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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
 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