1. 2008 and Beyond Carol Moylan Chief, National Income and Wealth Division National Economic Accounts Data Users’ Conference Washington, DC April 13, 2007

2. www.bea.gov 2 Comprehensive Revisions of the NIPAs  BEA prepares annual revisions of the NIPAs each July and comprehensive revisions every four to five years based on the release of the benchmark I-O table.  Revisions provide opportunity to make improvements to accounts as outlined in BEA’s strategic plan.  Next comprehensive revision will be released in October 2008.

3. www.bea.gov 3 Why have Comprehensive Revisions? ▪To incorporate benchmark I-O accounts ▪To keep up with a dynamic economy ▪To address data gaps and other shortcomings ▪To make the full time series consistent ▪To improve consistency and integration with other accounts ▪To improve consistency with international guidelines

4. www.bea.gov 4 Problem with Past Comprehensive Revisions Past comprehensive revisions: ▪Placed huge workload and stress on NEA staff:  More than 100 proposals were submitted for the 2003 revision;  Pressure to submit proposals because the next opportunity to make a needed change wouldn’t occur for another 4 or 5 years. ▪Place a large burden on users:  Several large changes to absorb at once.  Customers have been frustrated by the delays in release of tables in recent comprehensive revisions.

5. www.bea.gov 5 Future Comprehensive Revisions ▪Will continue to:  Incorporate latest benchmark I-O table.  Update the reference year for index numbers.  Address data gaps and improve consistency with other accounts. ▪Will provide option that definitional or major methodological changes may be implemented in a future annual revision.

6. www.bea.gov 6 Major Improvements for 2008 ▪Changes in definitions and classifications -- new treatment of disasters. ▪Changes in presentation (tables) -- new PCE classification. ▪Changes in source data and statistical methods -- misreporting of income.

7. www.bea.gov 7 Beyond 2008: Flexible Annual Revisions ▪Because of improvements in database technologies, number of years open to revision no longer the problem for users that it was previously. ▪Allow major changes to be introduced without waiting for comprehensive revisions. ▪BEA will focus on limited major changes in any given annual revision.

8. www.bea.gov 8 Flexible Annual Revisions (continued) ▪Better integration with Annual I-O and GDP by Industry estimates. ▪Priority will be given to proposals that are complete and ready for implementation. ▪Limited number of changes improves dependability and delivery of revised tables.