Keywords: Integrated macroeconomic accounts, flow of funds, national income and product accounts
The integrated macroeconomic accounts (IMAs), produced jointly by the Bureau of Economic Analysis (BEA) and the Federal Reserve Board (FRB), present a sequence of accounts that relate income, saving, investment in real and financial assets, and asset revaluations to changes in net worth. In this paper we first provide some background information on the IMAs and on their construction. Next, we discuss the usefulness of the IMAs, focusing for instance on the evolution of household net worth and its components, a set of series that has appeared frequently in discussions of the causes and effects of the recent financial crisis. We also discuss some of the challenges associated with integrating nonfinancial and financial data sources, that is, the current and capital accounts statistics from BEA's national income and product accounts (NIPAs) and the financial account statistics from FRB's flow of funds accounts (FFAs). In the final section, we discuss future plans for improving the IMAs, including a proposed framework and methodology for breaking out the financial business sector into three subsectors: 1) Central bank, 2) Insurance and pension funds, and 3) Other financial business.
1. Background and evolution
The integrated macroeconomic accounts (IMAs) were developed as part of an interagency effort to further harmonize the Bureau of Economic Analysis's (BEA) national income and product accounts (NIPAs) and the Federal Reserve Board's (FRB) flow of funds accounts (FFAs). Work began on these accounts in 2002 and the first version of the tables was presented at the NBER Conference on Research in Income and Wealth, Architecture for the National Accounts in April 2004, with annual data for 1985 to 2002.3 A February 2007 Survey of Current Business article officially introduced the regular production of the IMAs.4 The System of National Accounts, 1993 (SNA) was used as the organizing framework in an effort to bring these accounts into closer accordance with international guidelines. While the resultant set of IMAs are largely in accordance with the SNA, there remain differences, particularly with respect to the way sectors are defined. The IMAs use a consistent set of sectors throughout the entire sequence of accounts, and these sectors are primarily based on definitions used in either the NIPAs or FFAs. In the SNA, institutions are grouped into five mutually exclusive sectors: 1) nonfinancial corporations, 2) financial corporations, 3) general government, 4) nonprofit institutions serving households (NPISH), and 5) households. In the IMAs, estimates are calculated and presented for the following seven, mutually exclusive sectors: 1) households and NPISH, 2) nonfinancial noncorporate business, 3) nonfinancial corporate business, 4) financial business, 5) federal government, 6) state and local government, and 7) rest of world. The primary difference is in the treatment of noncorporate business (which includes entities such as sole proprietorships, general partnerships, and limited liability partnerships, and government enterprises), which, with the exception of government enterprises, are classified as either nonfinancial noncorporate business or financial business in the IMAs. Government enterprise activities are reflected in the government sectors within the IMAs. In contrast, in the SNA, limited liability companies, limited partnerships and government enterprises are classified as "quasi-corporations" in the financial or nonfinancial corporate sectors and general partnerships and sole proprietorships are classified in the household sector.
Most of the IMA series are derived from published NIPA and FFA data. Current account and capital account statistics are based on NIPA data, while the financial account statistics are based on FFA data. The other changes in volume, revaluation, and balance sheet accounts reflect a combination of both BEA and FFA data. BEA provides FRB with unpublished data, where necessary, and the FRB is responsible for compiling the full set of integrated accounts. The IMAs are updated quarterly about 75 days after the end of the quarter and are published by both BEA and FRB. The BEA-supplied statistics for the most recent quarter typically reflect revisions to the previous quarter, with more substantial historical revisions stemming from the NIPA annual revision introduced with the September IMA release. The FRB-supplied statistics are not constrained by a set revision cycle and thus are open to historical revisions with each quarterly update.
Since initial publication of the IMAs in 2007, there have been several improvements implemented into these accounts. One of the more important improvements was the introduction in June, 2010, of quarterly IMA statistics, beginning with 1992. In June, 2012, those quarterly statistics were carried back to 1960. Slightly less detail is available quarterly in the current account, primarily reflecting insufficient source data on gross flows of property income paid and received. Another recent improvement is the introduction of farmland into the real estate component of the balance sheets for both corporate and noncorporate nonfinancial businesses. Estimates for farmland were developed primarily using Economic Research Service statistics, published by the United States Department of Agriculture. Later in the paper we discuss future plans for the IMAs.
2. Construction of the accounts
The IMAs link saving, capital accumulation, investment in financial assets, and balance sheet positions within an integrated framework with consistent definitions, classifications, and accounting conventions. Each of the seven sectors underlying the total economy has a full complement of accounts: the current account (production and distribution of income accounts), and the accumulation accounts (capital, financial, other volume changes, and revaluation accounts). These accounts allow one to trace the factors leading to changes in the net worth position on the balance sheet of each sector. As an example, in the next section, we will discuss the evolution of household net worth and its composition, a set of statistics that helps us understand the causes and consequences of the financial crisis.
Figure 1 provides a diagram of the sequence of accounts presented in the IMAs, described in more details in subsection 2.1. Roughly speaking, in the first account (current account), the IMAs record production and income. Subtracting consumption from income, we get net saving. Net saving is invested in real and financial assets, as shown in the capital account. If investment in real assets is smaller than saving, the difference can be lent to other sectors using financial instruments; otherwise, the difference must be borrowed. Net lending or borrowing thus link the "real" and the "financial" side of the economy. The next account, the financial account, records the lending and borrowing through the various financial instruments. We can link these real and financial investment flows to the balance sheet of the sector. To obtain the end of period balance sheet of a sector, we must add the capital formation, the net lending and borrowing in financial instruments, the holding gains on assets, and other changes not captured elsewhere.
2.1 A more detailed description of the accounts
We now describe in more detail each account and the progression from one account to the next, as depicted in figure 1 above. To better understand this progression, we can also refer to the published tables, for example, to the households and NPISH sector Table S.3.a, included, together with the tables for all sectors, in appendix B at the end of the paper.
The first account in the IMAs is the current account. Its first component (shown in green) is the production account, labeled number 1 in Figure 1, which shows the contribution made by each sector towards U.S. production, or gross value added5 (line 1 of Table S.3.a). The current account also details the components of production, including compensation and taxes paid, and operating surplus (lines 3-8).
The second part of the current account, the distribution of income account (labeled 2), records the various types of income received by the sector (such as compensation received and net interest and net dividends received), as shown in lines 9-19 of the households table.
After adjusting income by subtracting taxes and other payments and adding various transfers (lines 20-25), we obtain disposable income (line 26). Further subtracting consumption (line 27) from disposable income, we obtain net saving (lines 28).
For instance, considering the households and NPISH sector, the accounts show that the gross value added by the sector in 2010 was $1.8 trillion. In turn, the sector received an income of $10.9 trillion, which, after various adjustments, resulted in a disposable income about $10.8 trillion. Subtracting $10.2 trillion of consumption, the sector's net saving amounted to $0.6 trillion.
Net saving enters the capital account, the first in the sequence of accumulation accounts. The accumulation accounts describe the change in the sector balance sheet between its opening and closing position. There are four accumulation accounts: capital account, financial account, other changes in the volume of assets account, and revaluation account. The capital account, shown by the red boxes and labeled number 3, records transactions linked to the net acquisition of nonfinancial assets and capital transfers involving the redistribution of wealth used for the purchase of capital. This account consists of net capital formation (gross fixed capital formation less consumption of fixed assets), net capital transfers, acquisition of nonproduced nonfinancial assets and change in private inventories (lines 29-38). Each of these estimates is derived from estimates in the NIPAs and the fixed asset accounts published by BEA. Net capital transfers include transactions such as disaster-related insurance benefits, estate and gift taxes, and financial stabilization payments made by the federal government. Nonproduced nonfinancial assets transactions include purchases of land, payments for drilling rights, electromagnetic spectrum proceeds and miscellaneous international transactions. If net saving derived from the current account is smaller than capital accumulation, the sector is a net borrower, and if net saving is greater than capital accumulation, the sector is a net lender. This difference between net saving and capital accumulation is referred to as net lending (+) or net borrowing (-). As an example, in 2010, capital formation by the sector amounted to about $0.1 trillion. Since its saving was $0.6 trillion, the sector lent $0.5 trillion to the other sectors.
