Measuring What We Spend:

Toward a 

New Consumer Expenditure Survey

Recommendations
CHAPTER 6: PATHWAY 

(First Steps) 

The current detail and requirements imposed by the multiple and 

divergent CE data uses are difficult to satisfy efficiently within a single 

design, and the panel believes that tradeoffs must be made. Survey 

designs always involve compromise, and the current CE design tries to 

meet the data requirements of all users and then compromises by 

accepting the heavy burden and unsatisfactory data quality that 

emerges. The cognitive and motivational issues associated with the 

current Diary and Interview surveys cannot be fixed through a series of 

minor changes. 

* Determine priorities among the data requirements of the many uses of the CE 

so that tradeoffs can be made in a planned and transparent manner --- recommendation 6-1:

* Implement a major redesign of the CE based on those priorities - 

recommendation 6-2:

Committee on National Statistics
Charge to the Panel

The charge to this panel was to provide a “menu of comprehensive design 

options with the highest potential, not one specific all-or-nothing design.” 

Prior to BLS setting priorities for data collected on the CE, the panel’s most 

effective course of action is to suggest alternative design prototypes, each of 

which has a higher potential for success when enlisted to achieve a different 

prioritized set of objectives.

Three different prototype designs are proposed. 

Committee on National Statistics
 

*The panel’s proposed designs need testing. BLS should conduct major 

feasibility studies to investigate key aspects. These studies will help provide 

the empirical basis for final decision-making - recommendation 6-3:

*Pay close attention to issue of non-expenditure items synchronized with 

expenditures - recommendation 6-4:

Committee on National Statistics
The panel has great confidence that BLS, with its dedicated and 

knowledgeable staff, will be able to move forward successfully toward a new 

Consumer Expenditure Survey. We trust that this report will help in that 

process. It has been a challenging opportunity to consider these issues and 

make recommendations.

Committee on National Statistics
Panel’s Fundamentals 

The panel considered many approaches to a redesign of the CE, and sorted through 

those numerous options by focusing on the following fundamentals:

• Improve data quality,

• Be mindful that the resources (both 

out-of-pocket and staff) available to 

support this survey are constrained,

• Be mindful that the survey processes 

have to be workable across the entire 

population of U.S. households — the 

more distinct processes that need to be 

designed for different population 

groups, the more resources will be 

required,

• Keep it simple — to the extent possible,

• Provide respondents with relief from 

the current burden level of the CE,

• Provide respondents with sufficient 

motivation to participate,

• Support the use of records and receipts,

• Support the current uses of the CE to the 

extent possible, and provide options in 

support of the prioritization of those uses 

in the future,

• Utilize newer data collection methodology 

and external data sources when 

supportive of the above fundamentals.

Committee on National Statistics
Commonalities in three designs

• Integrate Design

• Reduce Burden

• Use Incentives to Increase and Focus Motivation

• Support Accurate Use of Records

• Redesign Survey Instruments

• Increase Use of Self-Administration

• Reduce Proxy Reporting

• Utilize Newer Data Collection Technology

• Use Administrative Data Appropriately but with Caution

• Create a Panel Component and Measure Life Event Changes

Committee on National Statistics
Design A

Detailed Expenditures through Self Administration

Design A focuses on obtaining expenditure data at a detailed level through a 

“supported journal,” a diary-type self-administered data collection with tools 

that reduce record-keeping while encouraging the entry of expenditures 

when memory is fresh and receipts available. 

Design A also has a self-administered recall survey to collect larger and 

recurring expenses. 

It collects a picture of household expenses over six months. 

Reporting periods vary by expense group.

 

Committee on National Statistics
Design A - Objectives

• Promote accurate reporting of detailed expenditure data by 

allowing sufficient time and space for careful enumeration 

while using records and receipts

• Reduce the effort it takes to report those expenditures by 

providing support and technology tools

• Reduce respondent’s tendency to estimate, guess, satisfice or 

underreport. 

Committee on National Statistics
Committee on National Statistics
 

Design A

Research Topics for Specific Designs

Develop models that would estimate quarterly and annual expenditures and 

income at the household level from the four weeks of reported detailed data 

plus the data reported on larger and routine expenditures.

Committee on National Statistics
Design B

A Comprehensive Picture of Expenditures and Income

 

Design B uses a recall interview coupled with a short supported journal. 

It provides data for 96 expenditure categories (rather than the more detailed 

expenses provided by Design A) and collects complete expenditures over an 

18-month period in three waves. 

It builds a dataset particularly useful for economic and policy analysis. 

This design also involves a small follow-on survey used to help understand 

measurement errors in the main survey.

 

Committee on National Statistics
Design B - Objectives

• Use basic recall mode of reporting - which has provided 

aggregate expenditures closer to the PCE

• Use a broader level of aggregation than currently used in the 

CE interview

• Facilitate the respondent to “estimate” expenditures that can 

not be recalled

• Use self-administered process in waves 2 and 3

• Provide a comprehensive picture of expenditure, income and 

assets for 18 months

• Use subsample to explore accuracy of collected data

Committee on National Statistics
Committee on National Statistics
Design B

Research Topics for Specific Designs

• Investigate the assumption that a “bounding” interview is unnecessary to 

avoid telescoping and other issues.

• Investigate the accuracy and completeness of aggregated expenditures for 

periods up to six months and for estimates of averages (i.e., average 

monthly spending gasoline) used in this prototype to construct a full set of 

microdata for the entire six-month period. 

• Develop appropriate models to “disaggregate” aggregated expenses using 

data from the one-week supported journal.

• Develop methodology for a successful component that will use an 

intensive interview and process based on prior collation of records and 

financial software to achieve a budget balance for the year at the 

household level as described below. Extend existing research done by 

Fricker, Kopp, and To (2011) to fully evaluate its potential and limitations.

Committee on National Statistics
Design C

Dividing Tasks among Multiple Integrated Samples

Design C incorporates elements of both Designs A and B. It collects the detail 

of expense items as in Design A while providing a household profile for six 

months. 

To do both, it uses a more complex sample design and employs modeling, 

collecting different information from different households.

Committee on National Statistics
Design C - Objectives

• Avoid asking every household to perform exactly the same 

tasks

• Provide estimates of detailed expenditures as in Design A, 

relying on correlations between three components to increase 

precision of these estimates

• Minimize need for recall data, using pro-active self 

administered data collection

• Provide panel data with a complete picture of a household on 

a subset of the overall sample

Committee on National Statistics
Committee on National Statistics
Design C

Research Topics for Specific Designs

 

• Research and develop models for estimation using the base survey and 

two components of data collection. 

• Research and develop models for imputing at the household level “smaller 

expense items” collected on the Detailed Expenditure Component and not 

on the Household Profile Component into the household-level dataset to 

complete the overall household expense profile.

Committee on National Statistics