The Integrated Financial and Real System of National Accounts for the United States: Does It Presage the Financial Crisis?
AbstractThe initial implementation of the System of National Accounts (1993) for the United States by the Bureau of Economic Analysis and the Federal Reserve Board has two significant advantages for economists. First, the SNA are organized according to sectors of the economy defined by economic agents: firms, financial institutions, consumers, governments and the rest of the world. Second, the accounts integrate real and financial information, so that one can track not only production of, income from, and use of output, but also net lending, net borrowing, and net worth by sector. We exploit these two features in the SNA accounts to examine US economic history leading up to the financial crisis of 2007 and recession of 2008. First, the SNA data show recent increases in leverage in the household sector. We track the household shift to a net lending position through the capital and current accounts of the household sector and then the other SNA sectors. Second, in the financial businesses sector, the accounts largely miss the rise in exposure to the US housing market as well as the critical factors that significantly spread and amplified the housing-market related changes throughout the financial system and the real economy. Finally we present three ways in which SNA-type accounts could be improved to presage a similar future crisis.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 99 (2009)
Issue (Month): 2 (May)
Other versions of this item:
- Michael G. Palumbo & Jonathan A. Parker, 2009. "The Integrated Financial and Real System of National Accounts for the United States: Does It Presage the Financial Crisis?," NBER Working Papers 14663, National Bureau of Economic Research, Inc.
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rochelle Antoniewicz & Susan Hume McIntosh & Charles Ian Mead & Karin Moses & Brent Moulton & Michael Palumbo & Genevieve Solomon & Albert M. Teplin, 2004.
"Integrated macroeconomic accounts for the United States: draft SNA-USA,"
Finance and Economics Discussion Series
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- Albert M. Teplin & Rochelle Antoniewicz, 2006. "Integrated Macroeconomic Accounts for the United States: Draft SNA-USA," NBER Chapters, in: A New Architecture for the U.S. National Accounts, pages 471-540 National Bureau of Economic Research, Inc.
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- Matthew J. Eichner & Donald L. Kohn & Michael G. Palumbo, 2010. "Financial statistics for the United States and the crisis: what did they get right, what did they miss, and how should they change?," Finance and Economics Discussion Series 2010-20, Board of Governors of the Federal Reserve System (U.S.).
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