An Overview of BEA’s Other 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 ▪ Total GDP and components (for states) by industry  : 2-digit SIC industries  : 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 ( )  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)