Improving national accounts
Purpose - To present empirical and theoretical evidence that our national accounts are improper for model applications. To propose a design for a micro foundation of the basic economic data that will give analytical national accounts. To present arguments for the need for an academic and scientific foundation of national accounting. Design/methodology/approach - Reviews published works in the field. In the theoretical discussion simple index algebra and Edgeworth-Bowley boxes are used. Findings - Shows that conventional accounting methods and deflation procedures imply inconsistent national accounts. Research limitations/implications - To fulfill the idea presented, that new designs for sampling of basic data-based on new data technology have to be considered and developed. Also a new accounting system has to be developed based on modem administration systems. Practical implications - If the idea is fulfilled a new kind of national accounts suited for meaningful and analytical model applications will be available. The need to revise national accounts will not be a case to consider. Originality/value - The paper presents theoretical evidence that our national accounts are not analytical, which is requirement for meaningful model applications. National account users should be interested in the proposal and result.
accounting systems cybernetics economic doctrines national economy