An Overview of BEA’s Other Data Programs

1. An Overview of BEA’sOther Data Programs Charles Ian Mead PNREAP Regional Workshop Reno, NV September 29, 2009

2. Products of Other Directorates • National Economic Accounts • Gross Domestic Product (GDP) • Personal income • International Economic Accounts • International transactions • Direct investments • Operations of U.S. and foreign multinationals • Industry Accounts • Input-output accounts • GDP by industry • Satellite accounts (e.g., travel and tourism)

3. Products of the Regional Directorate • Personal income by state and local areas • GDP by state and metropolitan area • Regional economic multipliers (RIMS II)

4. Three Ways to Measure GDP • Value added approach: Gross output less intermediate inputs • Expenditure approach: C + I + G + NX • Income approach • Compensation of employees • Taxes on production and imports (TOPI) less subsidies • Gross operating surplus

5. National Income and Product Accounts • Expenditure and income measures • Main focus on U.S. economy • Three main sectors, plus “rest of the world” • Industry detail limited to a few items (e.g., compensation, corporate profits) • Price and quantity indexes based on expenditures

6. Main Industry Accounts • Input-Output Accounts • Show structure of U.S. economy • “Use table” shows GDP measured all three ways • GDP by Industry • Value added approach • “Double deflation” for price and quantity indexes

7. GDP by State and Metro Area • Counterpart of U.S. GDP measures • By state: Most detailed methodology • By metro area: Covers 90 percent of all U.S. economic activity • Primarily based on an income approach

8. Currently Available statistics • Annual data from 1963-2008 • Total GDP and components (for states) by industry • 1963-1997: 2-digit SIC industries • 1997-2008: NAICS sectors or sub-sectors • Current dollars, chained (2000) dollars, and quantity indexes

9. Chain Dollar Statistics • Based on “implicit” price deflators • National-level prices by industry are used • Do not account for possible differences in • Prices of the same goods across regions • The use of intermediate inputs across regions

10. Release Schedule • GDP by state: June following the reference year • GDP by metropolitan area: September following the reference year • Note: Next year is an exception due to comprehensive revision

11. Percent Change in Real GDP by State

12. Percent Change in Real GDP by Metro Area

13. Recent Improvements • Acceleration of industry detail for GDP by state by a full year (2005) • Development of GDP by metropolitan area statistics (2007) • Acceleration of GDP by metropolitan area by a full year (2009)

14. Future Improvements • Incorporation of recent changes made in the NIPAs (2010-2011) • New treatment of disasters • Cafeteria plans • Misreporting adjustments • Capitalization of R&D expenditures (2013)

15. RIMS II • Multipliers for regional impact analyses • Many different types available • Examples of analyses • Military base closure • New sports stadium • New highway construction • Based on data from Industry and Regional accounts

16. Availability • Current multiplier sets • 2006: 60 aggregated industries • 1997: 473 detailed industries • Customized product for a fee • By user-defined region • By industry

17. Improvements • Recent improvements • Online order and delivery system: Orders in 1-2 days rather than 1-2 weeks (2006) • Introduction of value added multipliers (2007) • Future improvements: Detailed industry multipliers for 2002 (early 2010)