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 cost- effective manner  The nation’s economic accountant: comprehensive double-entry accounts and economics

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

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?

What do we produce?  Industry accounts  GDP by industry  Input-output tables  Show the structure of the US economy  Travel and tourism satellite accounts

What do we produce?  Regional economic accounts  Personal income  Gross domestic product (GDP) by state  Regional economic multipliers

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

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

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

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

Personal Income: Percent Change, 2006:II :III

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

106 Counties Account for Half of 2004 U.S. Personal Income

Per Capita Income Relative to US

Per Capita Income Relative to US

Percent of State Personal Income, Reno-Sparks, NV(MSA)

Personal Income Average Annual Growth Rates, U.S. and Neighboring Metropolitan Areas

Per Capita Personal Income, Percent of United States - Reno-Sparks, NV (MSA)

Per Capita Personal Income, Percent of Nevada - Reno-Sparks, NV (MSA)

Personal Income (Reno-Sparks MSA) Average Annual Growth from United States Average Growth = 5.2%

Per Capita Personal Income (Reno-Sparks MSA) Average Annual Growth, United States Average Growth = 3.7%

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

Currently available GDP-by-State estimates  Annual data starting 1963 to 2005  Total GDP by state and components by industry  2-digit SIC industries  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 current- dollar GDP-by-state estimates for detailed industries

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 months after reference year  Based on more complete source data  In 2007 we plan to release advanced total and industry in June

Real GDP by State: Percent Change,

Uses of BEA’s regional income and product estimates  By the US Govt, to distribute over $215 billion in federal funds to states

BEA Regional Income & Product Accounts Estimates Used to Distribute $215 Billion in Federal Funds, FY 2005 Source: General Services Administration, Catalog of Federal Domestic Assistance, April 2006 [Funded Programs Are Shown in Millions of Dollars]

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

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

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

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)

Contact Information Robert L. Brown Chief, Regional Economic Measurement Division