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General or a Deputy Attorney General responsible for either criminal justice services or the criminal justice system. In order for such a Bureau to be successful, however, adequate resources will have to be provided. No simple transfer of personnel from existing activities to the new Bureau would be sufficient to perform the activities required. Even after adequate human resources are provided the Department of Justice will also have to provide support by requiring the various agencies within the Department to provide needed administrative data to the new Bureau in order to develop an effective Federal level justice statistics program.

The Bureau should immediately incorporate the statistical activities of various agencies within the Department of Justice, for example, the crime statistics of the FBI and LEAA. The perception of the crime problem and the resulting official response is warped by the separate publication of data on crimes known to the police (UCR) and crime reported by victims in a survey (Crime Panel). Separate publication should be discontinued and a joint publication developed by the central bureau. Such a joint publication should place the disparate estimates from these two sources in the proper perspective.

Steps To Be Taken

A Bureau of Justice Statistics could be developed using either the authority of the Reorganization Act

or by requesting specific legislation. One avenue could be the reauthorization of the LEAA. However, if this route is selected no final action would occur for well over a year. In the meantime the Justice Department should establish the nucleus of the Bureau of Justice Statistics. This activity could be temporarily located within the Office for the Improvement of Criminal Justice. There is also no reason to delay the initiation of an effort to develop standards for the publication of statistics within the Department.

Summary of Recommendations

1. Statistical methods for estimating the local incidence and prevalence of crime should be developed.

2. LEAA should continue to expand ways to use State produced data rather than data collected nationally for administrative statistics.

3. Methods should be developed to assess white collar and victimless crime.

4. A Federal Bureau of Justice Statistics should be established within the Justice Department.

5. A Federal Offender Based Transaction Statistics program should be established.

6. Methods should be developed to generate comprehensive information on courts.

Chapter 4. ECONOMIC ACCOUNTS-NATIONAL, REGIONAL, AND INTERNATIONAL

Core Program

The functions of the Bureau of Economic Analysis (BEA) in the Department of Commerce are to prepare the economic accounts of the United States and to interpret economic developments in the light of these accounts and other information.

The accounts provide a quantitative view of the economic process in terms of the production, distribution, and use of the Nation's output. This picture is disciplined-it appears in the framework of an interrelated system of credits and debits-and realistic, in the sense that it focuses on the institutions and transactions that determine the working of the economy. The accounts are as follows:

The national income and product accounts, focusing on the gross national product (GNP), provide a bird's-eye view of the economic process. The wealth accounts show the business and other components of tangible national wealth.

The balance of payments accounts give detail on U.S. transactions with foreign countries.

The interindustry accounts show how the Nation's industries interact to produce GNP.

The regional accounts provide detail on economic activity by region, State, metropolitan area, and county.

The accounts are supplemented by various tools for forecasting economic developments:

Surveys of the investment outlays and programs of U.S. business,

Econometric models of the United States, and

A system of leading, lagging, and coincident business cycle indicators.

Most of BEA's work is published in its monthly magazine, Survey of Current Business. Other BEA publications are: Business Statistics a biennial supplement to the Survey; Business Conditions Digest, a monthly compendium of economic indicators; and Long Term Economic Growth, a periodic supplement

containing historical series pertinent to the study of economic growth. BEA Staff Papers report on BEA research that is more specialized or less wellestablished than that published in the Survey. For use within the Government, BEA prepares analyses bearing on the formulation of fiscal, monetary, and other economic policies.

The economic accounts are among the most important and widely used statistical outputs of the Federal Government. The accounts are used primarily in analyzing the current economic situation and in testing the economic relationships for projecting future economic activity and the economic impact of alternative Federal policies.

Major users include Federal policymakers such as the Council of Economic Advisers, Federal Reserve Board, Treasury Department, Council on Wage and Price Stability, Office of Management and Budget, and Department of Commerce, who use the national economic accounts to monitor the stability and growth patterns of the economy as a basis for fiscal, monetary, and wage-price policymaking. The Economics, Statistics, and Cooperatives Service in the Department of Agriculture uses the accounts in preparing projections of the demand for food and fibers. The Office of Policy Development and Research within the Department of Housing and Urban Development uses the accounts in analyzing and projecting the effect of the economy and Government policies on the housing market. The Department of the Interior's Bureau of Mines uses the accounts in preparing projections of the demand for mineral base materials. Within the Department of Labor the data are used in analyzing and projecting changes in the employment level, composition of the labor force and prices. The estimates of real gross national product originating in private or individual sectors are an input for the Bureau of Labor Statistics (BLS) series on output per hour (productivity) and the accounts serve as the framework for the BLS medium and long-term projections of U.S. economic growth. The Office of Management and Budget uses the accounts to analyze the effect of economic assumptions on Federal tax receipts, expenditures for transfer payments, etc., needed to derive the

President's budget estimates. The Federal budget includes a table which shows the budget as a percentage of GNP and a special analysis which presents Federal expenditures and receipts in terms of the national accounts. Similar data are published in the Economic Report of the President.

Within the Congress the accounts are used by the Joint Economic, Ways and Means, Finance and Budget Committees and the Congressional Budget Office in evaluating economic performance and in analyzing the probable economic impact of alternative budget levels and proposed legislation.

The data are also used by State and local governments, the business community, professional and labor organizations, academicians, and organizations primarily engaged in economic research.

National Income and Product and Wealth Accounts These accounts include the following elements: 1. Monthly personal income.-Personal income is the most comprehensive monthly indicator of economic activity and consumer purchasing power currently available. The estimates are prepared in considerable detail by type of income (wages and salaries, dividends, proprietors' income, etc.).

