Territorial Adjustments in Government Transactions BEA Government Statistics Users Conference, Sep. 14, 2006 Benyam Tsehaye Economist, Federal Branch Topics To Be Covered Territorial adjustments Aggregate economic measures Definition of the United States The conceptual problem
BEA Government Statistics Users Conference, Sep. 14, 2006
Economist, Federal Branch
-The U.S. Territories
∙U. S. Virgin Islands
-The Commonwealth of Puerto Rico
-The Commonwealth of Northern Mariana Islands
This presentation is primarily about transactions between the U.S. Government and the territories.
-integrated set of economic accounts
-show the composition of production and
distribution of income earned in
- Examples: Gross Domestic Product (GDP), Gross Domestic Income (GDI), Personal Income and Personal Saving
GDP is the featured measure of production in the U.S.
-production by labor and property located in the U.S.
-consistency with other key economic indicators -international comparability
GNP measures production by labor and property supplied by U.S. residents in or outside the U.S.
-ITAs emphasize customs and therefore view the U.S. territories as part of the U.S.
-NIPAs, most source data traditionally cover the 50 States and the District, and view the U.S. territories as part of the rest of world
U.S. territories, $5.2 billion
Foreign, $2.7 billion
Domestic, $485.2 billion
-Gov. social benefits to persons ($485.2)
-Government social benefits to the rest of the world ($2.7)
Recognize these transactions as flows between the U.S. Government and rest-of-the-world in the 2008 Comprehensive Revision of the NIPAs.
- Identified the main NIPA series and tables affected
by implementation of the proposal
-Identified sources to allocate territorial
adjustments to transaction types—grants, social
-Will concentrate on refining historical data and examining implications to NIPA tables and series
If the proposal is implemented as presented today:
NIPA table 3.2 (Federal Receipts and Expenditures) would be affected, mainly those series related to Social Insurance Programs