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8.29. Compared to using information on transactions from before a threshold increase, the Japanese approach to estimating below-threshold transactions is advantageous as the estimations can be updated periodically with recent data so that structural and price changes over time can be captured. Further, since the fit of the Pareto distribution is assessed on a regular basis, statisticians are able to choose another statistical approach if the implemented method does not fit the data.
[1] There are some exemptions from the reporting requirement, including transactions below the reporting threshold (the current reporting threshold is ¥30 million or the equivalent in foreign currency per transaction, in principle) and payments/receipts related to the export/import of goods which have gone through the customs of Japan. Other exemptions are specified in the ministerial ordinance.
[2] Transport is captured mainly by direct reports. Travel is estimated by using border and household surveys and official statistics.