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5 Why Redesign the CE?
Pages 68-108

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From page 68...
... The level of detail that is required in describing each purchase is daunting. In the Diary survey, respondents are asked to record the details of many small purchases in a complicated booklet.
From page 69...
... This is the biggest concern with the CE program. The Panel on Redesigning the BLS Consumer Expenditure Surveys believes that there are a number of issues with the current design and implementation of the CE, and that collectively these problems lead to the underreporting of expenditures.
From page 70...
... Employer contributions for group health insurance and workers' compensation account for over 6 percent, while life insurance and pension fund expenses and final consumption expenditures of nonprofits represent almost 4 percent. McCully (2011)
From page 71...
... 2  Comparisons of consumer expenditure survey data to national income account data go back at least to Houthakker and Taylor (1970)
From page 72...
... It is not surprising that the Interview and Diary surveys yield different estimates, given the different approaches to data collection, including a 3  In these early years, BLS published separate tables for Interview and Diary data. In recent years, tables have been published with only integrated data.
From page 73...
... in the Diary survey that was also higher than the equivalent rate calculated from the Interview survey. Reporting of rent and utilities is about 15 percentage points higher in the Interview survey than the Diary survey.
From page 74...
... The 2010 ratios for food away from home and furniture and furnishings are close to a half for both the Interview and Diary surveys. For clothing and alcohol, the Diary survey ratios are below 0.50, but the Interview survey ratios are even below those for the Diary survey.
From page 75...
... The current Interview survey estimates these larger items more closely to the PCE than does the current Diary survey. For the 36 smaller categories, neither the Interview survey nor the Diary survey consistently produces estimates that have a high ratio compared to the PCE.
From page 76...
... In principle, an attentive, motivated respondent could report a particular expenditure -- a pound of tomatoes for a certain price -- concurrently with better accuracy than in a recall survey. This potential is not evident from the estimates of aggregate spending obtained from the current designs of the CE Interview and Diary surveys.
From page 77...
... MEASUREMENT DIFFERENCES BETWEEN THE INTERVIEW AND DIARY Before examining potential sources of response errors in the Interview survey and Diary survey separately, this section considers whether these two independent surveys, as currently designed, are inherently comparable in the information that each collects. In the section above, the panel raised its concern about basic comparability of expenditure categories when comparing to the PCE.
From page 78...
... However, it is appropriate to illuminate these differences more closely. Different questions are asked in the Interview and the Diary surveys, and these different questions are also asked in different survey contexts.
From page 79...
... • Other than your regular grocery shopping already reported, have you or any members of your household purchased any food or non alcoholic beverages from places such as grocery stores, convenience stores, specialty stores, home delivery, or farmer's markets? What was your usual WEEKLY expense at these places?
From page 80...
... Error Structure It was beyond the resources of the panel to examine fully the error structure of the current Interview and Diary surveys. However, as the panel went through the process of considering design alternatives for the CE, there was considerable discussion about the error structure of the current surveys.
From page 81...
... In general, most panel members concluded that the current Diary survey had an error structure with asymmetrical properties. This led the panel to look at ways to minimize errors of omission.
From page 82...
... The interviews average 60 minutes but may be shorter or much longer. (Panel members who reported their own expenditures in mock interviews with Census field representatives described interviews that lasted significantly longer.)
From page 83...
... . Field representatives want to do their job: complete the current interview and return to repeat the process four more times.
From page 84...
... Interview Questionnaire Structure The current CE Interview questionnaire is structured around categories of expense items. The field representative asks first about a fairly broad category of items and then drills down until the question is directed toward a specific detailed item.
From page 85...
... Fifty percent of field representatives said that it happened frequently or very frequently. C  onclusion 5-4: The current structure of the Interview questionnaire cycles down through global screening questions, and asks multiple ad ditional questions when the respondent answers "yes" to a screening question.
From page 86...
... The combined effects of these increasingly varied ways of making purchases and a rigid interview questionnaire that generally flows by product groupings rather than by shopping trip or payment method make the task of recalling and reporting those expenditures more difficult. This question structure seems likely to encourage the use of "estimation" rather than the reporting of a specific recall, and ultimately may lead to less accurate reporting of particular expenditures (Beatty, 2010; Peytchev, 2010)
From page 87...
