www.bea.gov

BEA’s KLEMS Statistics:

Measuring Outputs and Intermediate InputsBrian C. Moyer

World KLEMS ConferenceHarvard University

August 19-20th, 2010

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BEA’s Industry Accounts

Input-Output Accounts Benchmark Accounts Annual Accounts KLEMS Statistics

GDP by Industry Statistics

Travel and Tourism Satellite Account

R&D Satellite Account

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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

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Measuring Output

Industry and commodity output based on a variety of sources Economic Census data Census annual surveys (ASM, SAS, etc.) Trade association data Data from other government agencies

Detailed commodity distributions retained from benchmark estimates; manufacturing detail updated annually

Expanded Census data for the services sector

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Measuring Intermediate Inputs

Benchmark estimates based on Census data (~70%) and other data sources

Annual estimates based on input category controls Benchmark-year inputs extrapolated with

output quantity change Detailed inputs “reflated” with

appropriate input prices Annual controls applied to groups of

inputs

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Measuring Value Added

Direct and indirect measures of value added by industry: VA = GO - II

Direct measures based on compensation, taxes on production, and gross operating surplus from NIPA gross domestic income measures

Gross operating surplus based on “quality-weighted” benchmark-year values; company-to-establishment adjustments applied

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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

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BEA’s KLEMS Statistics

Consistent with BEA’s Annual I-O Accounts—“use” table decomposition of E, M, & S categories by 4-digit NAICS commodities

Statistics available for 1998-2008

Chained-type price and quantity indexes and contributions by industry

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BEA’s KLEMS Statistics

EE

MM

K

K

K

L L

L E

M

S

S

S

0

10

20

30

40

50

60

Manufacturing Transportation & Warehousing Finance & Insurance

Per

cen

t o

f T

ota

l In

term

edia

te In

pu

ts

K-capital, L-labor, E-energy, M-materials, S-purchased services

Data for 2008

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Purchased Services Disaggregation

S

Outsourcing Other Services

Imports

Utilities

Telecomm

Financial

Rental & Leasing

Aggregation of 30 4-digit commodities

Domestic

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Purchased Services Shares

Input Category Shares of Nominal Intermediate InputsAll Private Industries

0

10

20

30

40

50

60

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Year

Per

cen

t

Outsourcing Other Purchased Services

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Industry production account

BEA/BLS work on aggregate production account

Ongoing work to develop prototype industry-level production account: K & L services from BLS; E, M, & S from BEA

Continued work to reconcile BEA/BLS industry output measures

Longer term: KLEMS statistics available prior to 1998; industry production account available for earlier years

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KLEMS Prices

Prices Paid by Industries for Economy-wide Inputs to Production

60

80

100

120

140

2002 2003 2004 2005 2006 2007 2008

Inde

xes

(200

5 =

100)

Source: BEA Annual Industry Accounts KLEMS price indexes for intermediate inputs, 2005-2008.

Energy

Materials

Purchased services

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Expanded Detail on Energy

Nuc lear

Petroleum and coal products

Natural gas

Other

Hydroelectric

Coal

Coal miningOil and gas extraction

Other energy products

E lectric Power

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Quarterly GDP by Industry

330

335

340

345

350

355

360

365

370

375

380

Billions of chained (2000)

dollars

330

335

340

345

350

355

360

365

370

375

380

2005 2006 2007 2008

Transportation and Warehousing Industry