March Monthly Luncheon
Thursday, March 20, 2008
Carol A. Robbins
Bureau of Economic Analysis, Department of Commerce
"How Should We Treat R & D Expenditures in National Accounts? New
Thinking from the BEA"
In the U.S. national accounts, research and development expenditures (R
& D) are treated as expense for business and as consumption for
government and non-profits. As part of its work to improve the
measurement of intangibles in the economy, the Commerce Department's
Bureau of Economic Analysis is developing supplementary estimates known as satellite accounts. Satellite accounts show the impact that
capitalized R & D expenditures would have on the various aggregates of
the U.S. national accounts. The presentation touches upon measurement
issues and provides tentative estimates of impact on saving and
investment for 13 sectors of the economy.