of the gap between financial accounts and survey aggregates.",
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Is the Top Tail of the Wealth Distribution the Missing Link between the Household Finance and Consumption Survey and National Accounts? / Chakraborty, Robin; Kavonius, Ilja Kristian; Pérez-Duarte, Sébastien; Vermeulen, Philip.

julkaisussa: Journal of Official Statistics, Vuosikerta 35, Nro 1, 26.03.2019, s. 31-65.

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

TY - JOUR

T1 - Is the Top Tail of the Wealth Distribution the Missing Link between the Household Finance and Consumption Survey and National Accounts?

AU - Chakraborty, Robin

AU - Kavonius, Ilja Kristian

AU - Pérez-Duarte, Sébastien

AU - Vermeulen, Philip

PY - 2019/3/26

Y1 - 2019/3/26

N2 - The financial accounts of the household sector within the system of national accounts report the aggregate asset holdings and liabilities of all households within a country. In principle, when household wealth surveys are explicitly designed to be representative of all households, aggregating these microdata should correspond to the macro-aggregates. In practice, however, differences are large. We first discuss conceptual and generic differences between those two sources of data. Thereafter, we investigate missing top tail observation from wealth surveys as a source of discrepancy. By fitting a Pareto distribution to the upper tail, we provide an estimate of how much of the gap between the micro- and macrodata is caused by the underestimation of the top tail of the wealth distribution. Conceptual and generic differences, as well as missing top tail observations, explain part of the gap between financial accounts and survey aggregates.

AB - The financial accounts of the household sector within the system of national accounts report the aggregate asset holdings and liabilities of all households within a country. In principle, when household wealth surveys are explicitly designed to be representative of all households, aggregating these microdata should correspond to the macro-aggregates. In practice, however, differences are large. We first discuss conceptual and generic differences between those two sources of data. Thereafter, we investigate missing top tail observation from wealth surveys as a source of discrepancy. By fitting a Pareto distribution to the upper tail, we provide an estimate of how much of the gap between the micro- and macrodata is caused by the underestimation of the top tail of the wealth distribution. Conceptual and generic differences, as well as missing top tail observations, explain part of the gap between financial accounts and survey aggregates.

KW - 511 Economics

KW - financial accounts

KW - HFCS

KW - wealth inequality

KW - Pareto distribution

KW - households

U2 - 10.2478/jos-2019-0003

DO - 10.2478/jos-2019-0003

M3 - Article

VL - 35

SP - 31

EP - 65

JO - Journal of Official Statistics

JF - Journal of Official Statistics

SN - 0282-423X

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