In 1991, the U.S.Council of Economic Advisers undertook an initiative
to increase the quality of economic statistics. One specific objective was to reduce
the size of revisions in GNP estimates. We present evidence that one straightforward
and inexpensive way of forwarding this objective is for the Department of Commerce
to utilize better publicly available information released by other governmental agencies.
An important caveat, however, applies: the relationship appears to be non-linear.
Specifically, the inefficient use of information is concentrated in those quarters
where the change in the preliminary GNP estimate is large in absolute value.