An alternate version of net lending/net borrowing (or NLNB) can be calculated from the financial account, shown as purple boxes and labeled number 4, by subtracting the net increase in liabilities (lines 70-80) from the net acquisition of financial assets (lines 40-69). In principle, the capital account and financial account measures of net lending/net borrowing should be the same, because saving that is not spent on purchases of fixed assets results in the acquisition of financial assets and borrowing that is used to finance the purchase of fixed assets results in the incurrence of financial liabilities. However, when compiling net lending/net borrowing from the capital and financial accounts, the values for the two measures are almost never equal because of differences in source data, timing of recorded flows, and other statistical differences between data used to create the measures. To reconcile the two measures, the difference between NLNB derived from the two methods (that is, line 81 minus line 38) is included as a statistical discrepancy in the other changes in volume account.
Looking again at 2010, the household sector acquired $0.5 trillion of financial assets, and decreased its liabilities by repaying about $0.2 trillion, resulting in a net lending of $0.8 trillion. Since the net lending obtained from the capital account amounted to about $0.6 trillion, there is a statistical discrepancy of about $0.2 trillion.
The other changes in volume account, shown as blue and labeled number 5, records the effect of exceptional events that cause either the value or volume of assets and liabilities to vary (lines 82-86). Included here are adjustments in classification and structure due to changes in data sources or calculations, disaster losses, nonproduced nonfinancial assets, and the statistical discrepancy described above. Disasters are generally defined as catastrophic events (such as hurricanes and earthquakes) with property losses exceeding 0.1 percent of GDP (which is currently about $15 billion). Nonproduced nonfinancial assets are included since they are not recorded on the balance sheet but are included in the capital account.
The last accumulation account is the revaluation account, shown as orange and labeled number 6, which records holding gains and losses stemming from changes in prices since the opening balance sheet position (lines 87-97). Typically, holding gains and losses account for most of the change in net worth on the balance sheet. One major difference between the SNA and the IMA tables is that debt securities (such as corporate bonds) are shown at book value rather than market value in the IMAs, and are therefore not shown in the revaluation account.
The closing balance sheet position is equal to the opening balance sheet position plus the changes recorded in the accumulation accounts, which are shown on the circle in figure 1, and are equal to the change in net worth for the sector. In the IMAs, we have chosen to use net lending/net borrowing as calculated from the capital account rather than the version calculated from the financial account, and, as mentioned above, the difference between the two measures (the statistical discrepancy) is recorded in the other volume changes account to be consistent with the balance sheet data.
Returning to our example, the household sector had a net worth of about $55.6 trillion at the end of 2009. In 2010, it saved about $0.6 trillion (as measured by the capital account). In addition, it gained about $2.6 trillion from changes in the prices of its assets. Further adding other changes of about $0.3 trillion resulting from other changes (and including the statistical discrepancy between the financial account, from which the balance sheet is derived, and the current account), the net worth of the end of 2010 thus amounted to about $59.1 trillion.
One point to note is that, for the household and nonfinancial business sectors, the balance sheet shows FFA estimates of the market value of real estate. These estimates are calculated using real estate price indices and net investment from BEA. For the financial business and government sectors, only the current-cost net stock of structures is shown because there are no reliable estimates for the market value of real estate. All balance sheets for domestic sectors show the current-cost net stock of equipment and software. For those sectors where total real estate is reported, it may be tempting to impute a value for land as the difference between the value of real estate and current-cost net stock of structures; this practice is not recommended, however, because the two measures are estimated independently and rely on different source data. For example, for the nonfinancial corporate business sector, the difference between real estate and net stock of structures is slightly greater than zero in 2009, suggesting that the value of land owned by this sector in 2009 was negligible. Nevertheless, it is useful to analyze and question the relationship between real estate and structures in order to better understand the underlying source data and methods used to construct these statistics.
Net Lending (+) or Net Borrowing (-) in the Capital and Financial Accounts, by Sector
|1. All domestic sectors:||C||-16||-109||-160||-472||-704||-671||-455||-481||-453|
|1. All domestic sectors:||F||-17||-88||-10||-476||-473||-1678||-404||-646||-274|
|2. Households & nonprofits:||C||56||135||88||-168||-126||373||488||535||476|
|2. Households & nonprofits:||F||78||209||146||-235||164||525||406||833||1037|
|3. Nonfin. noncorp. business:||C||-22||-38||-26||-49||-74||-53||14||6||-6|
|3. Nonfin. noncorp. business||F||-22||-37||-28||-101||-122||-53||14||6||-14|
|4. Nonfin. corp. business:||C||-21||-13||-26||-23||-94||-7||389||377||422|
|4. Nonfin. corp. business:||F||-42||-82||8||26||-206||-943||563||151||272|
|5. Financial business:||C||5||-20||-2||72||-3||-47||275||157||125|
|5. Financial business:||F||2||7||44||118||108||-267||46||-209||-146|
|6. Federal government:||C||-32||-166||-160||-215||-315||-756||-1446||-1462||-1357|
|6. Federal government:||F||-33||-181||-169||-236||-344||-780||-1289||-1362||-1328|
|7. State & local govts:||C||-2||-7||-34||-90||-93||-181||-175||-94||-113|
|7. State & local govts:||F||1||-4||11||-49||-72||-161||-144||-65||-95|
|8. Rest of the world:||C||-2||-74||117||559||716||674||378||480||484|
|8. Rest of the world:||F||-3||58||112||569||618||737||246||254||393|
|9. Statistical discrepancy||C||18||36||43||-86||-12||-2||77||1||-32|
1. Data in billions. Rows designated by "C" represent net lending or net borrowing calculated from the capital account; rows designated by "F" represent net lending or borrowing calculated from the financial account.
2. Equals rest of the world capital account net lending (+) or net borrowing (-) (line 8) less all domestic sectors' capital account net lending (+) or net borrowing (-) (line 1).
Source: Integrated Macroeconomic Accounts, June 7, 2012
3. Uses of the IMAs
The recent financial crisis has vividly shown that analyzing the change in net worth and its composition is critical to understanding the health, risks, and prospects of an economic sector. Net worth is a broad measure of the wealth of a sector, often used in conjunction with other variables, such as income and interest rates, to study variables such as consumption and saving. The IMAs enable one to analyze net worth and its composition, clarifying how the current balance sheet position came about by distinguishing between saving, borrowing, holding gains or losses, and other changes in volume.
As an example, we can look at the IMAs for the household and NPISH sector. In the first half of the last decade, the household sector shifted from being a major lending sector to a major borrowing sector (Table 1, line 2), rivaled only as a borrower by the federal government sector (line 6). It was at this same time that the rest of the world sector (line 8) became the predominant lending sector.
At the same time, household net worth surged rapidly and the ratio of household net worth to disposable personal income reached record levels (chart 1). This surge was caused not by elevated savings, but by sizable capital gains both on housing wealth and on stock-market wealth (chart 2).
Source: Integrated Macroeconomic Accounts, June 7, 2012.
Indeed, the ratio of both housing wealth and stock market wealth to disposable personal income surged to historically unprecedented levels (chart 3). Not surprisingly, household debt also ballooned. The ratio of household debt to disposable personal income surged from around 90 percent at the beginning of the decade to an all-time high of around 130 percent in the middle of 2007 (chart 4).
This ratio dropped to 111 percent by the end of 2011 as consumers borrowed less and as a significant amount of mortgage debt was written off. As can be seen in Table 1, line 2, the household sector shifted back to being a major net lender in 2008.
Net borrowing by the federal government (table 1, line 6), on the other hand, ballooned to over $1.3 trillion in both 2009 and 2010. In 2009, the rest of the world sector (line 8) was a significant lender, along with the financial business sector (line 5). The nonfinancial corporate business sector (line 4), traditionally a net borrower, became a net lender in 2009, as capital expenditures remained relatively low and retained earnings elevated.
4. Challenges in linking current, capital and financial accounts
One innovative feature of the integrated accounts is the ability to compare net lending/net borrowing calculated from the capital account with the alternative measure calculated from the financial account. As discussed above, in the capital account measure, a sector's net lending or net borrowing is the difference between its net saving (disposable income less current spending) and its net investment (gross purchases of "physical" capital less depreciation on its existing capital stock). In the financial account measure, a sector's net lending/net borrowing is the difference between its net acquisition of financial assets and its net increase in liabilities. Thus, except for statistical discrepancies, the two measures of a sector's net lending/net borrowing should be the same.
