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Building a Consumption Poverty Measure: Initial Results Following Recommendations of a Federal Interagency Working Group

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  • Grayson Armstrong
  • Caleb Cho
  • Thesia I. Garner
  • Brett Matsumoto
  • Juan Munoz
  • Jake Schild

Abstract

Consumption is a well-being measure that is determined by a combination of resources (e.g., income, in-kind benefits, assets, debt, time) available to households, their circumstances, and their preferences. In this study, we derive consumption poverty statistics using a consumption measure that includes the flow of services from owner-occupied housing and vehicles and in-kind transfers. The base data are from the US Consumer Expenditure Survey Interview from 2015 through 2020. The consumption poverty rate (using an absolute threshold anchored to the 2015 relative consumption poverty rate) declines from 16.8 percent in 2015 to 11.5 percent in 2020.

Suggested Citation

  • Grayson Armstrong & Caleb Cho & Thesia I. Garner & Brett Matsumoto & Juan Munoz & Jake Schild, 2022. "Building a Consumption Poverty Measure: Initial Results Following Recommendations of a Federal Interagency Working Group," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 335-339, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:335-39
    DOI: 10.1257/pandp.20221041
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    References listed on IDEAS

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    1. Bruce D. Meyer & James X. Sullivan, 2012. "Winning the War: Poverty from the Great Society to the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(2 (Fall)), pages 133-200.
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    Cited by:

    1. Hembre, Erik & Collins, J. Michael & Wylde, Samuel, 2024. "A rising tide lifts all homes? Housing consumption trends for low-income households since the 1980s," Journal of Public Economics, Elsevier, vol. 233(C).

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    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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