A PROTOTYPE MICRO‐MACRO LINK FOR THE CANADIAN HOUSEHOLD SECTOR

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Abstract
This paper seeks to forge a link between Canadian macro and micro data relating to the household sector. The analysis is in three parts. The first part begins with National Accounts data on the personal sector. These data are adjusted to remove transactions relating to non‐biological persons, so that the result is income and expenditure for the household sub‐sector. The second part starts with the annual household survey used to collect income distribution data. These survey data are augmented in various ways to account for under‐reporting and to add information from other micro data sets particularly the periodic survey of household expenditure patterns and a sample of individual income tax returns. The result is a comprehensive, albeit partially synthetic, household micro data set. In the final part of the paper these two largely independent data sets are compared, and the general quality of the results is discussed.

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