Improving national accounts

Abstract

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 modern administration systems.Practical implications – If the idea is fulfilled a new kind of national accounts suited for meaningful and analytical model applications will be avai...