Imputing Consumption from Income Tax Registers

Abstract

In this study we investigate if it is possible to derive a measure of total expenditure from administrative income-tax-register data at the individual household level. We exploit that the households in the Danish Expenditure Survey 1995 can be linked to their administrative registers for the years around the survey year. These matched data offer a unique possibility to both construct measures of total expenditure and to check directly on the reliability of our imputations. The results are promising. It gives clear indication that administrative register data on income, tax payments, and wealth can be used to construct a measure of total expenditure at the household level.