National Income and Product Accounts

A method used by BEA to prepare estimates of the net stock of fixed assets, which, in turn, are used in deriving the NIPA estimates of consumption of fixed capital. For each type of asset, the net stock in each year is calculated as the cumulative value of gross investment through that year less the cumulative value of depreciation through that year. A variation of this method that omits depreciation is used to derive the stocks of private inventories.

In classification by legal form of organization in the NIPAs, partnerships comprises all entities that are required to file federal partnership income tax returns, IRS Form 1065 (U.S. Return of Partnership Income).

A quantity or price index for an aggregate in which the formula weights are taken from the current or more recent time period. Thus, in computing a Paasche quantity index, the quantities in each time period are multiplied by the current-period prices.

A NIPA imputation that approximates the value of housing services provided to occupants who own their homes. This imputation is made so that the treatment of owner-occupied housing is comparable to that for tenant-occupied housing (which is valued by rent paid).

A form of production in which establishments produce fixed assets for themselves rather than purchasing them from another establishment. For example, a business engages in own-account investment if it develops or improves its own software rather than purchasing custom-made software from a software-development company. Formerly termed “force- account” investment.

A comprehensive, demand-oriented product classification system that is being developed by the United States, Canada, and Mexico asa complement to NAICS.

See “Foreign residents.”

Component of nonresidential fixed investment that consists of intangible products—whether purchased or produced for own use. In the NIPAs, these products consist of software, of research and development, and of entertainment, literary, and artistic originals.

Private organizations with tax-exempt status that primarily provide services to households in one of the following categories: religious and welfare (including social services, grant-making foundations, political organizations, museums and libraries, and some civic and fraternal organizations); medical care; education and research; recreation (including cultural, athletic, and some civic and fraternal organizations); and personal business (including labor unions, legal aid, and professional associations). Does not include nonprofit institutions that primarily serve business.

Nonfinancial assets that are used for production but were not themselves produced. They include naturally occurring assets, such as land and mineral deposits.