... C  onclusion 5-6: Some questions on the current CE Interview question naire are very difficult to answer accurately, even with records. Interview Survey Recall Period The CE Interview questionnaire asks respondents to recall most expenditures over the previous three months.
From page 88...
... has some advantage for estimation. Frequent expenditures may be captured well by a short reporting period, while other expenditures are less frequent and will not be reported by all households during a short recall period.
From page 89...
... Field representatives have reported that a respondent occasionally goes in search for a receipt or record, to return sometime later without it. Respondents who keep electronic records may not have them up to date in their computer when the interview is conducted and therefore cannot use them to provide accurate answers.
From page 90...
... , 45 percent of field representatives reported that respondents were much less or somewhat less likely to use records when being interviewed over the phone. Only 4 percent of field representatives reported that respondents were much more likely or somewhat more likely 7  Internal Bureau of Labor Statistics memo dated November 18, 2010.
From page 91...
... The great variety of arrangements for handling individual and joint income complicates the reporting of consumer expenditures. In addition, field representatives have reported it appears that some other household members may intentionally withhold information from the household respondent.
From page 92...
... C  onclusion 5-10: Telephone interviews appear to obtain a lower qual ity of responses than the face-to-face interviews on the CE, but a sub stantial part of the CE data is collected over the telephone. SOURCES OF RESPONSE ERROR IN THE DIARY SURVEY The Diary survey collects data on expenditures a household makes during a brief period of time (two weeks)
From page 93...
... These mitigation strategies are not uniformly implemented. There are shortcuts allowed in the fielding of the Diary survey; for example, field representatives are permitted to place both one-week diaries at the same time.
From page 94...
... The diary booklet is not organized so as to reveal a natural linear process for becoming acquainted with the recording process. The field representative must flip through the booklet to train the respondent on its use, referring to the 15 individual instructional pages (including foldout flaps)
From page 95...
... all Enter the Fast-Food Vending Total Cost that apply total cost of (see examples above Full Employer snack/other Take-out Machines with tax & tip Service or School the alcohol breakfast and on the flap) Delivery Places or Mobile Cafeteria dinner Concession lunch Vendors other wine beer 1 2 3 4 1 2 3 4 1 2 3 101 1 2 3 4 1 2 3 4 1 2 3 102 1 2 3 4 1 2 3 4 1 2 3 103 1 2 3 4 1 2 3 4 1 2 3 104 1 2 3 4 1 2 3 4 1 2 3 105 1 2 3 4 1 2 3 4 1 2 3 106 1 2 3 4 1 2 3 4 1 2 3 107 1 2 3 4 1 2 3 4 1 2 3 108 1 2 3 4 1 2 3 4 1 2 3 109 1 2 3 4 1 2 3 4 1 2 3 110 1 2 3 4 1 2 3 4 1 2 3 111 1 2 3 4 1 2 3 4 1 2 3 112 1 2 3 4 1 2 3 4 1 2 3 113 1 2 3 4 1 2 3 4 1 2 3 114 1 2 3 4 1 2 3 4 1 2 3 115 1 2 3 4 1 2 3 4 1 2 3 116 1 2 3 4 1 2 3 4 1 2 3 117 1 2 3 4 1 2 3 4 1 2 3 118 1 2 3 4 1 2 3 4 1 2 3 119 1 2 3 4 1 2 3 4 1 2 3 120 1 2 3 4 1 2 3 4 1 2 3 121 1 2 3 4 1 2 3 4 1 2 3 122 If there are not enough lines in this part, please continue recording your expenses on pages 36–37.
From page 96...
... * Please Note: If you are unsure about whether to include an item or where to record an item, write it down wherever it seems best or make a note and ask your field representative.
From page 97...
