A New Approach to the Measurement of Economic Behavior

University Of Southern California, Los Angeles CA

Investigators

Abstract

The PIs want to develop a new method to collect economic data on the behavior of households and individuals. They wish to gather data from people who have already agreed to participate in a new survey, the Understanding America Study (UAS). The UAS gathers data on a representative sample of US residents using internet-based methods, including measures of financial literacy, numeracy, personality time use, health, and demographics. The award funds a pilot study to expand the UAS to include data on financial transactions, balances and expenditures. The data would be gathered with the participants' consent directly from the electronic records of a financial information aggregation firm. The project will give us new information about the possible feasibility of one alternative to the survey methods that are now used to gather data about consumer expenditures. The results could lead to better data for public policy and for the business community, since the project could increase the speed, breadth, and reliability of economic data. The UAS panel is a population-representative household panel currently implemented by the University of Southern California. The project will evaluate the feasibility of collecting financial administrative data from households. Current data are generally collected via surveys, and this means that there are specific sources of measurement error that may not apply to administrative records. Electronic administrative records may allow for a reduction in respondent burden while allowing for real-time data collection. The study will allow the PIs to determine whether the administrative data are more reliable and more extensive than the existing survey measures in practice.