Chart 5 compares the capital account total net lending or net borrowing for all domestic sectors (the black line) with the financial account measure (the red line). The two lines are very close to each other and hover around zero until about 1980. From that point forward, the U.S. becomes an increasingly larger net borrower vis-à-vis the rest of the world. The two measures of net lending/net borrowing remain fairly similar, although the financial account measure is more volatile, until around 2008, the year of the financial crisis, when the two lines diverge sharply. This divergence could be partly due to data sources subject to historical benchmark revisions, but is more likely due to data gaps in the financial accounts. These data gaps could reflect off-balance sheet data that have not been captured completely, such as derivatives, or transactions taking place at a level of business structure not currently included in any sector in the accounts, such as nonfinancial holding companies. Also, the treatment of intangibles in the capital and financial accounts could be inconsistent. These data gaps and differences were probably more significant during the financial crisis, and perhaps unsurprisingly, when you compare the two measures of net lending/net borrowing by sector, as shown in table 1 above, the greatest differences appear to be for the nonfinancial corporate business sector (line 4) and the financial business sector (line 5). In 2009, the two measures of total NLNB (chart 5) moved closer together as the economy showed some improvement and have maintained a similar pattern in the most recent years.
Additional issues in comparing the capital account and financial account measures of net lending/net borrowing by sector could be due to the different treatment of debt charge-offs, as well as company- versus establishment-based statistics.
In the financial accounts, debt charge-offs are a component of NLNB, rather than of other changes in volume accounts, as suggested by the SNA. That is, if debt is charged off, net acquisition of assets falls and net lending decreases for the issuing sector. In other words, charge-offs are not distinguished from repayments. However in the NIPAs, charge-offs are not part of net lending/net borrowing as they do not directly change saving or investment. Before the most recent financial crisis, mortgage debt charge-offs for the financial sector were very small.6 With the financial crisis, however, charge-off rates increased rapidly from a few basis points to more than two percent as many houses entered foreclosure.7 Because the mortgage loans (an asset) are generally held by financial institutions and the corresponding mortgage debt is held by primarily by nonfinancial sectors, in particular households, charge-offs generate a discrepancy between the respective sectors' net lending and borrowing computed from the capital and financial accounts. Chart 6 shows a rough measure of charge-offs for both residential and commercial mortgages8 (the green line) exploding in 2008, which helps to explain the discrepancy in net lending/net borrowing beginning in 2008 (the distance between the black and the red line).
Finally, in the capital accounts, net lending/net borrowing reflects a mix of company- and establishment-based statistics, while net lending/borrowing from the financial accounts primarily reflects institutional-based reporting. NIPA measures of profits and interest are derived primarily from IRS tabulations of business tax returns, which are reported on a consolidated basis. Therefore, financial activities of captive finance companies (a subsidiary whose purpose is to provide financing to customers buying the parent company's product) are not reflected in the profits of the financial sector. Unfortunately, this is not an easily remedied issue. BEA is actively working with IRS to identify and obtain additional information on the activities of subsidiaries, which should enable us to better understand the financial sector.9
5. Future plans
5.1 Subsectoring finance
Following the financial crisis that began in 2008, members of the G-20 established the G-20 Data Gaps Initiative in an attempt to improve global financial statistics thereby potentially helping policy makers and market participants identify and address stresses in the financial system before another crisis occurs. One of the conclusions drawn was that sectoral data matter, and emphasis was placed on producing (and publishing) subsector detail for the financial sector. Specifically, one of the recommendations was "to develop a strategy to promote the compilation and dissemination of the balance sheet approach (BSA), flow of funds, and sectoral data more generally." In February 2011, the IMF and OECD jointly organized a conference on, "Strengthening Sectoral Position and Flow Data in the Macroeconomic Accounts." The following four financial subsectors, including their corresponding North American Industrial Classification System (NAICS) code, were proposed: 1) Central bank (521), 2) Other deposit-taking corporations (5221), 3) Insurance and pension funds (524 + 525110), and 4) Other financial business (remaining 52 and 55). The IMAs provide an excellent framework to address data gaps in the national accounts of a country and expanding the IMAs to include these additional tables should help analysts better evaluate the risk characteristics of different types of financial institutions.
While sufficient data exist to meet the subsectoring recommendations for the financial account, the current and capital accounts present a challenge. BEA and FRB initially attempted to follow the recommended subsectoring in the IMAs; however, we eventually concluded that there was insufficient data in IRS tax-return based estimates to accurately identify "other deposit-taking institutions" from "other financial business." Specifically, the consolidated IRS tax return-based statistics for bank holding companies (NAICS 551111 - mapped to "other financial business") include significant activity for subsidiaries classified as "other deposit-taking institutions" (NAICS 5221). To better understand the magnitude of activity of depository subsidiaries reported in IRS statistics as bank holding companies, BEA received a sample of bank holding company subsidiary data from 2010 preliminary IRS statistics. Our sample suggested that for 2010, within corporate bank holding companies, approximately 40% of receipts, 60% of interest received, and 20% of dividends received were attributable to subsidiaries associated with "other depository taking institutions," rather than "other financial business."
As mentioned in section 2.2 above, the nature of the company-based statistics presents some challenges for us and we are actively researching ways to address this. An additional challenge we faced with accommodating the proposed subsectors is that the NIPA industry-based estimates do not always contain sufficient NAICS detail. For example, the subsector "insurance and pension funds" reflects the sum of NAICS 524 (insurance) and NAICS 525110 (pension funds), however separate estimates for NAICS 525110 do not exist in the NIPAs.
As a first step toward completing this financial subsectoring in the IMAs, we are proposing to combine "other deposit taking corporations" with "other financial business." Even with combining two of the four subsectors, a number of assumptions are needed in order to derive the remaining subsectors. Nevertheless, publishing these additional tables should help analysts better evaluate the risk characteristics of different types of financial institutions. It should be noted that, with the exception of property income flows associated with government pensions, IMA estimates for total financial business (Table S.6 in the appendix) are unaffected by this proposal. It should also be emphasized that estimates presented for the subsectors are extremely preliminary and subject to change. Emphasis instead should be placed on the framework and methodologies described herein. The following sections briefly describe how each of the subsectors will be constructed.
5.1.1 Central Bank
The Central Bank, for purposes of the IMAs, is essentially defined as the Federal Reserve. The Federal Reserve is separately recognized under NAICS 521 and underlying detail already exists for many of the IMA series in the current, capital, financial, and balance sheet accounts. NIPA estimates for Federal Reserve (which underlie capital and current account data for this subsector) rely heavily on the Federal Reserve annual report as a primary data source, and include both the Federal Reserve Banks and the Federal Reserve Board. In this sector, gross value added is estimated from unpublished statistics from BEAs annual industry accounts (AIAs). For this specific industry/subsector, there is no distinction between company versus establishment so using AIA (establishment-based) in lieu of an indirectly derived NIPA (mostly company-based) estimate is not problematic. Compensation estimates are derived from unpublished NIPA detail, which are consistent with the AIA estimates. There are several series within the current and capital accounts for which no data are available (such as other current transfers and reinvested earnings on FDI abroad), and in these cases we have assumed that the values are zero. The net operating surplus (NOS) is derived residually.
In the financial accounts, the Central Bank subsector is defined as the monetary authority, that is, the assets and liabilities of the Federal Reserve Banks and the Treasury monetary accounts that supply or absorb bank reserves. It excludes the accounts of the Federal Reserve Board. For the financial accounts, the data come from the Federal Reserve statistical release H.4.1, Factors Affecting Reserve Balances. It is worth noting that the net lending/net borrowing series shown for the Central Bank is somewhat confusing because of the way Central Bank operations appear in the accounts (for instance, currency and deposits are a liability of the Central Bank). However, looking separately at the assets and liabilities, both in the financial accounts and in the balance sheet, can help to understand the behavior of the Central Bank. For example, the loans extended to financial institutions in 2008 and the operations related to the quantitative easing policies since the crisis are reflected in the sharp increase in the Central Bank's assets.
5.1.2 Insurance and pension funds
The insurance and pension fund subsector is defined as the NAICS insurance industry (524) plus pension fund industry (NAICS 525110). Within the current and capital accounts, estimating the insurance portion of this subsector is fairly straightforward because NIPA estimates for this industry currently exist and, in many cases, are published. Unfortunately, that is not the case with pension funds, as very little information currently exists in the NIPAs for this industry. Fortunately, most of the current and capital account series for pension funds are fairly small, with the exception of interest and dividends, which flow through pension funds into the household sector. Accordingly, we have assumed these small series, with no source data, are zero for pension funds and therefore only the receipts and payments of property income associated with pension funds are reflected in this subsector. Because these transactions pass through this subsector, there is no impact on net lending/net borrowing. Estimates for these flows were derived using data from multiple sources, but rely most heavily on statistics published in the FFAs (for pension asset compositions and interest rates), annual reports for Federal government retirement funds, IRS Form 5500 data, and statistics published in the Census Bureau Survey of Public-Employee Retirement Systems.10
In this proposal, we are including property income associated with both defined benefit and defined contribution plans.11 It is debatable whether or not property income associated with defined contribution plans should be reflected in this account at all, since the property income is considered to be owned directly by the household sector. Nevertheless, we thought it would be helpful to the users of these accounts to see the effect of both types of pension plans. Moreover, the financial accounts for this subsector, discussed next, reflect both defined benefit and defined contributions plans.
