- Jan. 25, 2022
- Jan. 25, 2022
- Jan. 21, 2022
April 20, 2018
Research and Statistics Department
Bank of Japan
In this paper, we explain revisions made to the Consumption Activity Index (CAI) compilation methodology. The revisions aim to address those made to the System of National Accounts in Japan (SNA) which consists of the introduction of the 2008 SNA, a new international statistical standard for National Accounts, as well as the benchmark year revision. First, we update the weights of goods and services in accordance with the revised National Accounts. In calculating these weights, we adopt a methodology based on the Input-Output Table for Japan, instead of one based on demand-side statistics which had been adopted to date. Second, we change the compilation method for durable goods, automobiles and household electrical appliances, and incorporate new source statistics for non-durable goods such as tobacco and services such as financial services, thus improving the accuracy of the index. Owing to these revisions, the revised CAI is consistent with the current Annual Report of National Accounts (ARNA), while maintaining the merits of the original CAI. In addition, the discrepancy between private consumption in the ARNA and those by type as well as the CAI itself decreased.
The authors would like to thank Toshitaka Sekine, Koji Nakamura, Hibiki Ichiue, Toshinao Yoshiba, Masato Higashi, Naoko Hara, Hiroshi Kawata and the staff of the Bank of Japan for their helpful comments. The authors are also grateful to Izumi Mori for her collaboration in constructing the dataset used for the analysis herein. Any errors or omissions are the responsibility of the authors. The views expressed here are those of the authors and should not be ascribed to the Bank of Japan.
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