Integration of U.S. macroeconomic accounts: a progress report

Business Economics, April, 2005 by Robert P. Parker

FIGURE 1 SNA STRUCTURE OF INTEGRATED ACCOUNTS

OPENING BALANCE SHEET
* (Value of assets, liabilities, and net worth)

CURRENT ACCOUNT
* Production account (GDP, consumption of fixed capital, compensation of
  employees, taxes on production and incomes less subsidies, net
  operating surplus)
* Distribution and use of income (income and outlay)

ACCUMULATION ACCOUNT
* Capital account (net fixed investment and net lending/borrowing)
* Financial account (net acquisition of financial assets and net
  incurrence of liabilities)
* Other changes in volume account
* Revaluation account (changes in net worth from holding gains/losses)

CLOSING BALANCE SHEET
* Changes in stock positions (changes due to capital formation, net
  lending/borrowing, revaluation of assets and liabilities, other
  changes in volume)
* Closing position (value of assets, liabilities, and net worth)

FIGURE 2 MAJOR DIFFERENCES BETWEEN THE SNA AND DRAFT SNA-USA SECTORS

NON-FINANCIAL CORPORATIONS
SNA-USA includes individually owned rental housing; excludes goverment
agencies and nonprofit institutions serving households that cover costs
with revenue; "large" non financial unincorporated businesses are
included in separate sector

FINANCIAL CORPORATIONS
SNA-USA includes "small" unincorporated businesses and excludes
government agencies and nonprofit institutions serving households that
cover costs with revenue

GENERAL GOVERNMENT
SNA-USA includes government agencies that cover costs with revenue
enterprise

HOUSEHOLDS
SNA-USA shows combined household and nonprofit institutions serving
households sector; excludes individually owned rental housing; "small"
unincorporated businesses are included in separate sector

NONPROFIT INSTITUTIONS SERVING HOUSEHOLDS
SNA-USA not shown separately

REST OF THE WORLD
No major differences

TABLE 1 COMPARISON OF NET LENDING/NET BORROWING IN DRAFT SNA-USA:
SELECTED SECTORS

                                         (Billions of dollars)
Sector                                 1985    1990    1995    1999

Household and nonprofit institutions
serving households:
Capital account                        162.8   152.1    67.7  -147.7
Financial account                      183.9   313.1   118.5  -155.8
Statistical discrepancy                -21.1  -161.0   -50.9     8.1

Non-financial corporate business:
Capital account                        -11.5   -25.7   -36.7  -124.3
Financial account                     -167.7   -59.2    35.5   -17.7
Statistical discrepancy                156.2    33.5   -72.3  -106.6

Financial business:
Capital account                        -17.5     2.3    23.2    15.6
Financial account                        2.2    -6.1    68.7    52.2
Statistical discrepancy                -15.3     8.4   -45.5   -36.5

Federal government:
Capital account                       -213.3  -208.2  -199.3   101.3
Financial account                     -246.2  -193.9   180.4   105.4
Statistical discrepancy                 33.0    14.3   -18.8    -4.1

State and local government:
Capital account                          1.6   -37.7   -33.0   -22.3
Financial account                       -9.2   -23.5     0       9.9
Statistical discrepancy                 10.8   -14.2   -33.1   -32.1

                                      (Billions of dollars)
Sector                                 2000    2001    2002

Household and nonprofit institutions
serving households:
Capital account                       -153.6  -209.9  -171.0
Financial account                     -269.2    -9.7  -280.6
Statistical discrepancy                115.6  -200.2   109.7

Non-financial corporate business:
Capital account                       -205.5   -75.3    45.2
Financial account                      -28.2    82.4    14.4
Statistical discrepancy               -177.3  -157.8    30.8

Financial business:
Capital account                         14.4    89.3   124.5
Financial account                     -136.7   -19.1   -10.1
Statistical discrepancy                151.1   108.4   134.6

Federal government:
Capital account                        189.3    45.4  -258.7
Financial account                      198.0    -2.3  -269.3
Statistical discrepancy                 -8.7    47.7    10.6

State and local government:
Capital account                        -30.3   -61.0   -86.9
Financial account                       -7.1   -39.5   -81.7
Statistical discrepancy                -23.2   -21.5    -5.2

Source: Teplin, et al. 2004 and BEA website www.bea.gov.