In the financial accounts, the insurance sector is based on reports filed to insurance authorities. Of note, it does not include most insurance holding companies. For pensions, the financial account also reflects both defined benefit and defined contribution plans.
Looking at Table S.6.2 in the appendix, which shows preliminary estimates for the subsector, we can see that the industry's share of gross value added is approximately 1/3 of that of the total financial sector. Operating surplus (table S.6.2, line 10), which is a profits-like measure that excludes income from interest and dividends, rebounded for the subsector in 2010, and was almost twice 2008 levels. In general, both the financial and capital accounts indicate that this subsector has been a net lender to the economy (chart 7).
5.1.3 Other financial business (including other deposit-taking corporations)
The other financial business subsector is calculated residually as total financial business (as shown in Table S.6.a) less the insurance and pension subsector, and less the Central Bank subsector. This subsector implicitly includes estimates for credit intermediaries, security brokerages, investment pools, other deposit taking corporations, and financial holding companies.
Preliminary estimates show that other financial business accounts for approximately 2/3 of production for the financial sector. Looking at preliminary net lending/net borrowing for the sector (chart 8), financial NLNB is much more volatile than the corresponding measure in the capital account. There has also been a discrepancy between capital and financial accounts since 2008, which can be in part explained by the treatment of charge-offs, as explained in section 4.
5.1.4 Brief observations relating to proposed financial subsector data
In interpreting the financial sector tables, it is important to highlight a few issues in the construction of net worth. As for all other sectors, net worth is the difference between assets and liabilities. However, the market value of the outstanding shares that were issued by the financial sector is recorded as a liability in the accounts. Therefore, declines in stock prices will cause an increase in net worth. As shown in chart 9, the large increases in net worth in 2007 and 2008 can be explained by the large decline in financial stock prices during the crisis, and should obviously not be interpreted as an increase in the value of these companies. In addition, at the moment, our measure of net worth does not include the market value of real estate held by financial companies. As a result, our financial balance sheets do not capture the large declines in commercial real estate during the crisis.
It is also interesting to point out a few facts about net lending/net borrowing of the financial sectors. Usually both the capital account and the financial account indicate that the pension and insurance subsector is a net lender for each year. There is a greater divergence in net lending/net borrowing trends for the other financial business subsector; in this subsector, NLNB for the financial account is much more volatile, with the lending and borrowing amounts much greater than in the capital account. As mentioned in sections above, conceptually the two measures should match, but disparities can arise due to differences in timing, source data, and other statistical differences. This subsector includes a wide variety of institutions with different risk exposures and cyclical behaviors, and different portfolio composition, which could help explain the larger volatility of NLNB in the financial accounts. Separating the various types of institutions within the subsectors will be helpful in understanding the behavior of the series and the discrepancy between financial and capital accounts. A comparison of net lending/net borrowing for the subsectors can be found below in charts 10 and 11.
5.2. Other Future Developments
A current drawback of the IMAs, as pointed out by Palumbo and Parker (2009) and by Eichner, Kohn, and Palumbo (2010), is that the accounts did not show the increased exposure of the financial business sector to house price risk because of the aggregation of the sector and of certain asset classes. As discussed earlier, the sector consolidation masked how leveraged some of the financial subsectors had become. In addition, structured financial products and traditional corporate bonds and commercial paper, which are group together as "debt securities" in the IMA, have very different risk characteristics. To address this drawback, we are examining the feasibility of separating the holdings of structured products from traditional debt instruments.
In addition to presenting additional detail for the financial business sector, we are also investigating the possibility of presenting households separately from nonprofit institutions serving households. These two sectors have notably different characteristics from one another and being able to analyze them separately would be helpful.12 We would also like to incorporate real estate values into the balance sheets for the financial and government sectors. Incorporating conservative estimates may be an improvement over assuming the value is zero.
In addition to these longer term projects, we believe there are a number of useful series and ratios (constructed from currently published IMA statistics) that could be explicitly added to the addenda of the IMAs. For example, in the household and nonprofit institutions serving households sector, the ratio of real estate to disposable income quickly reveals the housing "bubble" that peaked in 2006. Another useful ratio might be the value of corporate equities to disposable income for households and institutions, which peaked in 1999 and then fell rapidly. A useful series that could be added to the household and institutions sector is household net worth from FRB's Survey of Consumer Finances (SCF). A quick comparison showed household net worth measured indirectly in the IMAs tracks very well the mean household net worth measured directly in the SCF - an important validation for both sets of estimates.13 For the financial business sector, including selected estimates from BEA's AIAs might also be useful for comparison purposes. Including these types of related statistics can provide an important validity check and serves to further integrate economic accounts.
The IMA have already proven to be valuable in studying the U.S. economy. The Federal Reserve and BEA will continue to work together to improve the presentation and data availability of these accounts so that in the future policymakers will be better able to see shifts in the financial climate of the U.S. prior to business cycle expansions and contractions.
Bond, Charlotte Anne, Teran Martin, Susan Hume McIntosh, and Charles Ian Mead (2007). "Integrated Macroeconomic Accounts for the United States." Survey of Current Business, Bureau of Economic Analysis, Department of Commerce, February 2007, pp 14-31.
Eichner, Matthew J., Donald L. Kohn, and Michael G. Palumbo (2010). "Financial Statistics for the United States and the Crisis: What Did They Get Right, What Did They Miss, and How Should They Change?" Finance and Economics Discussion Series Paper No. 2010-20, Federal Reserve Board.
Enriques, Alice, and Joanne Hsu, Analysis of Wealth Using Micro and Macro Data: A Comparison of the Survey of Consumer Finances and Flow of Funds Accounts. Presented at the NBER Conference on Research in Income and Wealth, Boston, MA August 2012.
European Commission, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations, and World Bank (2009). System of National Accounts 2008. New York.
McIntosh, Susan Hume and Elizabeth Ball Holmquist (2011). "U.S. Flow of Funds Accounts." Presented at IMF/OECD "Conference on Strengthening Sectoral Position and Flow Data in the Macroeconomic Accounts" in Washington, D.C., February 28, 2011.
Palumbo, Michael G., and Jonathan A. Parker (2009). "The Integrated Financial and Real System of National Accounts for the United States: Does It Presage the Financial Crisis?" American Economic Review 99, no. 2, May, pp. 80-86.
Teplin, Albert M., Rochelle Antoniewicz, Susan Hume McIntosh, Michael G. Palumbo, Genevieve Solomon, Charles Ian Meade, Karin Moses, and Brent Moulton (2006), "Integrated Macroeconomic Accounts for the United States: Draft SNA-USA." In A New Architecture for the U.S. National Accounts, ed. Dale W. Jorgenson, J. Steven Landefeld, and William D. Nordhaus, Chicago: University of Chicago Press, pp 471-540.
