Institutional Framework for Economic Statistics in Decentralized SystemJ. Steven Landefeld Director

Friends of the Chair Group on Integrated Economic Statistics, Work Group Meeting

June 6-8, 2007

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How Do Things Get Done in A Decentralized System?

The U.S. system produces a set of statistics that pretty well reflects what the U.S. public wants: Timely data that answers the “big

picture” questions, gets the answer “about right,” and doesn’t ask “too much” information from respondents

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How Do Things Get Done in A Decentralized System?

The system achieves this through: Coordination of selected infrastructure issues Strong degree of independence of major

statistical agencies Working with and listening very carefully to

customers (balancing needs of all customers) Responding to these customers by

Specializing and coordinating across agencies in research, innovation, and implementation in the development of new measures for these customers.

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Role of the Chief Statistician & Inter-Agency Council on Statistical Policy (ICSP)

Infrastructure Education – JPSM Best practices – OMB Quality and

Documentation Standards Principles for statistical agencies

Confidentiality, Independence, Professionalism

Common data dissemination – FEDSTATS Classification systems – NAICS, NAPS,

Regional Standards and Guidelines for: Data releases,

survey response rates, and accuracy

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Role of Chief Statistician & ICSP

Integration

Forms review – avoid duplication, minimize response burden

Cross cutting budget review Data sharing – CIPSEA and IITSA

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Role of Federal Economic Statistics Advisory Committee

Review of Cross cutting BEA, BLS and Census issues

Recommendations for improvements, including: Expansion of payroll survey Development of time use survey Development of financial services

prices

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Role of Intra-Agency Coordination

BEA/BLS PPI expansion for services, export-import prices, new

non-residential construction process, and integration of BEA-BLS employment and productivity data

BEA/Census Domestic services data expansion and assistance on

international services sample frame BEA/FRB

Stock options, pensions, LAN prices and integration of Flow of Funds and NIPAs.

BEA/FRB/Treasury Derivatives, short-term instruments, and tax havens

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Professional Associations & Interest Groups

BEA/NABE chain and hedonic indexes, more timely regional and

industry data, NAICS time series BEA/Coalition of Services Industries

expanded detail on international trade in services BEA/NBER-CRIW

Multinational Corporations, capital stock and deprecation, prices for new goods and services, medical care, intangibles and integration

BEA/AEA “New Economy,” “off-shoring”, corporate profits and

medical care BEA/ACCRA/AUBER

more timely, detailed, comprehensive regional data

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Role of BEA Advisory Committee

Blue ribbon panel of academics and business leaders

Recommendations carry weight beyond BEA Key role in all BEA and related system-wide

improvements in recent years Integration efforts across agencies Capitalization of R&D Better measurement of health care expenditures

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Role of Other Government Agencies

Federal Reserve Board, President’s Council of Economic Advisors, Treasury, Congressional Budget Office and others

Important for filling “gaps” where there is no constituency: Data sharing, services expansion, chain

indexes, and international capital flows

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What works in the Decentralized System

Resulting system good at providing timely measures on issues of interest to public and private decision makers: Rich set of monthly current indicators Timely quarterly GDP accounts data on key

issues of relevance to policymakers Regularly updated measures to reflect changes

in the economy. “Big Picture” accuracy through innovation and

the adoption chain indexes, hedonic measures, and other quantitatively important new methods.

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What Are the Challenges?

Challenges associated with decentralized system: Providing consistent and well integrated data Developing measures on issues/areas with no

constituency and Federal agency management

Challenges for all systems: Lack of well established conceptual foundation

and organizational framework (true of all national accounts)