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An Examination of the Statistical Discrepancy and Private Investment Expenditure

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  • Christopher Bajada

    (University of Technology, Sydney Broadway)

Abstract

The statistical discrepancy is often used to gauge the reliability of national accounts data. Particularly since the mid-1980Â’s the statistical discrepancy in Australia has grown significantly in size and variance. In this paper we demonstrate that the overwhelming contribution to the size of the statistical discrepancy is mismeasurement of private investment expenditure. We demonstrate that this mismeasurement not only adds to the volatility of investment but may have a significant impact on the volatility of the business cycle in general.

Suggested Citation

  • Christopher Bajada, 2001. "An Examination of the Statistical Discrepancy and Private Investment Expenditure," Journal of Applied Economics, Universidad del CEMA, vol. 4, pages 27-61, May.
    • Handle: RePEc:cem:jaecon:v:4:y:2001:n:1:p:27-61
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    statistical discrepancy; national accounts; investment; business cycles;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access

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