Download This PaperA Guide to the Use of Chain Aggregated Nipa
21 Pages Posted: 19 Aug 2000
Date Written: June 2000
Abstract
In 1996, the U.S. Department of Commerce began using a new method to construct all aggregate "real" series in the National Income and Product Accounts (NIPA). This method employs the so-called "ideal chain index" pioneered by Irving Fisher. The new methodology has some extremely important implications that are unfamiliar to many practicing empirical economists; as a result, mistaken calculations with NIPA data have become very common. This paper explains the motivation for the switch to chain aggregation and then illustrates the usage of chain-aggregated data with three topical examples, each relating to a different aspect of how information technologies are changing the economy.
JEL Classification: E0, C43
Suggested Citation: Suggested Citation
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