www.bls.gov

Consumer Expenditure Survey Data 

Comparisons

(Measurement Error Continued) 

Thesia I. Garner (speaker)

Division of Price and Index Number Research

William Passero

Division of Consumer Expenditures

Panel on Reviewing Redesign Options for the Consumer 

Expenditure Surveys

CNSTAT

February 8, 2011 (edited 2-18-11)

www.bls.gov
Outline for Data Comparisons

 Why these are needed

 Comparison issues

 Comparisons to other data

2
Why Data Comparisons Are 

Needed

 Such comparisons provide:

A sense of degree and direction of possible survey 

errors, rather than an exact measure of bias

Specific estimates from other sources are not 

necessarily the “truth” 

 Data comparisons are employed to:

Assess the cumulative effects of non-sampling 

errors on quality of CE data

Develop methodological studies to improve quality

3
Comparisons: Issues

 Account for differences in content or concept 

Can be reconciled

Cannot be reconciled

 Source of data

Household survey

Census

Administrative

Trade association publications 

4
Comparisons: Other Data Sources

 Panel Study of Income Dynamics (PSID)

 Health and Retirement Survey Consumption and Activities Mail 

Survey (HRS-CAMS)

 American Life Panel (ALP)

 Medical Expenditure Panel Survey (MEPS)

 National Health Expenditure Accounts (NHEA)

 Residential Energy Consumption Survey (RECS)

 Survey of Consumer Finances (SCF)

 Current Population Survey (CPS)

 ACNielsen Homescan Survey

 Personal Consumption Expenditures (PCE)

5
Survey Covering All Expenditure 

Categories: PSID

 Panel Study of Income Dynamics (PSID)

1999, 2001, 2003

Sample: all households and their members in 

panel

Collection of data by phone

Recent study: Li et al. (2010)

– For comparable categories in 2003, PSID total 

spending 1% higher than CE total spending

– CE spending higher than PSID

• Housing (3%), Transportation (6%)

– PSID spending higher than CE

• Education (13%), Child care (26%), Health care (14%), 

Food (10%)

6
Comparable Expenditures: 

HRS-CAMS

 Health and Retirement Survey Consumption and 

Activities Mail Survey (HRS-CAMS)

 Waves: 2001, 2003, 2005, 2007 

 Sample: respondents aged 51 and older and members of 

their household

 Collection of data by mail

 Comparable by subtracting CE personal insurance and 

pensions

 Hurd and Rohwedder (2011) comparables

CE/CAMS (ages 55+)

2001 0.867

2003 0.866

2005 0.960

2007 0.997

Authors note that earlier CAMS results likely to be too high. See Hurd and Rohwedder 2009 7
Comparable Expenditures: 

American Life Panel

 ALP financial crisis surveys

 May 2009 

 Sample: all U.S. households

 Global expenditures and balance edits

 Comparable by subtracting CE personal insurance and 

pensions

 Hurd and Rohwedder (2011)

 ALP Spending totals (April 2009-March 2010) to those 

from CE (2009)

 CE aggregate total expenditures 4.5 percentage points 

higher than ALP

8
Comparisons: Health Care

 Medical Expenditure Panel Survey (MEPS)

 1996-2006

 Sample: same as CE

 Results

– Ratio of CE to MEPS total health care spending ranges from 0.68 

(2003) to 0.93 (1996) with most recent 0.71 (2006)

 National Health Expenditure Accounts (NHEA)

 1996-2006

 Sample: all persons who are residents in U.S. including military

 Results

– Ratios of CE to NHEA total health care spending range from 0.72 

(2003) to 0.86 (1996) with more recent 0.74 (2006)

 Foster, MLR 2010

9
Comparison: Energy

 Residential Energy Consumption Survey (RECS)

 2001 and 2005

 Sample: similar population to that for the CE but RECS in 

addition samples households on military bases but not 

barracks

 Household energy spending (Crain 2010)

