Reviews government statistics programs and examines accuracy, coordination with state and local information, and prospects for development of a National Data Center.

Federal government statistics provide critical information to the country and serve a key role in a democracy. For decades, sample surveys with instruments carefully designed for particular data needs have been one of the primary methods for collecting data for federal statistics. However, the costs of conducting such surveys have been increasing while response rates have been declining, and many surveys are not able to fulfill growing demands for more timely information and for more detailed information at state and local levels. Innovations in Federal Statistics examines the opportunities and risks of using government administrative and private sector data sources to foster a paradigm shift in federal statistical programs that would combine diverse data sources in a secure manner to enhance federal statistics. This first publication of a two-part series discusses the challenges faced by the federal statistical system and the foundational elements needed for a new paradigm.

This report uses selected guidelines to evaluate the performance of four statistical agencies -- the Bureaus of the Census and Economic Analysis in the Dept. of Commerce, the Bureau of Labor Statistics in the Dept. of Labor, and the National Center for Health Statistics in the Dept. of Health and Human Services. Also provides information on the activities of the Office of Management and Budget which coordinates and oversees the statistical activities of the agencies that constitute the federal statistical system. Charts and tables.

The environment for obtaining information and providing statistical data for policy makers and the public has changed significantly in the past decade, raising questions about the fundamental survey paradigm that underlies federal statistics. New data sources provide opportunities to develop a new paradigm that can improve timeliness, geographic or subpopulation detail, and statistical efficiency. It also has the potential to reduce the costs of producing federal statistics. The panel's first report described federal statistical agencies' current paradigm, which relies heavily on sample surveys for producing national statistics, and challenges agencies are facing; the legal frameworks and mechanisms for protecting the privacy and confidentiality of statistical data and for providing researchers access to data, and challenges to those frameworks and mechanisms; and statistical agencies access to alternative sources of data. The panel recommended a new approach for federal statistical programs that would combine diverse data sources from government and private sector sources and the creation of a new entity that would provide the foundational elements needed for this new approach, including legal authority to access data and protect privacy. This second of the panel's two reports builds on the analysis, conclusions, and recommendations in the first one. This report assesses alternative methods for implementing a new approach that would combine diverse data sources from government and private sector sources, including describing statistical models for combining data from multiple sources; examining statistical and computer science approaches that foster privacy protections; evaluating frameworks for assessing the quality and utility of alternative data sources; and various models for implementing the recommended new entity. Together, the two reports offer ideas and recommendations to help federal statistical agencies examine and evaluate data from alternative sources and then combine them as appropriate to provide the country with more timely, actionable, and useful information for policy makers, businesses, and individuals.

Since 1992, the Committee on National Statistics (CNSTAT) has produced a book on principles and practices for a federal statistical agency, updating the document every 4 years to provide a current edition to newly appointed cabinet secretaries at the beginning of each presidential administration. This third edition presents and comments on three basic principles that statistical agencies must embody in order to carry out their mission fully: (1) They must produce objective data that are relevant to policy issues, (2) they must achieve and maintain credibility among data users, and (3) they must achieve and maintain trust among data providers. The book also discusses 11 important practices that are means for statistical agencies to live up to the four principles. These practices include a commitment to quality and professional practice and an active program of methodological and substantive research.