Question
Why is FYHHAVGQ so much higher than YHHAVGA?
Answer
The Moody's Analytics forecast concept FYHHAVGQ and the historical concept YHHAVGA both describe "average household income" but define "income" differently. The forecast uses the U.S. Bureau of Economic Analysis (BEA) estimate of personal income, which is more comprehensive than the definition used by the Census Bureau (BOC).
Average household income = Aggregate income / Number of households
The BEA, through its National Income and Product Accounts (NIPA), measures income through government and business sources, whereas the BOC and its Current Population Survey (CPS) use household interviews. The BEA's definition is more inclusive; the BOC's is subject to underreporting. Hence, the numerator in the above calculation is much larger in the case of FYHHAVGQ.
For a full comparison of the types of income counted by the BEA and BOC, and other methodological differences, please consult these official documents:
To borrow a linguistic term, think of average income concepts FYHHAVGQ and YHHAVGA as "false cognates" -- the names are similar but the meanings aren't. Conversely, the forecast and historical measures of median income (FYHHMEDQ and YHHMEDA) use compatible definitions and have similar values.
| Concept |
Description |
Source(s) |
Range |
Freq |
| |
Average household income |
|
|
|
| YHHAVGA |
Average household income, ($) |
BOC CPS |
1967-2011 |
A |
| FYHHAVGQ |
Forecast average household income, ($, SA) |
BOC; BEA; MA |
1960-2043 |
Q |
| FYPQ |
Forecast aggregate personal income, (Bil. $, SA) |
BEA; MA |
1947-2043 |
Q |
| FHHOLDQ |
Forecast total households, (Ths. #, NSA) |
BOC; MA |
1960-2043 |
Q |
| |
Median household income |
|
|
|
| YHHMEDA |
Median household income, ($) |
BOC CPS |
1967-2011 |
A |
| RYHHMEDQ |
Estimated median household income, ($) |
BOC; MA |
1967-2010 |
Q |
| FYHHMEDQ |
Forecast median household income, ($, SA) |
BOC; MA |
1967-2043 |
Q |
Dates are illustrative, as of July 2013. For up-to-date metadata, please consult Mnemonic 411.
Related Releases
American Community Survey (ACS) - 1-Year Estimates
American Community Survey (ACS) - 3 Year Estimates
Median Family Income - State, Metropolitan Area and County (Quarterly)
Median Household Income - State, Metro and County (Quarterly)
Selected CPS tables on Household and Household Income
U.S. MSA Forecast
U.S. State Forecast