EconPapers    
Economics at your fingertips  
 

Wealth Survey Calibration Using Income Tax Data

Daniel Kolar ()

No 659, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: Wealth surveys tend to underestimate wealth concentration at the top due to the missing rich problem. I propose a new way of improving the credibility of wealth surveys by making them consistent with tabulated income tax data. This is possible with the harmonized triannual Household Finance and Consumption Survey (HFCS), which collects data on both income and wealth. I achieve consis- tency by calibrating survey weights using the income part of HFCS. I apply the calibration method of Blanchet, Flores, and Morgan (J Econ Inequal 20(1):119- 150, 2022) in a new context and propose a new, intuitive way to determine the merging point where the calibration starts. I then use the calibrated weights with HFCS wealth values. Tested on Austria, calibration aligns the survey totals closer to the National Accounts, with wealth inequality increasing in the second and third survey waves. I also find a strong downward bias in the Austrian HFCS income distribution. Following the calibration, I test other top tail adjustments: replacing the survey top tail with a Pareto distribution and combining the data with a magazine rich list.

Keywords: inequality; wealth surveys; calibration; Household Finance and Consumption Survey (search for similar items in EconPapers)
JEL-codes: C83 D31 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2023-11
New Economics Papers: this item is included in nep-pub
References: View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.ecineq.org/milano/WP/ECINEQ2023-659.pdf First version, 2023 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2023-659

Access Statistics for this paper

More papers in Working Papers from ECINEQ, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Maria Ana Lugo ().

 
Page updated 2024-02-26
Handle: RePEc:inq:inqwps:ecineq2023-659