On July 30, the Bureau of Economic Analysis will release its annual update of the national income and product accounts (NIPAs) in conjunction with the advance estimate for the second quarter of 2015. As is usual for annual NIPA revisions, the revised estimates will incorporate newly available source data that are more complete, more detailed, and otherwise more reliable than those that were previously incorporated.
This year’s annual revision will introduce the following:
- An improved treatment of federal refundable tax credits in the personal income and outlays account and the government receipts and expenditures account.
- Two new aggregates—the average of gross domestic product (GDP) and gross domestic income (GDI) and final sales to private domestic purchasers—that will facilitate the analysis of macroeconomic trends.
- Improvements to the seasonal adjustment of GDP components, including federal defense spending on services, and of the source data underlying several other NIPA components.
- An expanded presentation of payments and receipts of transfers and taxes between the United States and the “rest of world” that will harmonize the NIPA presentation of these transactions with the presentation in BEA’s international transactions accounts (ITAs).
- An improved presentation of exports and imports that provides detail on exports of petroleum and products that will align the NIPA presentation of trade in industrial supplies and materials with the presentation in the ITAs.
Read the entire article in the June Survey of Current Business.
Recently, a growing number of articles in the media have noted U.S. corporations announcing that they intend to move their headquarters overseas. This practice is known as a corporate inversion, which occurs when a U.S. corporation that is currently the ultimate owner of its worldwide operations takes steps to become a wholly owned subsidiary of a foreign corporation.
The Bureau of Economic Analysis (BEA) has published a BEA Briefing in the Survey of Current Business that discusses how corporate inversions can affect major aggregates in the international and national economic accounts, including an estimate of the size of the impact of inversions on related BEA statistics.
Below are some highlights from the Briefing. For the full analysis and to view the impact of inversions on activities of multinational enterprises (AMNE) statistics see the BEA Briefing.
- The foreign direct investment position in the United States—which comprises the direct investors’ equity in, and net outstanding loans to, their U.S. affiliates—generally increases after an inversion because the inverting U.S. corporation becomes an asset of a foreign investor.
- The measures of multinational enterprise activities—which include data items such as employment, capital expenditures, value added, and research and development (R&D) expenditures—also generally increase as a result of inversions.
- Corporate inversions may also affect BEA’s U.S. direct investment abroad, or outward direct investment, statistics if the U.S. multinational enterprise transfers the ownership of some or all of its foreign affiliates to its new foreign owner.
- Corporate inversions would generally reduce gross national income, that is, income resulting from the current production of goods and services by U.S.-owned labor and capital.
- Corporate profits, the portion of the total gross national income earned from current production that is accounted for by U.S. corporations, would also generally be reduced by inversions.
Gross domestic income, which is income resulting from the current production of goods and services in the domestic economy, would not be affected by inversions.
New statistics tracking the changes in the prices to treat different diseases are slated to be available Thursday, Jan. 22 when the Bureau of Economic Analysis publishes a new health care satellite account report.
The statistics – the first of their kind – provide information about the changes in prices to treat different diseases – illustrating trends in prices over time. The statistics cover 2000-2010 and will be contained in a report published in the January Survey of Current Business. Another new set of annual statistics that track how much is spent to treat different diseases over that same 10-year period also will be released. These new statistics are derived from large medical claims databases that include millions of individuals and billions of claims.
BEA’s new detailed, health care statistics will provide businesses, households and policymakers with even more data to make informed decisions.
These new health care statistics emerge from a multiyear project to improve the way health care spending is measured throughout the U.S. economy. Health care spending is an important part of the U.S. economy, accounting for 17.4 percent of Gross Domestic Product in 2013, according to the Centers for Medicare and Medicaid Services.