Disposable Income
Why Use This Data Source In Your Models?
Disposable income measures the total income remaining after deduction of taxes & other mandatory charges. This is used to indicate American's financial health and predict consumer behavior and economic growth.
Disposable Income
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Suggested Treatment:
Grain Transformation:
Source:
U.S. Bureau of Economic Analysis
Release:
Disposable Income
Units:
Billions of Chained 2012 Dollars, Seasonally Adjusted Annual Rate
Frequency:
Monthly
Available Through:
03/31/2025
Suggested Treatment:
The data shows auto correlation and a non-normal distribution. The data should be differenced. While the Order Norm transformation, provides the best normality, the Yeo Johnson variable will also perform well.
Grain Transformation:
Data is able to be distributed by geography but not by time. The roll up method used is Sum.
Auto Correlation Analysis:
Data shows auto correlation indicating a need for differencing
The ACF indicates 1 order differencing is appropriate.
Following first order differencing, no further differencing is required based on the differenced ACF at lag one of -0.54
Trend Analysis:
The Kwiatkowski-Phillips-Schmidt-Shin (KPSS) test, KPSS Trend = 0.13 p-value = 0.08 indicates that the data is stationary.
Distribution Analysis:
The Shapiro-Wilk test returned W = 0.95 with a p-value =0.00 indicating the data does not follow a normal distribution.
A skewness score of 0.60 indicates the data are moderately skewed.
Hartigan's dip test score of 0.05 with a p-value of 0.03 inidcates the data is multimodal
Statistics (Pearson P/ df, lower => more normal)
Auto Correlation Function
Auto Correlation Function After Differencing
Partial Auto Correlation Function
Seasonal Impact
Seasonal and Trend Decompostion
Citation:
U.S. Bureau of Economic Analysis, Real Disposable Personal Income [DSPIC96], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DSPIC96, December 15, 2019.