National Geographic Tv Schedule
Updated summary NIPA methodologies - Business Situation - national income and product accounts - Illustration This report presents summary descriptions of the principal source data and methods used to prepare the current-dollar estimates of gross domestic product (GDP) and the estimates of real GDP. (1) These descriptions have been updated to reflect the methodological improvements that were introduced in the annual revision of the national income and product accounts (NIPA's) that was released in July 2002. (2)
Current-dollar estimates
Table 1 lists the components of current-dollar GDP starting with the components on the product side and then proceeding to those on the income side (see page 22). The subcomponents, with their dollar values for 2001, are grouped according to the methodology used to prepare them.
The column for the annual estimates covers the revision cycle for those estimates and notes the major differences in methodology as the estimates move through the three annual revisions to a benchmark revision. (3) For example, for "most durable and nondurable goods" in personal consumption expenditures (the first item on the product side), the table indicates one methodology for benchmark years and another for all other years.
The column for the quarterly estimates covers only the advance estimate for the current quarter--that is, the estimate prepared about a month after the end of the quarter. That estimate, rather than the preliminary or final quarterly estimate, is described because more attention focuses on the "first look" at the quarter. In addition, the column lists only the source data and methods; it does not indicate how many months of source data are available or whether the data are subject to revision by the source agency. Information on the key monthly source data appears each month in the "Business Situation" in the SURVEY OF CURRENT BUSINESS. Additional information on the monthly source data used for the advance estimate is available on BEA's Web site <www.bea.gov>.
The source data listed consist of a variety of economic measures, such as sales or receipts, wages and salaries, unit sales, housing stock, insurance premiums, expenses, interest rates, mortgage debt, and tax collections. For most components, the source data are "value data"; that is, they encompass both the quantity and price dimensions that are required for current-dollar estimates. In these cases, the methodology indicated in table 1 covers only the adjustment of the value data to derive estimates consistent with NIPA definitions and coverage.
For those estimates not derived from value data, the table indicates the combination of data with separate quantity and price dimensions that is used to derive the required value estimate and the major adjustments needed to derive estimates consistent with NIPA definitions and coverage. On the product side, a "physical quantity times price" method is used for several components. For example, the estimate for new autos is calculated as unit sales times expenditure per auto (the average list price with options, adjusted for transportation charges, sales tax, dealer discounts, and rebates). On the income side, an "employment times earnings times hours" method and variations of a "stock of assets/liabilities times an effective interest rate" method are used for several components.
Some of the source data shown in table 1 for the annual estimates are used as indicators to interpolate and extrapolate the levels established by source data that are more comprehensive, and all of the source data shown for the advance quarterly estimates are used to extrapolate the level of the preceding quarter. In addition, extrapolation and interpolation may be based on trends, as is the case when "judgmental trend" is listed in the table. (4)
Estimating methods. Table 1 refers to four methods--commodity flow, retail control, perpetual inventory, and fiscal year analysis--that are used by BEA for estimating specific components.
The commodity-flow method is used to obtain the value of final users' purchases of goods and services (that is, commodities) for BEA's benchmark input-output accounts. These values serve as the benchmark for the NIPA estimates of personal consumption expenditures (PCE), of equipment and software, and of the commodity detail for State and local government consumption expenditures and gross investment. (5) This method is also used for equipment and software in nonbenchmark years, but it is implemented in an abbreviated form. An even more abbreviated commodity-flow method is used for current quarterly estimates of equipment and software.
The retail-control method is used to estimate more than a third of the value of PCE for periods other than benchmark years. This method provides the indicator series used in extrapolating and interpolating the total of "most durable and nondurable goods" and the "control" total to which the PCE categories and residential equipment included in this group must sum. These PCE categories consist of all goods except autos and trucks, food furnished to employees, food and fuel produced and consumed on farms, standard clothing issued to military personnel, school lunches, and net foreign remittances. (6)
The perpetual-inventory method is used to derive estimates of fixed capital stock, which in turn form the basis for the estimates of consumption of fixed capital. This method is based on investment flows and a geometric depreciation formula; it is used instead of direct measurement of the capital stock because direct measurement is seldom statistically feasible on a comprehensive basis. (7)
The fiscal year analysis method provides the framework for the annual and quarterly estimates of Federal Government consumption expenditures and gross investment. The estimates of expenditures are prepared by program--that is, by activity for a group of line items or for an individual line item in the Budget of the U.S. Government. For most programs, the fiscal year analysis begins by adjusting budget outlays for coverage and for netting and grossing differences between these outlays and NIPA expenditures. The expenditures total (as adjusted) for a program is then classified by type of NIPA expenditure--for example, transfer payments and interest paid--with nondefense consumption expenditures and gross investment determined residually. When a fiscal year analysis is completed, the detailed array of NIPA expenditures by program and by type of expenditure serves as a set of control totals for the quarterly estimates. (8)
International transactions accounts (ITA's). The source data for the foreign transactions reflected in most NIPA components--such as net exports of goods and services and rest-of-the-world corporate profits--are from the ITA's, which are also prepared by BEA. (9) As noted in table 1, for some NIPA components, the ITA estimates are adjusted to conform to NIPA concepts and definitions. (10) Annual estimates of these adjustments and their definitions are shown in NIPA table 4.5B, which was published in the August 2002 SURVEY on page 70; summary quarterly estimates are shown in "Reconciliation Tables" in appendix A of the SURVEY.