Wasshausen, David (2011). "Sectoral Balance Sheets for Nonfinancial Assets." Paper presented at IMF/OECD
"Conference on Strengthening Sectoral Position and Flow Data in the Macroeconomic Accounts" in Washington, D.C., March 2, 2011. http://www.imf.org/external/np/seminars/eng/2011/sta/pdf/usa.pdf
|1||Current account: Gross value added||1.6||1.3||1.9||1.7||1.6||0.9||0.8||0.6||0.2||1|
|2||Current account: Less: Consumption of fixed capital||1.7||1.8||1.9||2.0||2.0||2.1||0.8||0.8||0.8||2|
|3||Current account: Equals: Net value added||-0.1||-0.5||-0.1||-0.3||-0.4||-1.2||0.1||-0.2||-0.6||3|
|4||Compensation of employees (paid)||1.5||1.5||1.5||1.6||1.7||1.8||2.0||2.1||2.1||4|
|5||Wages and salaries||1.3||1.3||1.3||1.4||1.5||1.6||1.7||1.8||1.9||5|
|6||Employers' social contributions||0.2||0.2||0.2||0.2||0.2||0.2||0.2||0.2||0.2||6|
|7||Taxes on production and imports less subsidies||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||7|
|8||Operating surplus net||-1.5||-2.0||-1.6||-1.9||-2.0||-3.0||-1.9||-2.3||-2.7||8|
|9||Current account: Net national income/Balance of primary incomes net||23.6||20.4||20.4||27.1||34.5||37.2||35.9||48.3||72.4||9|
|10||Operating surplus net||-1.5||-2.0||-1.6||-1.9||-2.0||-3.0||-1.9||-2.3||-2.7||10|
|11||Property income (received)||26.8||23.8||23.5||30.7||38.4||42.6||41.1||54.5||79.4||11|
|13||Distributed income of corporations (dividends)||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||13|
|14||Reinvested earnings on U.S. direct investment abroad||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||14|
|15||Less: Uses of property income (paid)||1.7||1.5||1.5||1.8||1.9||2.5||3.3||4.0||4.2||15|
|17||Distributed income of corporations||0.5||0.5||0.6||0.8||0.9||1.0||1.2||1.4||1.6||17|
|19||Withdrawals from income of quasi-corporations (1)||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||19|
|20||Reinvested earnings on foreign direct investment||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||20|
|21||Rents on land and natural resources||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||21|
|22||Current account: Net national income/Balance of primary incomes net||23.6||20.4||20.4||27.1||34.5||37.2||35.9||48.3||72.4||22|
|23||Less: Current taxes on income wealth etc. (paid)||24.5||22.0||18.1||21.5||29.1||34.6||31.7||47.4||79.3||23|
|24||Less: Other current transfers (paid)||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||24|
|25||Current account: Equals: Disposable income net||-0.9||-1.7||2.3||5.6||5.4||2.6||4.2||0.9||-6.9||25|
|26||Current account: Equals: Net saving||-0.9||-1.7||2.3||5.6||5.4||2.6||4.2||0.9||-6.9||26|
|27||Capital account: Net saving less capital transfers||-0.9||-1.7||2.3||5.6||5.4||2.6||4.2||0.9||-7.9||27|
|29||Less: Capital transfers paid (net)||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||1.0||29|
|30||Capital account: Capital formation net||0.7||0.6||1.1||-0.1||0.8||0.8||-0.2||-0.1||-0.1||30|
|31||Gross fixed capital formation (nonresidential)||2.3||2.4||3.1||1.9||2.8||2.9||0.6||0.7||0.7||31|
|32||Less: Consumption of fixed capital||1.7||1.8||1.9||2.0||2.0||2.1||0.8||0.8||0.8||32|
|33||Capital account: Net lending (+) or borrowing (-) capital account (lines 27-30)||-1.6||-2.3||1.2||5.7||4.7||1.8||4.4||0.9||-7.8||33|
|34||Financial account: Net lending (+) or borrowing (-) (line 33)||-1.6||-2.3||1.2||5.7||4.7||1.8||4.4||0.9||-7.8||34|
|35||Financial account: Net acquisition of financial assets||70.7||43.2||44.4||37.4||29.6||43.1||1319.3||-3.4||186.0||35|
|37||Currency and deposits||2.3||0.4||2.5||0.4||0.8||1.3||-0.8||3.7||1.8||37|
|42||Agency- and GSE-backed securities (2)||0.0||0.0||0.0||0.0||0.0||0.0||19.7||1048.5||71.4||42|
|43||Loans (short term)||-10.7||4.3||-10.8||13.8||-6.0||78.3||1564.7||-1434.1||-151.4||43|
|44||Equity and investment fund shares||0.0||0.0||0.0||0.0||0.0||0.0||0.0||25.1||1.3||44|
|45||Other accounts receivable||1.4||1.3||1.5||-3.2||0.1||1.8||0.5||49.6||18.0||45|
|46||Financial account: Net incurrence of liabilities||69.6||42.7||41.7||36.1||27.2||39.9||1316.7||-8.0||185.1||46|
|47||Currency and deposits||47.4||38.0||32.3||33.6||24.8||23.1||1270.2||-3.4||173.9||47|
|48||Loans (short term)||21.1||4.6||5.1||-0.3||-0.9||14.4||44.4||-10.6||-18.0||48|
|49||Equity and investment fund shares||1.0||0.5||3.1||1.6||1.8||3.1||2.6||4.6||0.9||49|
|50||Other accounts payable||0.1||-0.3||1.2||1.1||1.4||-0.7||-0.5||1.5||28.3||50|
|51||Financial account: Net lending (+) or borrowing (-) financial account (lines 35-46)||1.1||0.5||2.8||1.3||2.4||3.1||2.6||4.6||0.9||51|
|52||Other changes in volume account: Total other volume changes||1.9||1.7||-0.3||-4.6||-3.4||0.4||-2.2||3.1||8.9||52|
|53||Other volume changes||-0.8||-1.1||-1.8||-0.2||-1.2||-1.0||-0.4||-0.5||0.2||53|
|54||Less: Statistical discrepancy (line 33-[35-46]) (3)||-2.7||-2.8||-1.5||4.4||2.3||-1.4||1.8||-3.7||-8.7||54|
|55||Revaluation account: Nonfinancial assets||0.0||0.0||1.0||1.0||1.0||0.0||1.0||0.0||0.0||55|
|57||Equipment and software||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||57|
|58||Revaluation account: Changes in net worth due to nominal holding gains/losses||0.0||0.0||1.0||1.0||1.0||0.0||1.0||0.0||0.0||58|
|59||Changes in balance sheet account: Change In net worth (lines 30+33+52+58)||1.0||0.0||3.0||2.0||3.0||3.0||3.0||4.0||1.0||59|
|60||Balance sheet account (end of period): Total assets||762.4||805.5||850.4||888.1||918.2||961.6||2281.3||2277.4||2463.3||60|
|61||Nonfinancial assets (4)||8.7||8.6||9.1||9.4||9.9||10.3||10.6||10.2||10.1||61|
|63||Equipment and softwars||3.5||3.3||3.2||2.9||2.8||2.7||2.6||2.5||2.6||63|
|66||Currency and deposits||51.8||54.9||58.6||56.2||58.2||61.8||61.9||65.7||68.1||66|
|71||Agency- and GSE-backed securities (2)||0.0||0.0||0.0||0.0||0.0||0.0||19.7||1068.3||1139.6||71|
|72||Loans (short term)||39.5||43.8||33.0||46.8||40.8||119.1||1683.8||249.7||98.4||72|
|73||Equity and investment fund shares||0.0||0.0||0.0||0.0||0.0||0.0||0.0||25.1||26.4||73|
|74||Other accounts receivable||19.6||18.2||18.6||18.1||17.0||16.5||16.1||65.6||83.0||74|
|75||Balance sheet account (end of period): Total liabilities and net worth||762.4||805.5||850.4||888.1||918.2||961.6||2281.3||2277.4||2463.3||75|
|77||Currency and deposits||716.0||754.0||786.3||819.9||844.8||867.9||2138.1||2134.6||2308.6||77|
|78||Loans (short term)||21.1||25.7||30.8||30.5||29.6||44.0||88.4||77.7||59.7||78|
|79||Equity and investment fund shares||8.4||8.8||11.9||13.5||15.3||18.5||21.1||25.6||26.5||79|
|80||Other accounts payable||-0.2||-0.6||0.6||1.8||3.2||2.5||2.1||3.6||31.9||80|
|81||Balance sheet account (end of period): Net worth||17.1||17.5||20.7||22.3||25.3||28.7||31.7||35.8||36.6||81|
|1||Current account: Gross value added||271.5||283.8||310.8||317.3||365.6||369.3||355.1||368.9||455.5||1|