2. GNP estimates.-These estimates show GNP by type of expenditure, type of product, and sector, in current and constant dollars; gross domestic product in current and constant dollars; net national product by sector in current and constant dollars; implicit price deflators and alternative price measures for GNP and its components; personal consumption expenditures by major type in current and constant dollars; national income by type of income and industry division; corporate gross product in current and constant dollars; gross auto product in current and constant dollars; corporate profits by broad industry group, and corporate income taxes, dividends, and retained earnings; personal income and its disposition; the relationship between GNP, national income, and personal income; government receipts and expenditures; foreign transactions; and gross saving and investment.

Provisional summary measures are prepared quarterly to provide this information on a timely basis-initially 15 days after the quarter and then in successive revisions 45 days and 75 days after the quarter. Much more detail is published annually because of the more complete and reliable underlying data, at which time the

earlier estimates are also revised. Comprehensive GNP benchmark revisions are prepared for the quinquennial years of the economic censuses. The revisions reflect both conceptual changes to the accounts and improvements in the source data. They are made mainly for the period since the preceding benchmark, although where appropriate they are carried back to earlier years to maintain a consistent time series.

3. Government budgets in the GNP framework.The Federal, State and local budgets prepared within the GNP framework provide a means of gauging the effect of government fiscal policies on the economy. Detailed reconciliations between this concept of the Federal budget and the budget prepared by OMB are published twice a year, once on a fiscal year basis including the projection for current and coming years in the President's budget, and the other as an historical quarterly series. Also, an analysis of the impact of the Federal budget on the economy is published annually.

4. GNP by industry.-Annual estimates of GNP by industry in current and constant dollars, and implicit price deflators are published annually.

5. Fixed business capital.-Estimates of the nonresidential fixed business capital of the United States are made annually. These cover gross and net capital stocks, depreciation, discards, and average ages of net and gross capital stocks. The estimates are provided by legal form of organization in historical-cost, constant-cost, and current-cost valuations, by type of structure and equipment, for farm, manufacturing, and for all other industries combined.

Estimates of the value of the Nation's stock of housing are made annually. These estimates show, in historical-cost, constant-cost, and current-cost valuations, the value of the farm and nonfarm housing stock, by type of structure-one- to four-dwelling unit structures, structures containing five or more dwelling units, mobile home, and owner and tenant-occupied dwelling units.

6. Business sales and inventories.-Estimates of final sales and inventories of business, in current and constant dollars, and inventory-sales ratios are published quarterly. Estimates of manufacturing and trade firms' sales and inventories, in constant dollars, and inventorysales ratios are also published quarterly.

7. Size distribution of personal income.

Estimates of the size distribution of the personal income component of the GNP statistics are published for selected years and are being developed to be provided as an annual series.

Estimates of the national income and product accounts are based on data primarily collected by Federal agencies such as the Bureau of the Census, Bureau of Labor Statistics, Federal Trade Commission, Internal Revenue Service, Treasury Department, Office of Management and Budget, and BEA itself. Data for the agricultural sector (with the main exception of the census of agriculture) are collected and processed into the farm income estimates by the Economics, Statistics, and Cooperatives Service of the Department of Agriculture. A limited amount of data provided by private organizations such as the Motor Vehicles Manufacturers' Association and the American Telephone and Telegraph Company is also used.

Interindustry Accounts

The accounts include the following elements: 1. Input-output tables.-Input-output tables depict how the industries of the Nation interact in producing GNP. They show, for each industry, the amount of its output that goes to each other industry as raw materials or semifinished products, as well as the amount that goes to the final markets-consumers, business investors, government, and foreigners. They also show for each industry its consumption of the output of every industry, and its value added (the sum of compensation of employees, profits, proprietors' income, capital consumption allowance, etc.).

Comprehensive benchmark input-output tables are prepared approximately every 5 years for the same years as the quinquennial economic censuses. A relatively new program is summary annual input-output tables prepared in less industrial detail to update the benchmark tables.

The estimates are based primarily on data collected in the economic censuses conducted by the Census Bureau. The Bureau of Mines in the Department of the Interior and the Economics, Statistics and Cooperatives Service of the Department of Agriculture assist in preparing the input-output relationships in the mining and agricultural sectors, respectively.

2. Capital flow tables.-Tables showing flows from producing to using industries are prepared

for the same year as the benchmark inputoutput tables.

Regional Economic Accounts

This work consists of estimates, analysis and projections of personal income, population and employment by region, State, metropolitan area and county.

Estimates are prepared of total personal income, with total income subdivided by type of income and by major industry of origin, at the State level, for more than 3,100 U.S. counties and county equivalents, and for each standard metropolitan statistical area (SMSA). Estimates of personal income by State are published quarterly and annually. The county and SMSA estimates are published annually and, in addition, estimates of per capita personal income are provided.

The estimates of personal income by county are the basic source data for the annual estimates of State and county money income prepared by BEA for the Census Bureau's intercensal demographic estimates required for the general revenue sharing program.

Analyses are carried out to identify and measure the factors that determine area differences in levels and growth rates of total personal and per capita income and of industrially detailed earnings and employment. These analyses are needed to improve the techniques for preparing the State and local area economic projections, and to assess, in advance of adoption, the area effects of alternative development programs.

Economic projections, primarily of personal income, employment, earnings of persons (by industry), and population are prepared every 5 years for each State and for more than 900 geographic areas which cover the United States. During the interim period, economic projections are made for selected State and local areas.

International Economic Accounts

The outputs of this activity include balance of payments accounts, which give detail on U.S. transactions with foreign countries; and the international investment estimates, which measure the international investment position of the United States. For the most part estimates are published quarterly and/or annually. They include:

1. Balance of payments. accounts.-This work consists of the preparation, development, and analysis of accounts, which provide a comprehensive and systematic view of economic

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