Home Forum Research Data in NIPA Reply To: Data in NIPA

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Jonathan Nitzan
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In his interesting 2010 book, Misplaced Generosity. Extraordinary Profits in Alberta’s Oil and Gas Industry (Edmonton, Alberta: Parkland Institute, University of Alberta), Reagan Boychuk offers an account of Alberta’s oil and gas revenues, costs and profit, plus imputations of ‘normal’ and ‘excess profit’. (Twitter thread)

The computations/imputations are built from the bottom up – i.e., they are based on estimates of the industry’s output, average oil/gas selling prices and investment and production cost, so, on the face of it, they reflect the business performance of Alberta’s oil and gas industry — and nothing else.

But here is a question: output levels are collected at the provincial levels, as are selling prices (I assume). But capital and operating costs probably come from the companies themselves, and since these companies are often large transnationals rather than Albertan only, it is hard to know the extent to which their data reflect local operations ‘uncontaminated’ by transfer pricing.