Www.bea.gov BEAs Industry Accounts: Improved Measures of Outputs, Inputs, and Value Added Erich H....

www.bea.gov

BEA’s Industry Accounts:

Improved Measures of Outputs, Inputs, and Value AddedErich H. Strassner

World KLEMS ConferenceHarvard University

August 19-20th, 2010

2www.bea.govwww.bea.gov

Balanced I-O Framework

Mining and Construction

ManufacturingTrade and

TransportationUtilities

Finance, Insurance, and

Real EstateOther

Personal Consumption Expenditure

Private Fixed Investment

Change in Private

InventoriesNet Exports

Government Consumption

and Investment

Mining and Construction

Manufacturing

Trade and Transportation

Utilities

Finance, Insurance, and

Real Estate

Other

Compensation

Taxes on Production and

Imports

Gross Operating Surplus

Total Commodity Output and

Value Added

CO

MM

OD

ITIE

S

Total Industry Output and Final Uses

VA

LU

E A

DD

ED

FINAL USESINDUSTRIES


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


GDP and Real VA for All Industries

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Pe

rce

nt

Ch

an

ge

s

GDP Real VA for All Industries


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


More Accurate Time Series of Output

Misreporting Output for NAICS 812110

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Mil

lio

ns

of

do

lla

rs

Annual Series Benchmark Levels "Benchmarked" Annual Series


More Accurate Price Measurement

Real Gross Output for Retail Trade

-5

-3

-1

1

3

5

7

9

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Per

cen

t C

han

ges

Previously Published Published


Measuring Intermediate Inputs—nominals

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


Economy-wide KLEMS shares

2008Purchased Services

25% Capital 24%

Labor 30%

Materials 18%

Energy 3%


Measuring Intermediate Inputs—prices

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


Measuring Inputs—Importance of Imports

Imports as a Share of U.S. Domestic Supply

0

1

2

3

4

5

6

7

8

9

10

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Per

cen

t

Imported Intermediate Inputs as a Share of Total Imports

44

46

48

50

52

54

56

58

60

62

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Pe

rce

nt


Imported Materials’ share of Manufacturing inputs

0.0

5.0

10.0

15.0

20.0

25.0

1999 2000 2001 2002 2003 2004 2005 2006

Perc

ent

Annual Industry Accounts International Accounts


Measuring Value Added

Value added = Gross Output – Intermediate

Input

Value added = Compensation + Gross Operating

Surplus + Taxes on production


Quality-Weighted VA in Benchmark Year

59,000 60,000 61,000 62,000 63,000 64,000 65,000 66,000 67,000

Value added (Millions of dollars)

Income-based

Combined

Production-based


Looking Ahead—future 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

Www.bea.gov BEAs Industry Accounts: Improved Measures of Outputs, Inputs, and Value Added Erich H....

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