Transcript Slide 1
Overview of the Bureau of
Economic Analysis
Regional Accounts at the BEA
Robert L. Brown
Calibrating the Nevada Economy: Data Tools for Assessing Our
State and Local Economies
Reno, Nevada
February 2, 2007
BEA Mission
To promote a better understanding of
the U.S. economy by providing the most
timely, relevant, and accurate economic
accounts data in an objective and costeffective manner
The nation’s economic accountant:
comprehensive double-entry accounts and
economics
www.bea.gov
What do we produce?
National economic accounts
Gross Domestic Product (GDP)
Personal income
Price measures
Personal consumption expenditure (PCE)
deflator
Inflation measure favored by the Federal Reserve
Board
www.bea.gov
What do we produce?
International economic accounts
International transactions
Direct investments
US investments abroad
Foreign investments in the US
Operations of US and foreign multinational
companies
How much off-shoring is occurring?
www.bea.gov
What do we produce?
Industry accounts
GDP by industry
Input-output tables
Show the structure of the US economy
Travel and tourism satellite accounts
www.bea.gov
What do we produce?
Regional economic accounts
Personal income
Gross domestic product (GDP) by state
Regional economic multipliers
www.bea.gov
How do we produce estimates?
Compile data from many sources
Federal, state and local govt. sources
Census Bureau
Bureau of Labor Statistics
Internal Revenue Service
Private sector sources, e.g.
Financial reports from corporations for pension
contributions
Insurance data from the National Association of Insurance
Commissioners
Directly collect surveys in international area
www.bea.gov
Regional Economic Data
Personal income
The most current, comprehensive and
consistent measure available of
household income
Comprehensive: measures income
received by persons from
production (returns to labor and capital)
business and government transfers
Consistent across time and geography
www.bea.gov
Components of personal income
Compensation
Wages and salaries
Supplements
Employer payments for pensions and health insurance
Employer contributions for social insurance
Proprietors’ income (sole and partnerships)
Dividends, interest and rent (property
income)
Government and business transfers
Including Social Security, UI, Medicare/Medicaid,
workers’ compensation benefits
Less: Contributions for social insurance
www.bea.gov
State personal income
Quarterly estimates by place of residence
from 1948
Now 3 months after the end of the quarter
Annual estimates by place of residence from
1929
Preliminary 3 months after end of year
Detailed 9 months after the end of the year
Includes per capita and disposable personal
income estimates
Earnings and annual employment by industry
by place of work
www.bea.gov
Personal Income: Percent Change, 2006:II - 2006:III
www.bea.gov
Local area personal income
Annual data from 1969
Metro area PI now released 9 months after EOY
County PI released 16 months after EOY
Geographic availability:
3,111 counties
361 Metropolitan Areas
577 Micropolitan Areas
179 BEA Economic Areas
Earnings and employment by industry by
place of work
Compensation by county and industry available
12 months after reference year
www.bea.gov
106 Counties Account for Half of 2004 U.S. Personal Income
www.bea.gov
1969 Per Capita Income Relative to US
www.bea.gov
2004 Per Capita Income Relative to US
www.bea.gov
Percent of State Personal Income, 1969-2005
Reno-Sparks, NV(MSA)
29
27
Percent
25
23
21
19
www.bea.gov
20
05
20
01
19
97
19
93
19
89
19
85
19
81
19
77
19
73
19
69
17
Personal Income Average Annual Growth Rates, 1995-2005
U.S. and Neighboring Metropolitan Areas
10
9.1
8
6.6
6.3
5.6
6
Percent
5.2
4
2
0
United States
www.bea.gov
Reno-Sparks
Sacramento
San Francisco
Las Vegas
Per Capita Personal Income, 1969-2005
Percent of United States - Reno-Sparks, NV (MSA)
140
135
Percent
130
125
120
115
www.bea.gov
20
05
20
01
19