... Service or School the alcohol breakfast Delivery Places or Mobile Cafeteria with tax & tip dinner lunch Concession Vendors other wine beer 1 2 3 4 4 1 2 3 101 X bagel, juice Level of detail needed: X 2 79 1 2 3 4 briefly describe the meal.3 1 2 4 1 2 3 102 X pizza X 5 57 1 2 3 4 1 2 3 4 1 2 3 103 X coffee X 1 35 1 2 3 4 1 2 3 4 1 2 3 104 X sandwich, soda X 5 15 1 2 3 4 1 2 3 4 1 2 3 105 X chips X 70 1 2 3 4 1 2 3 4 1 2 3 106 X elem.school lunch - month X 45 00 1 2 3 4 1 2 3 4 1 2 3 107 X soda X 65 1 2 3 4 1 2 3 4 1 2 3 PLE 108 X buffet X 62 23 X 12 00 1 2 3 4 1 2 3 4 1 2 3 109 X drinks from cash bar X 15 00 X X 15 00 1 2 3 4 1 2 3 4 1 2 3 AM 110 X caterer - Family Reunion X 350 00 X X X 95 00 1 2 3 4 1 2 3 4 1 2 3 EX 111 1 2 3 4 1 2 3 4 1 2 3 112 1 2 3 4 1 2 3 4 If alcohol was included 113 in the purchase, mark 1 2 3 4 1 2 3 4 whether it was wine, beer, 114 and/or other and enter the 1 2 3 4 1 2 3 4 total cost of the alcohol. 1 2 3 115 1 2 3 4 1 2 3 4 1 2 3 116 1 2 3 4 1 2 3 4 1 2 3 117 1 2 3 4 1 2 3 4 1 2 3 118 1 2 3 4 Use the pocket on the inside of the back 1 2 3 119 1 2 3 4 cover to store your receipts until you're ready 1 2 3 120 to record your purchases.
From page 98...
... FIGURE 5-5  Diary booklet, pageFig5-5.eps 2. SOURCE: Bureau of Labor Statistics.
From page 99...
... The field representative may look at the receipts collected by the household respondent and ask other questions to find out whether all expenditures have been recorded. Realization at the initial visit that the interviewer will call mid-week and return to pick up the diary at the end of the week would seem to encourage respondents to think about their daily expenditures and be able to recall and report them at the end of the diary week contact.
From page 100...
... C  onclusion 5-13: It is likely that the current organization of recording expense items by "day of the week" makes it more difficult for some respondents to review their diary entries and assess whether an expen diture has been missed. Reporting Period for the Diary Survey The Diary survey has a one-week reporting period, followed immediately by a second wave also consisting of a one-week reporting period.
From page 101...
... For the Diary survey, BLS counts each week of the two weeks of diary reporting by a household as an independent observation. The "CE program defines the response rate as the percent of eligible households that actually are interviewed for each survey" (Johnson-Herring and Krieger, 2008, p.
From page 102...
... for Consumer Expenditure Interview and Diary surveys. Fig5-6.eps SOURCE: Bureau of Labor Statistics, data table provided to panel.
From page 103...
... , 14.1 percent were classified as attritors (completed one or more FIGURE 5-7  Response rates for consumption surveys across four western countries. SOURCE: Barrett, Levell, and Milligan (2012)
From page 104...
... This may be particularly true in households in which both diaries are placed at the same time without an intervening visit from the field representative. Without adjustment during the estimation process, it is possible that the lower reported expenditures in wave 2 will bring down the overall level of expenditures reported from the Diary survey.
From page 105...
... They concluded that: Only the very highest income households seem to be under-represented in the Consumer Expenditure Survey (CE) , and the mystery of overall under reported spending in the CE is not fully explained by that shortcoming.
From page 106...
... Income and employment information is collected for the previous 12 months, but only during the second and fifth interview. The current Diary survey collects expenditure data for two weeks, but income and employment data for the previous 12 months.
From page 107...
... The current Interview survey estimates these larger items more closely to the PCE than does the current Diary survey. For 36 smaller categories, neither the Interview survey nor the Diary survey consistently produces estimates that have a high ratio compared to the PCE.
From page 108...
... Additionally, they expressed concern about the infrequent use of records in the Interview survey that is less relevant to a concurrent mode of collection. The Interview and Diary surveys have similar response rates of 73 to 72 percent.


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