Download State and Metropolitan Gross Product

State and Metropolitan Area Gross
Domestic Product: What, Why,
and When?
Clifford H. Woodruff III
PNREAP Workshop
Reno, NV
September 29, 2009
What Is GDP by State and Metropolitan Area?
 Measure of market value of final goods
and services
 State or metropolitan area counterpart
to the nation’s GDP
 GDP may be measured in three ways
 Value-added (or production) approach
 Income approach
 Expenditures approach
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How Do We Measure GDP by State?
 Income approach
 Compensation of employees
 Taxes on production and imports less subsidies
 Gross operating surplus
 Corporate profits and proprietors’ income
 Depreciation
 Rental income
 Net business interest, miscellaneous payments
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Comparison of Regional GDP and Personal
Income
 Common components
 Wages and salaries, employer contributions, and
proprietors’ income
 In Personal Income, not GDP
 Dividends, personal interest, Social Security
benefits, Medicare, Medicaid
 In GDP, not Personal Income
 Taxes on production, corporate profits
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Why Are Regional GDP Statistics Important?
 Most comprehensive measure of a
region’s economy
 Distribute federal funds
 Used for tax analysis
 Used for state budget forecasting
 Used for regional policy planning
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The GDP-by-State Series
 Current-dollar GDP by State
 Compensation of employees
 Taxes on production and imports less subsidies
 Gross operating surplus
 Real (chained-dollar) GDP by State
 Advance GDP by State
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Real (chained-dollar) GDP by State
 Uses national implicit price deflators for
industries
 Assumes sales are at national prices
 Better than simply deflating by national
GDP deflator but does not explicitly
account for regional price variation
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What GDP-by-State Data Are Available?
 Advance statistics for 2008 on NAICS
basis
 Current and real dollars, quantity indexes
 21 industries at sector level
 1997-2007 on NAICS basis
 Current dollars by income component
 Real dollars and quantity indexes by industry, no
components
 64 industries at sub-sector level
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What GDP-by-State Data Are Available?
 1963-1997 on SIC basis
 Current dollars by income component
 1990-1997 real dollars and quantity indexes by
industry, no components
 63 industries at approximately two-digit level
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The GDP-by-Metropolitan-Area Series
 Current-dollar GDP by Metropolitan Area
 Real (chained-dollar) GDP by
Metropolitan Area
 Accelerated GDP by Metropolitan Area
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What GDP-by-Metropolitan-Area Data Are
Available?
 Accelerated statistics for 2008 on NAICS
basis
 Current and real dollars, quantity indexes
 21 industries at sector level
 2001-2007 on NAICS basis
 Current and real dollars, quantity indexes
 64 industries at sub-sector level
www.bea.gov
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When Are the Regional GDP Statistics
Released?
 GDP by State in June
 Advance data for previous year
 Revised data for previous three years
 GDP by Metropolitan Area in September
 Accelerated data for previous year
 Revised data for previous three years
 September 2009 is different
 Schedule differs for a comprehensive revision
www.bea.gov
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How To Use the Regional GDP Statistics
 To compute a region’s or industry’s
growth rate
 Use real, inflation-adjusted, data (caveat)
 Not current-dollar data
 To compute an industry’s or component’s
share of GDP
 Use current-dollar data
 Not real, inflation-adjusted, data
www.bea.gov
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Contact
 Clifford H. Woodruff III
 Chief, Regional Product Branch
 Regional Product Division
 Bureau of Economic Analysis
 [email protected]
 202-606-9234
www.bea.gov
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