 Results

CE/RECS 2001 2005

Total 1.09 1.07

Electricity 1.14 1.11

Natural gas 1.01 1.12

Fuel oil and LPG 0.99 0.71

10
Comparison: Income

 Current Population Survey

 2002 through 2009

 Sample: similar to CE 

 Passero (2011)

 CPS defined before-tax money income

 CE: income mapped to 2009 (as for publication)

 Results

CE/CPS 2003 (preimputation)

2004 (first 

year 

imputation

2009

Wages and 

salaries 0.78 0.94 0.99

Social Security 0.79 0.93 0.90

Pensions and 

annuities 0.82 0.96 0.86

Non-farm 0.59 1.05 0.89

Total 0.75 0.91 0.94 11
Comparison: Liabilities

 Survey of Consumer Finances

1992, 1995, 1998, 2002, 2004, 2007

Sample: same as CE but with oversampling of 

high income households

Johnson and Li (2009)

 Results for selected liabilities for year 2007

CE/SCF Debt Payment Debt Balance

Primary mortgage 0.87 0.78

Other mortgage 0.77 1.14

Vehicle 1.00 0.86

Credit card 0.72 0.73

Total 0.86 0.80 12
CE and PCE Comparisons

 Definitions of populations and expenditures

 Data sources and periodicity

 Trends over time in levels and ratios 

 Example for total expenditures with 

adjustments for select differences

 Garner, Janini, Passero, Paszkiewicz, and Vendemia, Monthly 

Labor Review, September 2006

 Garner, Passero, and McClelland, NBER Summer Workshop, 

July 2009

13
Examples of Other CE to PCE 

Comparison

 Houthakker and Taylor (1970)

 Slesnick (1992, 1998)

 Studies conducted by researchers at BEA (2003)

 Attanasio, Battistin, and Leicester (2006)

 Meyer and Sullivan (2009)

14
BLS CE to PCE Comparisons

 First conducted in 1987 by Gieseman

 Use of internal data

 Use integrated CE data as neither Diary nor 

Interview reflects the entire universe of 

expenditures 

 Some data are only collected in one instrument

 Some data are collected in both; determine best 

source for use in publications

 Aggregate expenditures

 Estimates use CU population weights

15
Source of Data: 

Apparel and Services

 CE Diary and Interview

2009

All UCCs for Apparel and Services (not publication 

selection)

– Diary

– Interview

 Internal CE Division 

 Results

Interview/Diary 2009

Apparel and 

Services

0.67

16
CE to PCE Basics

 CE

 Household Surveys

 Periodicity 

– Annual

– Quarterly

– Monthly

– Weekly

 Expenditures

– Value of goods and 

services purchased by 

consumers

– Social Security 

contributions 

 PCE

 Establishment Census or 

Surveys

 Periodicity

– Benchmark (detailed)

– Annual

– Quarterly

– Monthly

 Expenditures

– Value of goods and services 

purchased by the personal 

sector (excludes intra-sector 

transactions)

17
In PCE Out of Scope for CE

 Population 

 Employees of U.S. businesses working abroad and U.S. 

government and military personnel stationed abroad

 Military living on-base in the U.S.

 All persons in institutions and the homeless for whom 

expenditures are made

 Non-profit institutions serving households (can be identified 

with 2009 PCE new classification system)

 Expenditures 

 Value of home production for own consumption on farms 

 Standard clothing issued to military

 Services furnished without payment by financial intermediaries 

except life insurance carriers

18
 Intra-sector household transactions, such as for 

used cars or used clothing are in scope for CE and 

out of scope for PCE

 PCE items partly out of scope for CE

Health Care Expenditures

Religious and Welfare

 Defined differently 

Education expenditures

Life insurance and pension plans

Owner-occupied housing expenditures (publication) 

Further Differences

19
Comparison Process

 Request PCE Bridge Table from Input-Output Group

 Provides PCE components as published in greater detail than 

shown in published BEA tables

 Represents what of total national output is apportioned to 

PCE (see example)

