| BUSINESSWEEK ONLINE : SEPTEMBER 20, 1999 ISSUE | ||||||||
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| NEWS: ANALYSIS & COMMENTARY
How the Numbers Will Change SOFTWARE For years, the Bureau of Economic Analysis has undercounted the value of software by treating it as a raw material to be used in the production of other goods and services. Now, it will treat software as a business investment, which will add to the GDP. PRODUCTIVITY Economists have long suspected that the way the government measures productivity in the service sector does not truly reflect improvements there. Now, the BEA will try to account for labor-saving innovations such as ATMs and electronic transfers in banking. SAVINGS In a move that could result in a higher estimate of the U.S. personal-savings rate--now in negative territory--the BEA will start to treat government pensions like private ones and count them in household savings. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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RELATED ITEMS The Fed's Lone Star Loner (extended) New Math for the New Economy TABLE: How the Numbers Will Change INTERACT E-Mail to Business Week Online | |||
