A Balanced System of U.S. Industry Accounts and Distribution of the Aggregate Statistical Discrepancy by Industry
This article describes and illustrates a generalized least squares (GLS) method that systematically incorporates all available information on the reliability of initial data in the reconciliation of a large disaggregated system of national accounts. The GLS method is applied to reconciling the 1997 U.S. Input-Output and Gross Domestic Product (GDP)-by-industry accounts with benchmarked GDP estimated from expenditures. The GLS procedure produced a balanced system of industry accounts and distributed the aggregate statistical discrepancy by industry according to the estimated relative reliabilities of initial estimates. The study demonstrates the empirical feasibility and computational efficiency of the GLS method for large accounts reconciliation.
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Volume (Year): 30 (2012)
Issue (Month): 2 (February)
Pages: 202-211
| Handle: | RePEc:taf:jnlbes:v:30:y:2012:i:2:p:202-211 |
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