The use of fixed weights not only tends to cause errors and revisions in real GDP and prices when base periods are updated, but the errors themselves are biased.
In computing these series, BEA used different base periods, depending upon the time period analyzed, for example, for decades and business cycles, BEA used the midpoints of these periods.
The advantages of the new indexes are particularly important for long-term time series, such as those presented in this issue of the Survey of Current Business, and for analyses of current economic conditions as the base period becomes out of date.
This article briefly reviews the advantages of BEA'S chain-type indexes for various types of analyses, explains the conceptual and empirical problems encountered when using chained-dollar estimates far from the base period, describes the time series BEA WHI publish, presents several sets of tables and estimates designed to assist analysts in using the NIPA chain-type estimates beginning with 1929, and discusses work that BEA is considering to further improve its chain-type indexes for the most recent quarters.
Low Ratio Base Periods, Start-up Operations, or Expansion of Foreign Investment.
6) We commend the IRS for proposing alternative base periods and allowing taxpayers to elect retroactively to apply the proposed regulations to tax years affected by the temporary regulations.
ERGI is the amount of intercompany loans (related-group indebtedness) in the current year (which is an average of the beginning and end of the year amounts) in excess of the amount that would have been proportionate to the average allowable related-group indebtedness to CFCs during the five base period tax years.
group's debt-to-asset ratio during the base period tax years.