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Annual coherence adjustments in the national accounts
Describes the different types of adjustments made, and shows the size and allocation of these adjustments as balanced through the Input-Output Supply and Use Tables incorporated in the 1999 ONS Blue Book.
The national accounts aim to present a fully consistent picture of the UK economy. In practice the data sources used in the accounts are subject to statistical error and complete coherence between measures of economic activity is not achieved without making specific adjustments. For years except the most recent (up to 1997 in the 1999 ONS Blue Book) these adjustments are made at current prices using Supply and Use Tables through the Input-Output framework. This note describes the background to the adjustments, shows how they are made, and the adjustments made to the 1999 Blue Book data. The note does not cover the adjustments made to achieve coherence for the most recent periods, which are outside the Input-Output framework.
The size of coherence adjustments gives users some indication of the reliability of the accounts, particularly of the main components. However they should be treated with caution: as explained, the distinction between conceptual, quality and coherence adjustments is not easy to make; and coherence is only one aspect of the quality of the accounts other attributes such as accuracy and relevance also need to be considered. Nevertheless it is hoped that publishing these adjustments regularly in the Blue Book and Input-Output Analyses publications will, over time, give users an insight into the quality of the accounts.
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