BEA

1
BEAs Industry Accounts Improved Measures of
Outputs, Inputs, and Value Added
Erich H. Strassner
World KLEMS Conference Harvard University August
19-20th, 2010
2
Balanced I-O Framework
3
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

4
GDP and Real VA for All Industries
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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 and data from other
  government agencies
• Detailed commodity distributions retained from
  benchmark estimates manufacturing detail updated
  annually

6
More Accurate Time Series of Output
7
More Accurate Price Measurement
8
Measuring Intermediate Inputsnominals

• 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

9
Economy-wide KLEMS shares
2008
10
Measuring Intermediate Inputsprices

• 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

11
Measuring InputsImportance of Imports
12
Imported Materials share of Manufacturing inputs
13
Measuring Value Added

• Value added Gross Output Intermediate
  Input
• Value added Compensation
• Gross Operating Surplus Taxes on
  production

14
Quality-Weighted VA in Benchmark Year
15
Looking Aheadfuture 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