|2||Current account: Less: Consumption of fixed capital||17.1||17.9||19.2||20.2||20.8||21.8||31.6||32.4||32.9||2|
|3||Current account: Equals: Net value added||254.3||265.9||291.6||297.0||344.8||347.5||323.5||336.6||422.6||3|
|4||Compensation of employees (paid)||146.9||155.5||164.0||172.9||183.5||188.6||193.1||190.9||195.9||4|
|5||Wages and salaries||120.9||128.9||136.9||142.5||151.9||158.3||160.4||156.5||161.4||5|
|6||Employers' social contributions||26.0||26.6||27.1||30.4||31.6||30.3||32.7||34.4||34.6||6|
|7||Taxes on production and imports less subsidies||16.2||17.6||19.4||20.3||21.8||22.2||20.5||22.6||22.8||7|
|8||Operating surplus net||91.2||92.8||108.2||103.8||139.5||136.7||109.9||123.0||203.9||8|
|9||Current account: Net national income/Balance of primary incomes net||33.7||32.5||51.1||23.5||45.5||43.5||29.1||59.7||57.4||9|
|10||Operating surplus net||91.2||92.8||108.2||103.8||139.5||136.7||109.9||123.0||203.9||10|
|11||Property income (received)||259.4||259.6||283.7||302.2||344.5||384.1||394.6||382.7||302.1||11|
|13||Distributed income of corporations (dividends)||26.9||27.9||34.6||39.0||44.7||50.4||52.9||43.9||39.0||13|
|14||Reinvested earnings on U.S. direct investment abroad||6.5||11.0||13.2||0.9||15.0||14.7||13.5||11.9||16.9||14|
|15||Less: Uses of property income (paid)||316.8||319.9||340.8||382.6||438.5||477.3||475.4||446.0||448.6||15|
|17||Distributed income of corporations||56.3||57.0||59.3||69.1||73.0||79.1||75.3||60.5||61.8||17|
|19||Withdrawals from income of quasi-corporations (1)||17.1||16.4||17.3||18.9||17.7||18.4||17.2||16.1||15.3||19|
|20||Reinvested earnings on foreign direct investment||0.2||1.8||6.5||4.8||7.7||6.4||4.1||1.5||8.8||20|
|21||Rents on land and natural resources||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||21|
|22||Current account: Net national income/Balance of primary incomes net||33.7||32.5||51.1||23.5||45.5||43.5||29.1||59.7||57.4||22|
|23||Less: Current taxes on income wealth etc. (paid)||15.4||28.8||33.8||35.1||48.6||46.4||22.4||31.4||38.2||23|
|24||Less: Other current transfers (paid)||-5.8||-29.1||-25.0||-35.8||-44.2||-13.4||22.5||-4.3||-3.1||24|
|25||Current account: Equals: Disposable income net||24.1||32.8||42.3||24.2||41.1||10.5||-15.8||32.6||22.3||25|
|26||Current account: Equals: Net saving||24.1||32.8||42.3||24.2||41.1||10.5||-15.8||32.6||22.3||26|
|27||Capital account: Net saving less capital transfers||24.1||32.9||31.7||10.8||41.1||10.5||-9.7||40.2||26.9||27|
|29||Less: Capital transfers paid (net)||0.0||-0.1||10.6||13.4||0.0||0.0||-6.1||-7.6||-4.6||29|
|30||Capital account: Capital formation net||0.4||2.5||2.8||-0.1||0.3||1.6||2.7||1.9||1.8||30|
|31||Gross fixed capital formation (nonresidential)||17.5||20.4||22.0||20.1||21.1||23.4||34.3||34.2||34.7||31|
|32||Less: Consumption of fixed capital||17.1||17.9||19.2||20.2||20.8||21.8||31.6||32.4||32.9||32|
|33||Capital account: Net lending (+) or borrowing (-) capital account (lines 27-30)||23.7||30.5||28.9||11.0||40.8||9.0||-12.5||38.3||25.1||33|
|34||Financial account: Net lending (+) or borrowing (-) (line 33)||23.7||30.5||28.9||11.0||40.8||9.0||-12.5||38.3||25.1||34|
|35||Financial account: Net acquisition of financial assets||487.0||500.7||495.4||393.3||438.9||363.8||251.3||265.9||279.0||35|
|36||Currency and deposits||9.1||24.0||-4.4||-4.3||15.3||25.0||10.2||-23.5||10.1||36|
|40||Agency- and GSE-backed securities (2)||90.5||103.8||39.9||33.6||79.0||61.1||-0.5||-71.3||-28.9||40|
|42||Corporate and foreign bonds||58.5||202.2||170.5||128.8||127.0||102.4||-2.5||167.0||128.5||42|
|43||Nonmarketable government securities||24.5||24.7||40.9||40.0||35.8||33.3||63.3||61.9||65.7||43|
|47||Equity and investment fund shares||213.7||97.7||196.1||83.8||42.2||37.7||-5.4||-55.5||17.9||47|
|49||Mutual fund shares||99.5||3.0||99.0||54.9||98.8||113.6||23.3||87.3||78.1||49|
|50||Money market mutual fund shares||16.9||-2.9||2.4||-2.4||16.0||7.5||33.9||-8.1||-17.1||50|
|51||Equity in government -sponsored enterprises (2)||0.2||0.7||0.6||-0.1||0.0||0.6||1.0||-0.3||0.0||51|
|52||U.S. direct investment abroad||14.1||4.4||10.9||12.2||3.9||23.4||11.5||18.8||3.4||52|
|53||Insurance pension and standardized guarantee schemes||14.6||-17.3||-36.8||-2.3||-3.0||31.7||42.0||7.7||-3.0||53|
|54||Other accounts receivable||-6.5||24.3||27.5||15.9||50.6||16.7||2.2||-13.5||-28.5||54|
|55||Financial account: Net incurrence of liabilities||435.0||442.8||424.0||353.9||395.0||290.5||241.4||141.3||275.1||55|
|56||Loans (short term)||13.9||4.9||0.9||8.0||2.9||12.8||20.8||-8.8||-4.6||56|
|57||Equity and investment fund shares||15.1||1.8||-2.8||-0.9||11.7||-32.5||4.6||17.7||13.8||57|
|58||Corporate equity issues||-0.3||0.2||-21.3||-10.8||-28.5||-43.9||-10.3||-6.2||-17.5||58|
|59||Foreign direct investment in the United States||11.4||-2.2||16.0||0.2||37.5||6.1||27.4||14.6||9.1||59|
|60||Investment by parent||4.0||3.8||2.5||9.7||2.7||5.3||-12.5||9.3||22.2||60|
|61||Insurance pension and standardized guarantee schemes||399.8||405.5||414.0||351.0||345.0||294.6||272.8||174.3||242.0||61|
|62||Other accounts payable||6.2||30.6||12.0||-4.3||35.5||15.6||-56.8||-41.8||23.9||62|
|63||Financial account: Net lending (+) or borrowing (-) financial account (lines 35-55)||52.0||57.9||71.4||39.4||43.9||73.2||9.9||124.5||3.8||63|
|64||Other changes in volume account: Total other volume changes||57.9||8.1||36.6||5.7||-54.0||63.2||97.0||51.0||-30.3||64|
|66||Other volume changes||29.6||-19.4||-6.1||-23.1||-57.1||-1.2||74.5||-35.3||-9.1||66|
|67||Less: Statistical discrepancy (line 33-[35-55]) (3)||-28.3||-27.4||-42.5||-28.4||-3.1||-64.3||-22.4||-86.3||21.2||67|
|68||Revaluation account: Nonfinancial assets||0.8||1.5||67.7||-55.1||13.8||8.3||13.4||-9.5||-1.7||68|
|70||Equipment and software||-0.9||-0.7||0.2||0.1||1.3||-0.6||1.1||-1.4||-1.4||70|
|71||Revaluation account: Financial assets||-873.7||1305.4||611.4||586.7||1101.4||426.4||-3327.3||1408.1||1033.2||71|
|73||Mutual fund shares||-159.1||249.0||104.0||259.8||276.2||165.0||-953.1||430.2||275.2||73|
|74||U.S. direct investment abroad||19.3||3.4||-3.4||3.6||-0.8||-2.2||-30.6||9.7||15.8||74|
|75||Revaluation account: Liabilities||-916.8||1394.0||617.4||576.1||1187.2||214.3||-3555.6||1440.8||1024.1||75|
|76||Corporate equity issues||-63.7||157.8||61.5||29.6||139.8||-192.8||-386.4||49.4||42.5||76|
|77||Foreign direct investment in the United States||-3.6||4.1||-2.8||-2.3||7.8||-32.0||-61.3||20.6||14.4||77|
|78||Pension fund reserves||-849.5||1232.0||558.7||548.9||1039.6||439.1||-3107.9||1370.7||967.2||78|
|79||Investment by parent||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||79|
|80||Revaluation account: Changes in net worth due to nominal holding gains/losses||44.0||-87.0||61.7||-44.5||-72.1||220.3||241.7||-42.2||7.4||80|
