Distributions of Household Economic Accounts for Income, Consumption and Saving (DHEA - ICS)

Distributions of Household Economic Accounts for Income, Consumption and Saving (DHEA - ICS)
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Detailed information for the fourth quarter 2023

Status:

Active

Frequency:

Quarterly

Record number:

5370

The Distributions of Household Economic Accounts (DHEA) for income, consumption and saving provide information on the economic well-being and financial stability of households in Canada. The DHEA help address questions such as vulnerabilities and inequality across different groups of households and are an important complement to standard quarterly and annual indicators related to the economy.

Data release - April 17, 2024

Description

The Distributions of Household Economic Accounts (DHEA) for income, consumption and saving provide information on the economic well-being and financial stability of households in Canada. These data help address questions such as vulnerabilities and inequality across different groups of households.

Subjects

  • Economic accounts
  • Health
  • Income and expenditure accounts
  • Income, pensions, spending and wealth
  • Low income and inequality
  • Mental health and well-being

Data sources and methodology

Target population

The Distributions of Household Economic Accounts (DHEA) are compiled according to the production and asset boundary defined by the 2008 System of National Accounts. The DHEA includes the economic activities of the household sector residents within the economic territory of Canada. It also includes all interactions (e.g. pensions paid by foreign governments and from non-resident households for purposes such as providing financial assistance).

Instrument design

This methodology type does not apply to this statistical program.

Sampling

This methodology does not apply.

Data sources

Data are extracted from administrative files and derived from other Statistics Canada surveys and/or other sources.

Various personal and household tax data.

Combining data from various surveys, administrative sources and derived micro simulation models, macroeconomic indicators. Record linkage is done when available. Analysts evaluate each data source to resolve differences in concepts and measurement to derive the best indicator for this program.

Error detection

Micro and macro edits and imputation are conducted. Data confrontation is used to derive the most appropriate indicator.

Imputation

For each distribution category within the Distributions of Household Economic Accounts (DHEA), the values of each income, consumption and saving subcategory are estimated directly from the Social Policy Simulation Database and Model (SPSD/M) and Survey of Household Spending (SHS), either using variables that correspond directly with the associated Macro-Economic Accounts (MEA) concept, or indirectly using proxy variables derived from another SPSD/M or SHS variable. The resulting SPSD/M or SHS distributions by category are then benchmarked to MEA and Income and Expenditure Accounts (IEA) totals.

As part of the DHEA data quality assessment process, a number of adjustments are applied to the SPSD/M and SHS distributions by income, consumption and saving category at the micro and/or macro levels to minimize discrepancies with economic and demographic trends observed from other data sources, such as from surveys and government administrative data.

Estimation

To produce distributional information aligned with the System of Macroeconomic Accounts (MEA) concepts, Statistics Canada follows the basic steps recommended by the Organization for Economic Cooperation and Development (OECD) Expert Group on Disparities within the National Accounts. These steps include lining up the relevant components from the micro data sources to the income and consumption variables from national accounts, and scaling the micro data totals for various income and consumption items to the national accounts totals. Through this process, various distributors can be identified to allocate national accounts totals using information available from the micro-data sources by household demographic and socio-economic characteristic, such as by province, age group of the major income earner for the household, and household disposable income quintile.

Since the household disposable income concept is not measured directly within micro-data used to develop the Distributions of Household Economic Accounts (DHEA), estimates must be developed for each household. The MEA household disposable income aggregate is broken down into components (for example compensation of employees, transfers to and from other sectors, etc.) for which corresponding variables or proxies can be found on the Social Policy Simulation Database and Model (SPSD/M). For each of these components, the MEA benchmark is distributed over SPSD/M households according to the distribution shown for the corresponding SPSD/M variable or proxy.

Unlike household disposable income, sub-annual microdata are not available for household consumption expenditures. Therefore, the distributed estimates of household final consumption expenditures (HFCE) are compiled by applying the latest available annual distributions to the aggregate quarterly HFCE at the product category level.

In order to more accurately reflect sub-annual demographic trends in the household population, household counts for the 2019 reference year are adjusted using quarterly growth rates starting in reference year 2020. Sub-annual household counts are created using quarterly data available from a credit rating agency that collects data from financial institutions on household liabilities. Household counts are used to present income, consumption, and saving estimates by distribution category on an average dollars per household basis.

Quality evaluation

Estimates from the Distributions of Household Economic Accounts (DHEA) for income, consumption and saving are benchmarked to aggregates that are aligned with the most recent international standards through the Macro-Economic Accounts (MEA). The benchmark aggregates used to produce DHEA estimates are derived from the most complete and high quality data sources available, including administrative data files from the Canada Revenue Agency, household survey files, as well as information from pension funds, financial institutions and government public accounts.

Within each DHEA distribution category, the values of each income, consumption and saving subcategory are estimated directly from the Social Policy Simulation Database and Model (SPSD/M) and Survey of Household Spending (SHS), either using variables that correspond directly with the associated MEA concept, or indirectly using proxy variables derived from another SPSD/M or SHS variable.

As part of the DHEA data quality assessment process, a number of adjustments are applied to the SPSD/M and SHS distributions by income, consumption and saving category at the micro and/or macro levels to minimize discrepancies with economic and demographic trends observed from other data sources, such as from surveys and government administrative data.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects that could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Revisions and seasonal adjustment

Revisions - Statistical revisions are carried out in order to incorporate the most recent information from surveys, tax data, public accounts, censuses, etc.

Data are released approximately 120 days after the reference period. Estimates for each quarter are revised when those for subsequent quarters of the same year are published. At the time of release of third quarter estimates for each year, revisions are generally made back three years. The Distributions of Household Economic Accounts (DHEA) are not normally revised again except when comprehensive revisions are carried out.

Seasonal adjustment - Quarterly DHEA data series are unadjusted for seasonal variation.

Data accuracy

Estimates from the Distributions of Household Economic Accounts (DHEA) are aligned with aggregates derived through the Provincial and Territorial Economic Accounts for household income, consumption and net saving. Distributions for various socio-economic and demographic categories - such as by age group, province, income quintile, etc. - are based mainly on those available through the Social Policy Simulation Database and Model (SPSD/M) and the Survey of Household Spending (SHS). In certain cases, based on further review and evaluation, preliminary estimates may be adjusted to ensure accuracy and plausibility in the development of DHEA estimates for release.

Documentation

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