overview of the bureau of economic analysis
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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. - PowerPoint PPT PresentationTRANSCRIPT
Overview of the Bureau of Economic Analysis
Regional Accounts at the BEA
Robert L. BrownCalibrating the Nevada Economy: Data Tools for Assessing
Our State and Local EconomiesReno, Nevada
February 2, 2007
www.bea.gov
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 cost-effective 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
Regional Economic Data
www.bea.gov
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
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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
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106 Counties Account for Half of 2004 U.S. Personal Income
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1969 Per Capita Income Relative to US
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2004 Per Capita Income Relative to US
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Percent of State Personal Income, 1969-2005
Reno-Sparks, NV(MSA)
17
19
21
23
25
27
29
Per
cent
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Personal Income Average Annual Growth Rates, 1995-2005
U.S. and Neighboring Metropolitan Areas
5.2
6.66.3
9.1
5.6
0
2
4
6
8
10
United States Reno-Sparks Sacramento San Francisco Las Vegas
Per
cen
t
www.bea.gov
Per Capita Personal Income, 1969-2005 Percent of United States - Reno-Sparks, NV (MSA)
110
115
120
125
130
135
140
Per
cen
t
www.bea.gov
Per Capita Personal Income, 1969-2005Percent of Nevada - Reno-Sparks, NV (MSA)
100
105
110
115
120
125
Per
cen
t
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Personal Income (Reno-Sparks MSA)Average Annual Growth from 1994-2004 United States Average Growth = 5.2%
6.2
6.86.9
0.0
2.0
4.0
6.0
8.0
Reno-Sparks (MSA) Storey Washoe
Per
cen
t
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Per Capita Personal Income (Reno-Sparks MSA) Average Annual Growth, 1994-2004
United States Average Growth = 3.7%
3.9
3.3
3.9
0.0
1.0
2.0
3.0
4.0
5.0
Reno-Sparks (MSA) Storey Washoe
Per
cen
t
www.bea.gov
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
current-dollar 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
BEA Regional Income & Product Accounts Estimates Used to Distribute $215 Billion in Federal Funds, FY 2005
Source: General Services Administration, Catalog of Federal Domestic Assistance, April 2006
State Children's Insurance
Program (CHIP), $4,725
Adoption Assistance,
$1,712
Foster CareTitle IV-E,$4,371
Other, $1,979
RehabilitationServices
VocationalRehabilitation
Grants to States,$2,604
Child Care Mandatory &
Matching Funds,$2,717
Child Care & Development Block Grant,
$2,083
Vocational Education
Basic Grantsto States,$1,168
Medicaid $193,198
All other$21,358
[Funded Programs Are Shown in Millions of Dollars]
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
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
State Tax and Expenditure Limits
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
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. BrownChief, Regional Economic Measurement
Division202-606-9246