97
19
93
19
89
19
85
19
81
19
77
19
73
19
69
110
Per Capita Personal Income, 1969-2005
Percent of Nevada - Reno-Sparks, NV (MSA)
125
120
Percent
115
110
105
www.bea.gov
20
05
20
01
19
97
19
93
19
89
19
85
19
81
19
77
19
73
19
69
100
Personal Income (Reno-Sparks MSA)
Average Annual Growth from 1994-2004
United States Average Growth = 5.2%
8.0
6.9
6.8
6.2
Percent
6.0
4.0
2.0
0.0
Reno-Sparks (MSA)
www.bea.gov
Storey
Washoe
Per Capita Personal Income (Reno-Sparks MSA)
Average Annual Growth, 1994-2004
United States Average Growth = 3.7%
5.0
4.0
3.9
3.9
3.3
Percent
3.0
2.0
1.0
0.0
Reno-Sparks (MSA)
www.bea.gov
Storey
Washoe
Gross Domestic Product (GDP) by State
Most comprehensive measure of overall
state economic activity
State counterpart of the US GDP
GDP by State is the sum of
Compensation of employees
Gross operating surplus
Taxes on production and imports
www.bea.gov
Currently available GDP-by-State
estimates
Annual data starting 1963 to 2005
Total GDP by state and components by
industry
2-digit SIC industries 1963-1997
NAICS sectors or sub-sectors 1997 forward
Estimates in current dollars, chained (2000)
dollars and quantity indexes
Derivation of real GDP by state:
apply national implicit price deflators to currentdollar GDP-by-state estimates for detailed
industries
www.bea.gov
GDP by State release cycle
Advance accelerated total GDP by state
June following reference year
Advance accelerated sector industry detail
October following reference year
Revised total and subsector industry
June -- 18 months after reference year
Based on more complete source data
In 2007 we plan to release advanced total
and industry in June
www.bea.gov
Real GDP by State: Percent Change,
2001-2005
www.bea.gov
Uses of BEA’s regional income and
product estimates
By the US Govt, to distribute over $215
billion in federal funds to states
www.bea.gov
BEA Regional Income & Product Accounts Estimates
Used to Distribute $215 Billion in Federal Funds, FY 2005
[Funded Programs Are Shown in Millions of Dollars]
Child Care &
Development
Block Grant,
$2,083
Vocational
Education
Basic Grants
to States,
$1,168
Rehabilitation
Services
Vocational
Rehabilitation
Grants to States,
$2,604
Other,
$1,979
Child Care
Mandatory &
Matching Funds,
$2,717
Foster Care
Title IV-E,
$4,371
State Children's
Insurance
Program (CHIP),
$4,725
Adoption
Assistance,
$1,712
Source: General Services Administration,
Catalog of Federal Domestic Assistance, April 2006
Uses of BEA’s regional income and
product estimates
By the US Govt, to distribute over $215
billion in federal funds to states
By the states, to develop state
government revenue and expenditure
estimates
Used in all states
21 states have tax or spending limits tied to
state personal income
www.bea.gov
State Tax and Expenditure Limits
Uses of BEA’s regional income and
product estimates
By the US Govt, to distribute over $215
billion in federal funds to states
By the states, to develop state
government revenue and expenditure
estimates
21 states have spending limits tied to state
personal income
By business, to determine areas for new
business location and expansion decisions
www.bea.gov
RIMS
Regional Input-Output Modeling System
Multipliers show impact of output
change in any industries on 60 industry
groups and the area total
Effects on output, employment, and
labor earnings
User requests multipliers for any state,
county or combination of areas
Customized product produced for a fee
www.bea.gov
Recent uses of RIMS multipliers
How military base closings affect local
economies (BRAC)
Impact of a nuclear plant closure on Erie and
Cattaraugus Counties, NY (private)
The economic impact of Super Bowl XXXVII
on the San Diego economy (private study
funded by the NFL)
The costs of Gulf oyster harvesting controls
(FDA)
www.bea.gov
www.bea.gov
Contact Information
Robert L. Brown
Chief, Regional Economic Measurement Division
202-606-9246
[email protected]
www.bea.gov