1/19/12

It is better to see one time than to hear 100 times

I have mentioned that the graph shown by Lane Kenworthy
has a significant problem with data. Here is a graph from my paper from 2005 on average (and median) personal income in the USA.

Fig. 3. Ratio of the total number of people and the number of people with income in various age groups. The youngest group is characterized by a participation factor of 0.75. During the late 1970s, participation factor in other age groups increased from 0.82-0.85 to 0.92 -0.99.

One can see that personal income definition was dramatically revised around 1977 and the portion of people with income jumped by 10% to 15%. The values above 1.0 also manifest the absolutely stupid difference between people counted by the BLS and the Census Bureau. There are to United States according to their statistics. The BLS does not take into account the closure error after decennial censuses and thus uses wrong populations, as I mentioned many times in this blog.
All in all, it is very suspicious that the deviation between GDP per capita and median income started the very same time.

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