1. Estimating Extended Supply-Use Tables in Basic Prices with Firm Heterogeneity for the United States: A Proof of Concept
Lin Z. Jones and Zhi Wang (USITC)
James J. Fetzer, Thomas F. Howells III, Erich H. Strassner (BEA)
The Fourth World KLEMS Conference
Madrid, Spain
May 23-24, 2016

2. Supply-Use Tables (SUTs), firm heterogeneity, and extended SUTs
Outline
Supply-Use Tables (SUTs), firm heterogeneity, and extended SUTs
A proof of concept analysis
Trade in Value Added
With and without firm-level heterogeneity
2016 Work plan and Beyond
BEA next steps
Collaborations with other partners

3. 1. SUTs, Firm heterogeneity, and Extended SUTs

4. Supply-Use Tables for the United States
Better harmonization with international guidelines to improve cross-country comparisons for global value chain analysis
Released in September, 2015 in BEA’s Survey of Current Business
71 industry/product detail; revised with subsequent annual revisions

5. SUT Methodology Built off balanced, Make-Use tables
A rearrangement of existing data to conform to the Supply-Use framework
New methodological work in separating taxes on products from other taxes on production to derive basic valuation
Tax data comes from both federal and state and local tax authorities
Valuation of imports required new tabulations of existing data from customs records

6. Dimensions of firm heterogeneity
OECD Proposal
Source: OECD Expert Group on Extended Supply-Use Tables: Terms of Reference
BEA Proposal

7. Proof of Concept Analysis on Firm Heterogeneity
Use tabulations from tax returns for all U.S. firms and BEA’s MNEs; decompose gross output
Globally-engaged MNEs and entirely domestic firms
Fetzer and Strassner:
To motivate longer-run BEA-Census link project on extended SUTs
BEA/USITC proof of concept on extended SUTs and TiVA
Merge firm heterogeneity project with U.S. SUTs
Incorporate modeling on basic price valuation
Produce extended SUTs with heterogeneity for 33 OECD industries and 35 products; develop associated TiVA indicators

8. Supply Table Supply Primary Manufacturing Services Imports
Commodity Supply
932,835
681
5,496
413,425
1,352,437
30,908
5,560,845
38,963
1,649,390
7,280,106
18,626
289,409
20,164,394
200,292
20,672,721
Special
4,668
8,552
220,749
233,969
Industry Output
982,370
5,855,603
20,217,405
2,483,856
29,539,233

9. Supply Table- break down by MNE
Primary
Manufacturing
Services
Imports
Commodity Supply
Domestic MNE
Foreign MNE
Domestic
102,770
177
186
103,134
55,927
180
104
56,211
774,138
324
5,205
779,667
413,425
5,590
2,193,731
6,859
2,206,180
3,246
936,219
3,000
942,465
22,072
2,430,895
29,104
2,482,071
1,649,390
3,015
106,170
3,320,068
3,429,252
1,731
34,961
1,033,608
1,070,300
13,880
148,278
15,810,718
15,972,877
200,292
Special
1,446
119
1,564
767 25
793
2,455
8,408
10,863
220,749
Industry Output
111,376
60,904
810,090
2,301,523
972,127
2,581,952
3,327,231
1,036,737
15,853,436
2,483,856
29,539,233

10. Use Table Use Primary Manufacturing Services Final Demand Exports
Total Use
121,485
852,477
97,158
197,316
84,002
1,352,437
84,739
1,746,143
1,284,368
3,222,579
942,277
7,280,106
193,491
1,159,892
6,395,313
12,077,741
846,284
20,672,721
Special
-4,855
26,581
61,255
-50,967
201,956
233,969
Total Intermediates
394,860
3,785,093
7,838,093
12,018,046
Value Added
587,510
2,070,510
12,379,312
Industry Output
982,370
5,855,603
20,217,405
15,446,669
2,074,518
29,539,233

11. Use Table- Break Down by MNE
Primary
Manufacturing
Services
Final Demand
Exports
Total Use
Domestic MNE
Foreign MNE
Domestic
513
275
6,761
21,207
8,450
26,324
1,222
703
8,839
22,675
6,165
103,134
283
158
3,228
10,977
4,518
14,168
701
406
5,005
12,246
4,521
56,211
2,867
1,115
80,534
182,555
60,550
177,544
5,275
2,992
41,032
151,888
73,316
779,667
Imports
2,440
907
22,404
90,287
34,097
221,800
4,974
2,050
23,958
10,507
413,425
638
256
18,904
203,359
95,236
146,094
30,877
11,033
263,017
1,081,469
355,297
2,206,180
322
149
8,113
97,745
54,033
74,221
10,717
4,143
118,416
379,590
195,016
942,465
982
402
26,531
217,581
106,008
255,685
53,128
19,048
465,087
945,656
391,964
2,482,071
9,803
6,484
12,154
190,217
165,206
140,758
100,796
80,839
127,268
815,864
1,649,390
2,603
1,306
43,721
97,343
40,544
116,771
404,804
136,712
1,050,261
1,398,120
137,066
3,429,252
844
431
14,978
35,336
14,475
40,774
105,008
36,888
303,854
430,306
87,406
1,070,300
6,910
3,507
111,956
306,178
126,834
347,572
790,022
295,079
3,127,681
10,235,327
621,812
15,972,877
388 95
6,753
3,085
830
30,150
7,194
2,472
135,338
13,988
200,292
Special
-85
-46
-993
141
279
266
-1,221
-578
-4,815
2,361
6,256
1,564
-43
-23
-503 72
134
-618
-292
-2,439
1,194
3,169
793
-448
-243
-5,211
2,898
2,088
4,053
7,107
384
-3,436
-188,861
192,531
10,863
119 50
2,572
505
253
15,751
1,060
531
65,571
134,339
220,749
Total Intermediates
28,135
14,822
351,903
1,459,485
713,542
1,612,066
1,521,046
592,410
5,724,637
12,018,046
Value Added
83,240
46,082
458,187
842,038
258,586
969,886
1,806,185
444,327
10,128,800
Industry Output
111,376
60,904
810,090
2,301,523
972,127
2,581,952
3,327,231
1,036,737
15,853,436
15,446,669
2,074,518
29,539,233

12. 2. Trade in Value Added

13. The Share of Domestic Value Added in U.S. Gross Exports
2011:
Domestic value: 85.5%
Foreign value: 14.5%

14. The Shares of Domestic Value Added in U. S
The Shares of Domestic Value Added in U.S. Gross Exports by Sector, 2011
Mining/extraction
Transportation services
National average: 85.5%
manufacturing
services

15. The Shares of Domestic Value Added in U. S
The Shares of Domestic Value Added in U.S. Gross Exports by Manufacturing Sector, 2011

16. Domestic Value Added Share of Gross Exports

17. The Shares of Direct and Indirect Domestic Value Added in U. S
The Shares of Direct and Indirect Domestic Value Added in U.S. Gross Exports by Manufacturing, 2011

18. Direct and Indirect Domestic Value Added in Exports by Firm Type

19. U.S. Work Plan and Beyond

20. U.S. Work Plan Moving Forward
Time-series SUTs
Basic value domestic and import Use tables; ISIC/CPC tables
Firm-level heterogeneity and extended tables
BEA-Census Microdata link project
Enhancements to international trade data
Efforts to reconcile bilateral asymmetries and to expand services detail by product and country
North America Regional SUTs and TiVA database
2018 for NA tables and TiVA statistics; 2020 for extensions
The 2nd APEC Capacity Building and Technical Assistance Workshop – October 2016