 Use highly detailed PCE data to inform decisions of 

assigning CE UCC categories to line-item published 

PCE categories 

 Define comparables

 In many instances, there is no perfect match between the 

CE and PCE items assigned to an aggregate category

 In some cases, adjustments are made to published CE 

categories for greater comparability (e.g., imputed owner 

rent) 20
21

Amount of value added to total 

recreation estimate by factor, 1997 PCE

Factor

Value added

(millions of dollars)

Total $215,067

Basic value

Wholesale margin

Transportation cost

Wholesale taxes

Retail margin

Retail taxes

$208,064

30

76

6,153

677

68
22

Aggregation and allocation of receipts

for recreation, 1997 I/O Accounts 

(millions of dollars)

Allocation of Production

Basic 

value

Whole.

margin

Trans. 

cost

Comm & 

whole. taxes

Retail 

margin

Retail 

taxes

Purchasers’ 

value

Exports of goods

Intermediate production

Travel & conference services

Real estate services

Legal, accounting, & insurance services

Communication & utility services

Rental & leasing of equipment

Repairs & maintenance costs

Government purchases & sales –

Federal, state, local, foreign

Net purchases & sales of foreigners

Change in inventories

Unspecified costs

Unallocated output

1,400

19,186

7,124

6,505

5

4,054

11,748

9,870

-1,828

2,099

44

41,497

5,783

30

46

0

0

0

0

0

0

0

0

1

5

0

78

119

0

0

0

0

0

0

0

0

1

13

0

0

74

9

38

0

59

261

53

-284

0

0

565

259

6 0

1,508

19,431

7,133

6,544

6

4,113

12,009

9,924

-2,112

2,099

45

42,080

6,042
23

Aggregation and allocation of receipts 

for recreation, 1997 I/O Accounts – cont. 

(millions of dollars)

Allocation of Production

Basic 

value

Whole.

margin

Trans. 

cost

Comm & 

whole. taxes

Retail 

margin

Retail 

taxes

Purchasers’ 

value

PCE Sporting Equipment

PCE Sports Supplies, Incl. Ammo

PCE Fish & Seafood

PCE Food in Purchased Meals

PCE Alcohol in Purchased Meals

PCE Other Meats

PCE Toys, Dolls, & Games

PCE Electrical Repair

PCE Laundry & Garment Repair

PCE Beauty Shops & Health Clubs

PCE Commercial & Vocational Schools

PCE Elementary & Secondary Schools

PCE Miscellaneous Personal Services

PCE Bus

PCE Mass Transit Systems

602

48

78

452

98

129

16

1,708

230

6,557

1,742

832

15

663

7,686

0

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

3

5

0

0

0

0

0

0

0

0

0

0

0

0

5

0

0

33

0

0

0

22

12

169

1

0

0

0

0

0

41

28

0

0

0

0

0

0

0

0

0

0

0

0

0

4

2

0

0

0

0

0

0

0

0

0

0

0

0

607

97

113

486

98

129

16

1,730

242

6,726

1,743

832

15

663

7,686
24

Aggregation and allocation of receipts 

for recreation, 1997 I/O Accounts – cont. 

(millions of dollars)

Allocation of Production

Basic 

value

Whole.

margin

Trans. 

cost

Comm & 

whole. taxes

Retail 

margin

Retail 

taxes

Purchasers’ 

value

PCE Other Purchased Intercity 

Transportation

PCE Other Motor Vehicle Services

PCE Hotels & Motels

PCE Postage

PCE Household Operations Services, 

Not Elsewhere Classified (NEC)

