Designing Nonmarket Accounts for the United States Interim Report (2003) / Chapter Skim
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3 A Conceptual Framework
3 A Conceptual Framework
Pages 18-30
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From page 18... ...
In endorsing the framework usect in the existing national accounts, the pane} is arguing for an approach that uses dollar values as a metric; seeks to value outputs at their marginal rather than their total value; and derives these marginal values wherever possible from observable market transactions. Each of ~Though, as discussed above, the Bureau of Economic Analysis (BEA)
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From page 19... ...
that implementing such a structure for measuring nonmarket outputs will Dose 1 1 1 1 1 1 ~ 1 ~ , 1 1 1 · 1 · 1 · 1 1 s~=n~cant challenges, and that methodological compromises may be required during intermediate steps of the accounts' development. INTEGRATING CORE AND SATELLITE ACCOUNTS- OR NOT Icleally, an experimental set of expanclect accounts would integrate market and nonmarket components.
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From page 20... ...
It might be possible, also, to tailor nonintegrated satellite accounts more specifically for the uses to which they are most often put. For example, environmental accountants might choose to inclucle consumer surplus values for some purposes, while researchers working on househoIc!
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From page 21... ...
Aciclitionally, for some accounts, it may be reasonable to lift the requirement that input and output sides must balance it is certainly possible to envision certain nonmarket activities reacting to a "social profit."6 In contrast to the core market accounts, clouble-entry bookkeeping in the sense of trying to reconcile sums of output-basec! values and input-based values for the nonmarket accounts may be a fruitless exercise.7 The 6If possible, it would be informative to explicitly estimate "operating surplus" or "social profit." For example, in household production, one could deduct the imputed labor, capital, and intermediate input costs from the separately imputed value of laundry, decks built, etc.
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From page 22... ...
In sum, the pane} believes there to be a strong argument for adapting the cloubleentry bookkeeping that characterizes the existing national accounts for use in any supplemental accounts relating to nonmarket activity, even though such clouble-entry bookkeeping generally will not serve the exactly same role in the supplemental accounts as it does in the core accounts. Monetary versus Nonmonetary Units of Measurement One question that has been debatec!
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From page 23... ...
recognizes the difficulty of fincting clear market substitutes for certain goods and services anal of estimating the ways in which market values may deviate from social welfare because of externalities and other market imperfections. The panel will likely place higher priority on areas of nonmarket accounting for which valuation can draw from market comparisons.
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From page 24... ...
Jaszi's observation serves to highlight the extent of the problem that there is no clear conceptual distinction between intermediate and final consumption from the standpoint of all potential uses but it floes not provide a clear solution. ~ ~ ~ view of the above arguments, it clearly is not useful to declare all consumption as "interrnecliate." But simply following tradition ant!
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From page 25... ...
Although there are practical difficulties that complicate estimation of the stock of capital equipment used in home production, the basic approach is well developed. i2 An especially important nonmarket input on which, until very recently, quantity data have been lacking is the time devoted to nonmarket production.
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From page 26... ...
The outputbased calculation recognizes that the nonmarket work time is more productive when combined with greater household capital, which is more consistent with the assumptions typically made regarding valuation of market output. Marginal Versus Total Valuations Attaching dollar values to nonmarket inputs and outputs, as the panel favors, leads to additional questions.
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From page 27... ...
in this direction creates unacceptable measurement errors or has little policy value. As noted above, the pane} may be willing to sacrifice some consistency anct the ability to integrate some sectors, especially in the early stage of developing nonmarket accounts, if so doing produces useful results for policy.
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From page 28... ...
places value on the nonmarket accounting effort, as well as on the accounts themselves. Nonmarket accounting deserves support even if the likelihood of quickly generating a complete and consistent set of accounts appears slim.
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From page 29... ...
Valuing nonmarket outputs often will be more difficult. A guiding principle might be to treat nonmarket goods and services as if they were produces!
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From page 30... ...
Again, however, it may be possible to develop measures of the value of these outputs on the basis of market transactions. The levels of many, if not all, of these nonmarket outputs are likely to differ across localities.
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