|81||Changes in balance sheet account: Change In net worth (lines 30+33+64+80)||126.0||-46.0||130.0||-28.0||-85.0||294.0||329.0||49.0||4.0||81|
|82||Balance sheet account (end of period): Total assets||10967.8||12867.0||14100.3||15013.0||16585.2||17406.2||14200.6||15951.2||17311.5||82|
|83||Nonfinancial assets (4)||198.5||207.5||287.6||234.5||250.5||264.1||281.1||273.8||273.9||83|
|85||Equipment and softwars||73.8||80.2||86.4||88.0||90.6||93.0||97.7||97.8||99.4||85|
|87||Currency and deposits||143.5||167.5||163.2||158.9||174.1||199.1||209.4||185.9||196.0||87|
|91||Agency- and GSE-backed securities (2)||824.2||928.0||967.9||1001.5||1080.5||1141.6||1141.1||1069.8||1040.8||91|
|93||Corporate and foreign bonds||2113.1||2315.3||2485.8||2608.4||2700.5||2802.9||2800.5||2980.0||3108.5||93|
|94||Nonmarketable government securities||790.3||815.0||855.9||882.9||918.7||952.0||1015.3||1077.2||1142.9||94|
|98||Equity and investment fund shares||4947.6||6350.7||7158.1||7828.6||8972.2||9436.2||6103.5||7456.1||8507.2||98|
|100||Mutual fund shares||1178.8||1430.8||1633.8||1948.5||2323.6||2602.2||1672.5||2190.0||2543.3||100|
|101||Money market fund shares||127.6||124.7||127.1||124.7||140.7||148.2||182.0||173.9||156.8||101|
|102||Equity in government-sponsored enterprises (2)||0.5||1.1||1.7||1.6||1.6||2.2||3.2||2.9||2.9||102|
|103||U.S. direct investment abroad||91.2||99.0||106.5||122.3||125.4||146.7||127.6||156.0||175.2||103|
|104||Insurance pension and standardized guarantee schemes||319.5||387.7||397.6||405.5||453.6||502.4||392.5||485.4||531.4||104|
|105||Other accounts receivable||352.7||375.7||402.8||413.5||464.0||480.9||488.3||473.7||444.2||105|
|106||Balance sheet account (end of period): Total liabilities and net worth||10967.8||12867.0||14100.3||15013.0||16585.2||17406.2||14200.6||15951.2||17311.5||106|
|109||Equity and investment fund shares||790.3||954.1||1010.0||1036.4||1195.7||938.4||495.4||583.1||653.9||109|
|110||Corporate equity issues||657.8||815.8||856.1||874.8||986.1||749.4||352.7||396.0||420.9||110|
|111||Foreign direct investment in the United States||112.9||114.8||128.0||125.9||171.2||145.3||111.4||146.7||170.2||111|
|112||Investment by parent||19.6||23.4||25.9||35.6||38.3||43.7||31.2||40.5||62.7||112|
|113||Insurance pension and standardized guarantee schemes||10058.7||11807.1||12840.5||13754.8||15205.9||15960.3||12884.5||14550.4||15827.6||113|
|114||Other accounts payable||126.8||155.3||168.1||160.0||204.4||221.6||185.4||142.6||155.4||114|
|115||Balance sheet account (end of period): Net worth||-28.1||-74.3||55.9||28.0||-57.4||236.4||565.1||613.8||617.8||115|
|1||Current account: Gross value added||610.1||637.2||651.8||766.9||822.2||748.5||675.1||750.2||917.3||1|
|2||Less: Consumption of fixed capital||88.6||93.3||99.3||105.1||110.0||116.7||140.3||143.8||145.4||2|
|3||Equals: Net value added||521.5||543.9||552.5||661.8||712.2||631.7||534.7||606.4||771.9||3|
|4||Compensation of employees (paid)||298.9||310.4||331.9||367.3||399.3||419.9||415.3||375.0||386.7||4|
|5||Wages and salaries||248.9||263.4||281.8||310.6||339.0||361.2||351.1||312.8||323.9||5|
|6||Employers' social contributions||50.1||46.9||50.1||56.7||60.2||58.7||64.2||62.1||62.8||6|
|7||Taxes on production and imports less subsidies||21.4||22.3||24.0||25.8||28.7||31.2||30.7||32.1||32.3||7|
|8||Operating surplus net||201.3||211.3||196.7||268.6||284.4||180.7||88.7||199.4||352.9||8|
|9||Current account: Net national income/Balance of primary incomes net||155.4||178.9||180.5||221.1||194.5||119.9||-22.7||152.0||185.0||9|
|10||Operating surplus net||201.3||211.3||196.7||268.6||284.4||180.7||88.7||199.4||352.9||10|
|11||Property income (received)||925.6||825.2||1030.9||1378.5||1872.2||2306.0||1922.5||1241.2||1041.3||11|
|13||Distributed income of corporations (dividends)||42.7||49.4||67.4||99.3||111.3||150.8||156.2||121.1||126.8||13|
|14||Reinvested earnings on U.S. direct investment abroad||7.6||9.9||16.9||2.1||26.6||32.9||35.8||39.8||49.1||14|
|15||Less: Uses of property income (paid)||971.4||857.6||1047.0||1426.1||1962.0||2366.7||2033.8||1288.6||1209.1||15|
|17||Distributed income of corporations||164.1||170.4||219.8||252.1||307.9||345.3||299.9||326.3||376.0||17|
|19||Withdrawals from income of quasi-corporations (1)||37.8||34.8||36.8||39.1||52.2||40.6||17.9||39.8||41.7||19|
|20||Reinvested earnings on foreign direct investment||0.1||0.7||2.8||3.2||5.2||3.7||3.0||0.9||7.4||20|
|21||Rents on land and natural resources||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||0.0||21|
|22||Current account: Net national income/Balance of primary incomes net||155.4||178.9||180.5||221.1||194.5||119.9||-22.7||152.0||185.0||22|
|23||Less: Current taxes on income wealth etc. (paid)||55.3||60.1||67.2||84.0||87.9||70.7||27.5||18.6||64.3||23|
|24||Less: Other current transfers (paid)||13.9||15.9||15.5||19.2||18.2||18.0||23.1||23.0||18.1||24|
|25||Equals: Disposable income net||86.2||102.9||97.8||117.9||88.4||31.2||-73.3||110.4||102.6||25|
|26||Equals: Net saving||86.2||102.9||97.8||117.9||88.4||31.2||-73.3||110.4||102.6||26|
|27||Capital account: Net saving less capital transfers||86.2||102.8||92.2||103.6||88.4||31.2||-18.9||224.8||140.5||27|
|29||Less: Capital transfers paid (net)||0.0||0.1||5.6||14.3||0.0||0.0||-54.4||-114.3||-37.9||29|
|30||Capital account: Capital formation net||27.9||19.3||30.7||28.2||28.9||44.5||19.8||-10.6||0.9||30|
|31||Gross fixed capital formation (nonresidential)||116.6||112.6||130.0||133.3||138.9||161.3||160.1||133.2||146.3||31|
|32||Less: Consumption of fixed capital||88.6||93.3||99.3||105.1||110.0||116.7||140.3||143.8||145.4||32|
|33||Capital account: Net lending (+) or borrowing (-) capital account (lines 27-30)||58.3||83.5||61.5||75.4||59.5||-13.3||-38.7||235.3||139.6||33|
|34||Financial account: Net lending (+) or borrowing (-) (line 33)||58.2||83.5||61.6||75.3||59.4||-13.3||-38.7||235.3||139.6||34|
|35||Financial account: Net acquisition of financial assets||1743.2||2236.4||2426.2||2880.6||3659.7||4398.0||3035.9||-1854.8||-1143.9||35|
|36||Currency and deposits||-22.8||-66.7||35.8||-1.1||44.5||143.1||1008.1||255.9||-153.1||36|
|40||Agency- and GSE-backed securities (2)||448.8||315.9||-208.7||-222.7||56.9||240.5||839.7||-373.5||40.6||40|
|42||Corporate and foreign bonds||142.7||365.5||352.9||278.4||372.8||481.9||9.6||43.5||92.7||42|
|46||Equity and investment fund shares||171.7||244.0||467.1||428.5||476.0||961.0||613.9||-23.3||-60.0||46|
|48||Mutual fund shares||1.5||-5.6||-1.9||-2.7||3.8||3.6||1.4||14.1||-5.7||48|
|49||Money market mutual fund shares||-30.9||-64.5||-107.0||37.8||44.9||326.3||270.0||-162.8||-141.0||49|
|50||Equity in government -sponsored enterprises (2)||1.7||1.8||1.8||2.1||0.0||7.7||-6.3||0.3||-3.2||50|
|51||U.S. direct investment abroad||9.3||19.9||32.9||-0.7||21.9||83.6||54.9||5.0||25.9||51|
