The Bureau of Labor Statistics (BLS) has published updated multifactor productivity (MFP) measures (see Multifactor Productivity Trends, 2003 and 2004, News Release USDL 06-513). These new measures reflect a shift to the 1997 North American Industry Classification System (NAICS) and incorporate the most current data and definitions used in calculating capital inputs. These capital input data are fixed assets published and maintained by the Bureau of Economic Analysis (BEA) of the Department of Commerce for the national income and product accounts (NIPA). BEA defines fixed assets as assets derived as output from a production process that are used repeatedlyor continuouslyin production processes for more than a year. They consist of equipment and software and structures but exclude consumer durables (U.S. Department of Commerce, 2003).
This document describes the procedures that BLS uses to estimate capital inputs and the impact of BEA revisions on the estimation of these capital inputs. The most significant of the BEA revisions has been the introduction of the 2003 Comprehensive Revision of the National Income and Product Accounts. The BLS procedures for estimating capital inputs have always been closely tied to the BEA estimates of fixed assets. BLS has accordingly adjusted some of its procedures for estimating capital inputs to reflect the changes generated by the 2003 Comprehensive Revision of NIPA.
For more information, please see "Overview of Capital Inputs for the BLS Multifactor Productivity Measures" (PDF 215 KB).
Last Modified Date: July 31, 2006