PCE Professional Association Expenses

PCE Social Welfare

PCE Recreation

6,242

98

418

16

4,105

4,417

2,980

208,064

0

0

0

0

0

0

0

30

0

0

0

0

0

0

0

76

37

2

15

0

74

0

8

6,153

0

0

0

0

0

0

0

677

0

0

0

0

0

0

0

68

6,278

100

433

16

4,179

4,417

2,988

215,067

354, 685 112 294 7,565 752 74 363,482
Reclassification of PCE Categories in 

2002 Benchmark Releases

1 Personal consumption expenditures

2 Food and tobacco

3 Clothing, accessories, and jewelry

4 Personal care

5 Housing

6 Household operation

7 Medical care

8 Personal business

9 Transportation

10 Recreation

11 Education and research

12 Religious and welfare activities

13 Foreign travel and other, net

1 Personal consumption expenditures

2 Household consumption expenditures

3

Food and beverages purchased for offpremise consumption

4 Clothing and footwear

5 Housing and utilities

6

Furnishings, household equipment and 

routine household maintenance

7 Health

8 Transportation

9 Communication

10 Recreation

11 Education

12 Food services and accommodations

13 Financial services and insurance

14 Other goods and services

15

Net foreign travel and expenditures 

abroad by U.S. residents 

16 Final consumption expenditures of NPISH

Pre20092009 on

25
Reclassification of PCE categories in 

2002 benchmark releases – cont.

1 Durable goods

2 Motor vehicles and parts

3 Furniture and household equipment

4 Other

5 Nondurable goods

6 Food

7 Clothing and shoes

8 Gasoline, fuel oil, and other energy goods

9 Other

10 Services

11 Housing

12 Household operation

13 Transportation

14 Medical care

15 Recreation

16 Other

1 Goods

2 Durable goods

3 Motor vehicles and parts

4

Furnishings and durable household 

equipment

5 Recreational goods and vehicles

6 Other durable goods

7 Nondurable goods

8

Food and beverages purchased for offpremise consumption

9 Clothing and footwear

10 Gasoline and other energy goods

11 Other non-durable goods

12 Services

13 Household consumption expenditures 

14 Housing and utilities

15 Health care

16 Transportation services

17 Recreational services

18 Food services and accommodations

19 Financial services and insurance

20 Other services

21

Final consumption expenditures of nonprofit 

institutions serving households 

Pre2009

2009 on

26
$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2002 2003 2004 2005 2006 2007 2008 2009

CE Aggregates

Total Durables Nondurables Services

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2002 2003 2004 2005 2006 2007 2008 2009

PCE Aggregates

Total Durables Nondurables Services

Aggregate expenditures for all item 

categories, PCE and CE, 2002-2009

27
$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2002 2003 2004 2005 2006 2007 2008 2009

CE "Comparable" Aggregates

Total Durables Nondurables Services

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2002 2003 2004 2005 2006 2007 2008 2009

PCE "Comparable" Aggregates

Total Durables Nondurables Services

Aggregate expenditures for all 

“comparable” item categories, 

PCE and CE, 2002-2009

28
CE/PCE Ratios

29

0.00

0.20

0.40

0.60

0.80

1.00

2002 2003 2004 2005 2006 2007 2008 2009

Total

0.00

0.20

0.40

0.60

0.80

1.00

2002 2003 2004 2005 2006 2007 2008 2009

Durables

0.00

0.20

0.40

0.60

0.80

1.00

2002 2003 2004 2005 2006 2007 2008 2009

CE/PCE All CE/PCE Comparable

Non-durables

0.00

0.20

0.40

0.60

0.80

1.00

2002 2003 2004 2005 2006 2007 2008 2009

CE/PCE All CE/PCE Comparable

Services
Current Research

 With other data sources

 Focus on CE/PCE

Further research into construction of CE 

categories comparable to detailed PCE 

table categories

Incorporation of new UCC items into CEPCE concordance

2007 benchmark PCE data not likely before 

2012

 Joint BLS-BEA project: CE-CPI-PCE

30
Contact Information

www.bls.gov

Thesia I. Garner

Senior Research Economist

Division of Price and Index Number Research

Bureau of Labor Statistics

202-691-6576

garner.thesia@bls.gov