1. www.bea.gov BEAs Industry Accounts: Improved Measures of Outputs, Inputs, and Value Added Erich H. Strassner World KLEMS Conference Harvard University August 19-20 th, 2010

2. www.bea.gov 2 Balanced I-O Framework

3. www.bea.gov 3 2010 Comprehensive Revision Time-series annual I-O accounts, 1998-2008 Incorporated 1997/2002 benchmark I-O accounts and 2009 NIPA revision Expanded annual data on business expenses by industry Improved measures of price change for the services sector

4. www.bea.gov 4 GDP and Real VA for All Industries

5. www.bea.gov 5 Measuring Output Industry and commodity output based on a variety of sources Economic Census data Census annual surveys (ASM, SAS, etc.) Trade association data and data from other government agencies Detailed commodity distributions retained from benchmark estimates; manufacturing detail updated annually

6. www.bea.gov 6 More Accurate Time Series of Output

7. www.bea.gov 7 More Accurate Price Measurement

8. www.bea.gov 8 Measuring Intermediate Inputsnominals Benchmark estimates based on Census data (~70%) and other data sources KLEMS input assignments based on 1997 and 2002 benchmark I-O accounts Definitions consistent with the Census of Manufactures and Business Expenses Survey Annual controls based on Census core expense initiative

9. www.bea.gov 9 Economy-wide KLEMS shares 2008

10. www.bea.gov 10 Measuring Intermediate Inputsprices Domestic and imported intermediate inputs deflated separately Nominal weights based on import use tables BLS Producer Price Indexes BLS international price program Aggregation using Fisher index number formulas

11. www.bea.gov 11 Measuring InputsImportance of Imports

12. www.bea.gov 12 Imported Materials share of Manufacturing inputs

13. www.bea.gov 13 Measuring Value Added Value added = Gross Output – Intermediate Input Value added = Compensation + Gross Operating Surplus + Taxes on production

14. www.bea.gov 14 Quality-Weighted VA in Benchmark Year

15. www.bea.gov 15 Looking Aheadfuture extensions Time-series consistency of Benchmarks Historical I-O accounts, 1947-1997 BEA/BLS work on prototype industry- level production account Longer term: KLEMS statistics available prior to 1998; industry production account available for earlier years