Grossing up of Dissaggregate Household Data from the BHPS: How does this Match with Aggregate Data? ∗

Abstract

(Preliminary and Incomplete. Please do not quote without permission) In this paper we evaluate the reliability of specific variables in the British Household Panel Survey (BHPS). Using BHPS cross-sectional individual and household weights and estimates of the household population and number of households in the UK, we gross up certain variables from the BHPS and compare these numbers with national aggregates. We are interested in the percentage that the BHPS data represents of the national aggregates, and if those percentages have remained broadly constant over the years covered by the BHPS. We focus on those variables that provide the most information on risks to financial stability stemming from households and, therefore, focus on household balance sheet variables relating to debt, assets and income. Our results indicate that housing wealth is systematically over-recorded (with a BHPS/national aggregate ratio of around 120%). Income and consumption represent around 80–85 % of the aggregate. Unsecured debt is under-recorded with a ratio of 48 % whereas the ratio for the secured debt variable is 90%. Financial assets represent only 32 % of the aggregate (the aggregate being not entirely comparable with the BHPS measure since it includes data attributable to non-profit institutions)