National Economic Accounts: What’s New and What’s Coming

Carol E. MoylanNational Economic Accounts Data Users’

ConferenceOctober 15, 2007

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Purpose of this Users’ Conference

For BEA to hear from you. For us to provide information to

you about: BEA’s national accounts BEA’s plans Issues that BEA faces

To give you an opportunity to meet us.

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BEA Strategic Plan

Priorities for national economic accounts: Addressing data gaps and other

shortcomings Improving consistency and

integration with other accounts Improving consistency with

international standards.

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What’s New?

Research and development satellite account Updated estimates released September 2007

(article in October 2007 Survey of Current Business).

First look at industry-level, regional, and international estimates of R&D investment.

Plan for implementation in benchmark input-output accounts and NIPAs for 2012/2013.

Integrated NIPA and Flow of Funds Accounts Joint project by BEA and Federal Reserve staff. Article in February 2007 Survey. Plans for regular update of estimates.

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What’s New? (cont’d)

Improved documentation for users: Release of paper reconciling growth rates

between the CPI and the PCE price index. Release of “Measuring the Economy: A

Primer on GDP and the National Income and Product Accounts.” This document is for novice users of the national accounts.

Release of “Introduction to the NIPAs (MP-1).” This is a more comprehensive introduction to the national accounts.

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Ongoing Research

Examples include: Health satellite account

a need for improved measures to guide policy discussions

Classification of personal consumption expenditures Modernization & improved

international comparability Issues in compensation and profits

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What’s Coming?

NIPA comprehensive revision –July 2009 — incorporate 2002 benchmark input-output accounts)

Updated international standards — System of National Accounts (2008)

Beginning in 2010 — flexible annual revisions.

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Strategic projects

Major conceptual changes that will be fully implemented after 2009:

Capitalize research & development Scheduled for 2013 comprehensive revision

Production account Part of updated SNA Joint work with BLS productivity program Estimates of labor and capital services for

all sectors.