|52||Stock in Federal Reserve Banks||1.0||0.5||3.1||1.6||1.8||3.1||2.6||4.6||0.9||52|
|53||Investment in subsidiaries||102.2||126.4||291.9||173.2||202.8||263.1||225.0||-64.1||-44.2||53|
|54||Insurance pension and standardized guarantee schemes||0.0||0.0||0.0||0.0||7.9||16.2||5.3||2.9||8.2||54|
|55||Other accounts receivable||99.6||325.0||242.9||223.6||349.0||125.0||-166.0||31.8||-251.3||55|
|56||Financial account: Net incurrence of liabilities||1767.6||2076.5||2484.8||2614.7||3443.1||4366.3||3315.2||-1771.2||-930.0||56|
|57||Currency and deposits||335.8||427.7||580.2||584.1||591.4||513.4||938.9||243.5||129.1||57|
|59||Agency- and GSE-backed securities (2)||546.7||586.2||115.8||80.4||328.2||905.7||768.7||-60.1||-46.9||59|
|65||Equity and investment fund shares||342.8||253.9||651.4||699.2||919.7||1483.6||1749.2||236.1||84.5||65|
|66||Money market mutual fund shares||-16.7||-207.5||-136.5||127.0||305.3||720.9||724.2||-499.0||-502.9||66|
|67||Corporate equity issues||71.8||65.9||139.6||89.3||88.0||222.5||647.9||320.5||208.3||67|
|68||Mutual fund shares||181.1||288.6||298.2||260.2||336.8||364.7||31.0||490.5||389.3||68|
|69||Equity in government -sponsored enterprises (2)||2.0||3.2||2.5||1.9||0.2||9.1||-4.2||0.0||-2.7||69|
|70||Foreign direct investment in the United States||-1.8||26.1||34.2||13.7||14.5||3.2||93.3||31.5||41.0||70|
|71||Equity in noncorporate business||0.6||-3.4||-4.2||-1.2||-6.8||2.4||11.5||-3.6||0.4||71|
|72||Investment by parent||105.7||81.1||317.6||208.4||181.7||160.8||245.5||-103.8||-48.8||72|
|73||Other accounts payable||172.7||23.8||142.1||-124.8||46.0||308.7||399.5||-110.6||12.8||73|
|74||Net lending (+) or borrowing (-) financial account (lines 35-56)||-24.4||159.9||-58.6||265.9||216.7||31.9||-279.3||-83.5||-213.8||74|
|75||Other changes in volume account: Total other volume changes||16.7||2.6||-97.2||153.4||89.9||-158.1||-441.1||409.5||-331.9||75|
|77||Other volume changes||99.3||-73.8||21.4||-38.6||-67.4||-203.1||-201.0||728.5||21.6||77|
|78||Less: Statistical discrepancy (line 33-[35-56]) (3)||82.7||-76.3||120.1||-190.6||-157.3||-45.0||240.5||319.0||353.5||78|
|79||Revaluation account: Nonfinancial assets||32.0||38.5||19.7||156.0||84.1||49.0||50.4||-44.3||-2.5||79|
|81||Equipment and software||10.3||19.6||18.7||18.7||23.0||12.1||4.5||-2.0||-4.1||81|
|82||Revaluation account: Financial assets||-729.9||840.1||590.7||417.5||830.4||505.2||-2842.7||1237.4||747.1||82|
|84||Mutual fund shares||-3.5||3.6||2.0||1.0||3.3||1.3||-11.3||11.7||4.7||84|
|85||U.S. direct investment abroad||9.1||26.6||54.0||27.1||36.5||48.0||41.4||2.6||25.7||85|
|86||Revaluation account: Liabilities||-994.6||1380.7||890.3||627.8||1312.3||-424.6||-4512.6||2113.3||1060.6||86|
|87||Corporate equity issues||-303.2||638.1||397.3||232.7||576.8||-791.6||-1978.0||394.0||474.7||87|
|88||Mutual fund shares||-678.1||727.2||483.8||352.4||682.6||396.0||-2424.7||1035.8||583.7||88|
|89||Foreign direct investment in the United States||-11.5||4.3||6.8||11.7||14.7||-24.7||-96.3||1.8||3.0||89|
|90||Equity in noncorporate business||-1.9||11.4||2.4||1.7||4.9||-0.6||-13.6||6.3||1.3||90|
|91||Investment by parent||0.0||-0.1||0.0||29.0||33.2||-3.7||0.0||675.6||-2.0||91|
|92||Revaluation account: Changes in net worth due to nominal holding gains/losses||296.6||-502.2||-280.0||-54.3||-397.6||978.9||1720.3||-920.2||-316.0||92|
|93||Changes in balance sheet account: Change In net worth (lines 30+33+75+92)||399.4||-396.8||-284.9||202.7||-219.4||852.1||1260.2||-285.9||-507.4||93|
|94||Balance sheet account (end of period): Total assets||28332.4||31213.0||34160.5||37473.1||41997.1||46955.2||47526.7||47429.6||46498.3||94|
|95||Nonfinancial assets (4)||940.7||978.0||1000.2||1160.5||1250.6||1317.3||1386.5||1331.7||1330.1||95|
|97||Equipment and softwars||403.4||425.1||451.6||474.5||503.6||528.8||543.6||530.4||533.6||97|
|99||Currency and deposits||588.2||521.5||557.2||556.2||600.9||744.1||1787.0||2057.4||1904.3||99|
|101||Commercial market paper||799.8||664.9||715.5||908.2||1124.7||1029.1||1062.9||679.7||573.6||101|
|103||Agency- and GSE-backed securities (2)||3488.2||3639.6||3450.9||3228.2||3283.2||3523.7||4363.4||4044.3||3622.3||103|
|105||Corporate and foreign bonds||1821.8||2265.3||2618.2||2896.5||3268.6||3750.5||3760.1||3759.2||3830.4||105|
|109||Equity and investment fund shares||4576.4||5660.5||6718.4||7564.5||8904.0||10370.3||8141.5||10031.8||10718.8||109|
|111||Mutual fund shares||23.1||21.2||21.3||19.6||26.6||31.6||21.6||47.4||46.5||111|
|112||Money market fund shares||552.6||488.1||381.1||418.9||463.9||790.2||1060.3||897.5||756.5||112|
|113||Equity in government-sponsored enterprises (2)||34.7||36.6||38.4||40.4||40.4||48.1||41.8||42.1||38.8||113|
|114||U.S. direct investment abroad||163.9||210.4||297.3||323.7||382.0||513.5||609.8||617.5||669.1||114|
|115||Stock in Federal Reserve Banks||8.4||8.8||11.9||13.5||15.3||18.5||21.1||25.6||26.5||115|
|116||Investment in subsidiaries||1369.0||1495.4||1787.3||1960.6||2196.5||2459.6||2684.6||3296.6||3252.4||116|
|117||Insurance pension and standardized guarantee schemes||0.0||0.0||0.0||0.0||108.5||124.7||130.0||132.8||141.1||117|
|118||Other accounts receivable||1921.2||2131.4||2247.8||2325.7||2513.9||2637.3||2746.3||2612.4||2277.2||118|
|119||Balance sheet account (end of period): Total liabilities and net worth||28332.4||31213.0||34160.5||37473.1||41997.1||46955.2||47526.7||47429.6||46498.3||119|
|121||Currency and deposits||5657.9||6085.1||6690.8||7275.5||7867.5||8380.3||9282.8||9519.9||9645.5||121|
|123||Agency- and GSE-backed securities (2)||5509.0||5944.5||6060.3||6140.7||6468.9||7374.6||8143.4||8083.3||7574.0||123|
|129||Equity and investment fund shares||9610.0||11244.7||12786.5||14113.3||16345.3||17404.2||14640.7||16990.4||18135.4||129|
|130||Money market fund shares||2223.9||2016.4||1879.8||2006.9||2312.1||3033.1||3757.3||3258.3||2755.3||130|
|131||Corporate equity issues||2194.2||2898.1||3435.0||3757.1||4421.9||3852.8||2522.7||3237.2||3920.2||131|
|132||Mutual fund shares||3638.4||4654.2||5436.3||6048.9||7068.3||7829.0||5435.3||6961.6||7934.5||132|
|133||Equity in government-sponsored enterprises (2)||39.1||42.3||44.8||46.7||46.9||56.0||51.8||51.8||49.0||133|
|134||Foreign direct investment in the United States||130.6||160.9||201.9||227.3||256.6||235.1||232.1||265.2||309.3||134|
|135||Equity in noncorporate business||5.0||13.0||11.2||11.7||9.8||11.6||9.5||12.1||13.8||135|
|136||Investment by parent||1379.0||1460.0||1777.5||2014.8||2229.8||2386.8||2632.3||3204.0||3153.2||136|
|137||Other accounts payable||1710.6||1719.9||1679.3||1475.6||1526.3||1870.6||2815.0||2100.2||2093.6||137|
|138||Balance sheet account (end of period): Net worth||-351.7||-748.7||-1034.0||-831.0||-1050.0||-198.2||1062.4||776.7||269.5||138|
Data from Appendix B can be found on the Federal Reserve Board website.