Monday, April 22, 2013

Three Cheers for New Accounting

The U.S. is the first of its peers to adopt the 2008 System of National Accounts, an improvement on our original system (we shifted towards the SNA previously in the oughts).  Most prominently, it will include R&D research and intangible assets.

This is an improvement economists have long pushed for, showing the inclusion of intangible capital (while the capital is intangible, investment in it is not) can be important in our understanding of labor productivity.

No doubt this will bring out the raving-mad conspiracy theorists.  It is an exciting and long-awaited improvement to the National Income and Product Accounts.

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