Research on Consumer spending by states Mathematics & Economics Essay

Consumer Spending By State
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Consumer Spending By State
The article “Consumer Spending by States: BLS Puts New Jersey to the Test” by Taylor Wilson depicts the importance of the consumer expenditure (CE) survey. Based on the Bureau of Labor Statistics (BLS), CE refers to the money spent by individuals in a specific region to buy durable or nondurable products and services. Such a measure is crucial since it shows how the government and other relevant stakeholders can use the consumer spending patterns of people in a particular region. The two primary phrases that one should understand when performing the CE survey include the consumer unit and household. The latter comprises a physical dwelling. The former refers to people living in a household, related by marriage, legal arrangements, adoption, and blood, who make the expenditure decisions together. When calculating the CE, consumer units are assigned different weights depending on individuals’ spending habits. Wilson’s article enables one to understand the topic of consumer spending, particularly by taking the reader through the CE of New Jersey.
Wilson depicts that the BLS conducts surveys to determine the CE of different states. In particular, the CE gives the estimate of total consumer expenditures for distinct products and services. Besides, the BLS conducts a national survey, which is used for comparison purposes. The CE population weights are usually designed to be equal with that of the consumer units in the United States of America (USA). Indeed, they are calibrated to give estimates of the CE population for different subnational geographies, such as the metropolitan statistical areas (MSAs) (Wilson, 2018). The CE survey facilitates the analysis of various sectors in the consumer market basket of a particular region. For example, it captures expenditures for housing, entertainment, education, apparel, food, healthcare, and transportation. Specifically, understanding state-level consumer spending is critical to the improvement of living standards in a specific place such as New Jersey. However, not many states have the CE data that would help them to improve the conditions of their residents. The weight constitutes essential data of the target population, such as household composition, gender, and race. The state government can obtain reliable statistical inferences from the income estimates and the state-level expenditure. In that case, it can focus on issues that affect many individuals in a particular region. For example, one of the most significant problems that many people in New Jersey encounters is housing. The cost of buying properties and renting houses keep rising due to the high population density of 467.2 people per square kilometer (Wilson, 2018). As such, the demand for houses and the cost of living are high.
Through the example of New Jersey’s CE calculation, Wilson makes it clear that the data obtained can be used in economic development. The state weighted expenditure estimates are usually calculated by using national consumer spending data. On that note, the data acquired from a specific state can be compared to that of others. For instance, in 2016, the total CE...