This page provides links to the methodologies used to prepare BEA's National, Industry, Regional, and International accounts data.
Note: These methodologies are periodically refined to incorporate new and better source data and improved estimating procedures. The refinements are described in articles in BEA's monthly Survey of Current Business (SCB) that present annual or comprehensive revisions to the estimates.
The "NIPA Handbook" begins with introductory chapters that describe the fundamental concepts, definitions, classifications, and accounting framework that underlie the national income and product accounts (NIPAs) of the United States and the general sources and methods that are used to prepare the NIPA estimates.
This paper introduces new users to the basics of the U.S. national income and product accounts (NIPAs). It discusses the economic concepts that underlie the NIPAs, and it describes the seven NIPA summary accounts. The Primer also provides a brief overview of the derivation of the NIPA measures and a list of references for further information.
The Bureau of Economic Analysis (BEA) has recently improved its estimates of current-dollar gross domestic product (GDP), current-dollar gross domestic income (GDI), and real GDP as part of the 2017 annual update of the national income and product accounts (NIPAs). The sources of data and the methodologies that are now used to prepare the NIPA estimates are summarized in this report.
The national income and product accounts (NIPAs) provide a timely, comprehensive, and accurate picture of the condition of the U.S. economy. The two featured measures, gross domestic product (GDP) and gross domestic income (GDI), are measures of the same concept of total activity in the U.S. economy. GDP measures activity as the sum of all final expenditures in the economy; it is detailed on the product side of the domestic income and product account. GDI measures activity as the sum of all incomes generated in production; it is detailed on the income side of the account.
This article analyzes the source data used to prepare the GDP estimates and the GDI estimates according to a set of criteria that reflects the quality, the availability, and the use of the data. This analysis allows for a better understanding of the differences between the source data that underlie the GDP estimates and those that underlie the GDI estimates and illustrates how the incorporation of the increasingly detailed and comprehensive source data leads to revisions to the GDP estimates and to the GDI estimates.
This article provides an overview of the government accounts. It describes the basic structure and concepts and provides a broad discussion on how the estimate are prepared. It concludes with a discussion of future directions for BEA’s government accounts.
This paper provides a comprehensive explanation of the conceptual basis and framework of the U.S. national income and product accounts (NIPAs). It describes the structure and purpose of the U.S. economic accounts, discusses the relationship between business and financial accounting and national economic accounting, and presents a derivation of the seven NIPA summary accounts from generalized production, income and outlay, and capital accounts for each sector of the economy.
Housing services are a component of personal consumption expenditures (PCE), and consequently part of GDP, in the national income and product accounts (NIPAs). The rental value of tenant-occupied housing and the imputed rental value of owner-occupied housing are both part of PCE housing services, reflecting the amount of money tenants spend for the service of shelter and the amount of money owner occupants would have spent had they been renting. Owner-occupied housing is included in PCE because the NIPAs treat the owner-occupant as if it were a rental business, or in other words, a landlord renting to him or herself. That is, BEA imputes a value for the services of owner-occupied housing (space rent) based on the rents charged for similar tenant-occupied housing, and this value is included in GDP as part of personal consumption expenditures. This imputation is necessary in order for GDP to be invariant when housing units shift between tenant occupancy and owner occupancy.
This article discusses the advantages of chain-weighted indexes and the challenges posed by chained dollars, outlines further steps that BEA will be taking to address these issues in the 2003 comprehensive revision of the national income and product accounts (NIPAs), and provides suggestions for using chained dollars in ways that reduce biases and errors in forecasting and other applications where components need to be aggregated. Highlights of this article include the following:
A review of the data on hedonic price indexes and their impact on real GDP growth shows no evidence of an overstatement in the measured decline in computer prices. The hedonic price indexes for computers produce results that are quite robust and that are virtually the same as those produced by a carefully constructed traditional price index for computers.
One major improvement in the upcoming NIPA revision will be the introduction of new featured measures of real output and prices. These measures, which will be chain-type indexes, will provide a more accurate picture of economic activity by allowing for changes in relative prices and in the composition of output over time. To facilitate sectoral trend and current-period analysis, BEA will expand the presentations of its estimates to include the contributions of major components to the growth in real GDP and dollar-denominated series that are calculated from the featured output indexes.
This article presents quarterly estimates of the alternative measures of change in real output and prices that BEA introduced in April 1992.l It also updates the annual estimates for 1988-90 to incorporate the results of the annual revision of the national income and product accounts (NIPA's) in July 1992 and extends the annual estimates to 1991.2 The alternative measures, which supplement BEA's featured fixed-weighted measures, are especially useful for studies of long-term economic growth, for comparisons of business cycles, and for gauging the effect of changes in the economy's relative
This article and the one that follows it, "Economic Theory and BEA 's Alternative Quantity and Price Indexes," present results of BEA's work on alternative measures of production and prices. These measures, which are designed to supplement BEA's featured fixed weighted measures, were first described in "Alternative Measures of Real GNP" in the April 1989 Survey of Current Business; in that article, BEA stated that it would develop the alternative measures as part of the next comprehensive revision of the national income and product accounts.
The current MP-5 comes seventeen years after the previous Government Transactions methodology paper, which was published in November 1988. It reflects improved estimation methodologies and it provides descriptions of new and better source data that are used to prepare estimates of government transactions. Most revisions to the sources and methods used to prepare estimates of government transactions presented in this revised MP-5 were described initially in articles that discussed comprehensive and annual NIPA revisions in BEA’s monthly journal, the Survey of Current Business.