Modelling Regional Changes in US Household Income and Wealth: A Research Agenda

Abstract

The aim of this paper is to outline a research agenda for the estimation of household wealth in the USA. The authors argue that, although much progress has been made with the estimation of household income, such research has concentrated on wage and benefit income. A dynamic microsimulation model called CORSIM is used to estimate new indicators of wealth. These include household income derived from stocks and shares, retirement accounts, and financial gains made from house sales and inheritances. New indicators of debts include all household debts, especially mortgage debts. Although these indicators have been calculated at national levels in the past, it is argued that considerable benefits will accrue to our understanding of social problems and changing consumer lifestyles if these indicators can be estimated at regional and subregional levels of resolution.