National Accounts Methodology

The edition of System of National Accounts issued in 1993 developed the study of the system of national accounts to a second new high level, which is the highest level beyond the memory of men. Accordingly, since 1993 the study of SNA stepped into a 損ractice?phase. In the phase, with the application of the 93SNA framework in the world and the focus on the sustainable development and environment, the study and the works of SNA emphasize particularly on the solution of practical problems. In other words, the study of SNA itself or methodical study appears a little thin and weak. We can say that there is almost no breakthrough on SNA and methodical study from 1993. The paper I present now is a collection of what I has learned from the study and the research. This study of SNA is fundamental. The questions I thought about SNA can be presented as 搘hy? I wish it could be helpful for the development of SNA and the improvement of Chinese SNA. It has four sections: First, I study the theory and intrinsic methods of SNA as a kind of statistical filter. It includes two parts, one is putting forward and developing the information confusion and SNA filter theory, the other is reviewing the SNA filter technically. The interference of information confusion is getting serious for macro- and micro-economy. But it is not realized clearly and lack of theoretical research. On the 9 basis of definition of information confusion, I try to analyze the causes inside and outside the system and extend the filter theory to resolve it. It means that I apply the theory from the field of natural science to the field of social science, and put the scattered filter theory into an economic framework. And then I put forward the SNA filter theory dealing with information confusion and analyze the nature and the linkage with data mining. The filter theory is statistical filter virtually including two levels: basic and material filters. Basic filter deals with information confusion with SNA抯 own accounting principles and entry. Material filter aims at the special information confusion. Here I focus on two kinds of information confusion梩he trade with unconformity of the natures of law and economics, the monetary illusion 2 ABSTRACT with price change. For the former, we can deal with it through rearrangement and dummy trade. And for the latter, we can use the decomposing technology. In the second section, the overflow of welfare is discussed. SNA asks us keep the principle of three dimensions equal in the accounting of GDP??the product Approach, the income approach and the expenditure approach. As we know, the result of the product Approach always can抰 meet with the result of the expenditure approach. This difference always is ignored and classified into statistical error. I oppugn it. There are deficiencies in the accounting of output, e.g. ignoring non-market outputs. When non-market output is the important part of total output. the ignore distorts the quality of the total output accounting. That is, the value is missed. And these missing values result in the difference between the product approach and the expenditure approach. In order to resolve this question, we can adopt two paths: improvement of non-market outputs accounting to direct accounting approach; or keeping the production accounting and expenditure accounting independent and putting emphasis on t...