Other information. In preparing the annual estimates of several of the income-side components, BEA adjusts the source data for various coverage and conceptual differences. For each subcomponent listed below, an annual NIPA table reconciles the value published by the source agency with the NIPA value published by BEA and identifies the BEA adjustments. The following is a list of the subcomponents and their corresponding reconciliation tables, which were published in the August 2002 SURVEY, beginning on page 120: Consumption of fixed capital, table 8.22; nonfarm proprietors' income, table 8.23; farm proprietors' income, table 8.24; corporate profits, table 8.25; net interest, table 8.26; and wages and salaries, table 8.27.
Real estimates
Table 2 shows which one of three methods--deflation, quantity extrapolation, and direct base-year valuation--is used to prepare the quantity index for each detailed product-side component of real GDP and identifies the source data with which the method is implemented. (11) Deflation is used for most of the detailed components. In deflation, the quantity index is obtained by dividing the current-dollar index by an appropriate price index that has the base year--currently 1996--equal to 100 and then by multiplying the result by 100.
The quantity-extrapolation and direct base-year-valuation methods are similar: Both use explicit quantity data. In quantity extrapolation, quantity indexes are obtained by using a quantity indicator to extrapolate from the base-year value of 100 in both directions. In direct base-year valuation, quantity indexes are obtained by multiplying the base-year price by actual quantity data for the index period and then expressing the result as an index with the base year equal to 100.
The subcomponents in table 2 are the same as those shown in table 1, but the detail differs to highlight the alternative methodologies used for calculating the real estimates (see page 34). (12)
Table 1. Principal Source Data and Estimating Methods Used in
Preparing Estimates of Current-Dollar GDP
Annual estimates:
Source data and methods used to
determine level for benchmark
and other years or used to prepare
Component an extrapolator or interpolator
Income side (Gross national income of $10,221.4 billion for 2001)
Nonfarm proprietors' income IVA See the entry for inventory
($0.9 billion) valuation adjustment under
corporate profits.
Nonfarm proprietors' income See the entry "Less: Capital
CCAdj ($86.3 billion) consumption adjustment" under
consumption of fixed capital.
Rental income of persons ($137.9 billion)
Owner-occupied nonfarm housing Benchmark years. Derived as space
($139.6 billion) rent (see entry for nonfarm
dwellings under services in
personal consumption expenditures)
less related expenses, including
property insurance from trade
source; mortgage interest and
property taxes from Census Bureau
decennial survey of residential
finance.
Other years. Same as benchmark
years except that mortgage interest
is based on mortgage debt from the
Federal Reserve Board times a BEA
interest rate and property taxes
from Census Bureau annual surveys
of State and local tax collections
Tenant-occupied non[arm housing Same as owner-occupied nonfarm
($45.4 billion) housing, adjusted to cover only
rental income accruing to persons
not primarily engaged in the
real estate business from Census
Bureau decennial survey of
residential finance.
Farms owned by nonoperator Prepared with farm proprietors'
landlords ($6.8 billion) income; see the entry for farm
proprietors' income with IVA under
proprietors' income.
Nonfarm nonresidential Benchmark years. Nonfarm
properties ($0.9 billion) nonresidential fixed ssets from
BEA capital stock series times a
rate of return on capital based on
IRS tabulations of business tax
returns.
Other years. BEA capital stock
series and judgmental trend.
Royalties ($11.7 billion) All years except the most recent
year. IRS tabulations of royalties
reported on individual income tax
returns.
Most recent year. Judgmental trend.
Capital consumption adjustment See entry for "Less: Capital
(-$66.5 billion) consumption adjustment" under
consumption of fixed capital.
Corporate profits with inventory valuation adjustment (IVA) and capital
consumption adjustment (CCAdj) ($731.6 billion)
Domestic profits before tax All years except the most recent
($519.4 billion) year. Receipts less deductions
from IRS tabulations of business
tax returns, adjusted for
understatement of income on tax
returns and for conceptual
differences.
Most recent year. Profits from
Census Bureau quarterly survey of
corporate profits, regulatory
agency reports, and compilations of
publicly available corporate
financial statements.
Rest-of-the-world profits Estimated as part of the
before tax ($150.8 billion) international transactions
accounts: For direct investment
income, BEA surveys; for
portfolio income, Treasury
Department surveys. Adjusted for
NIPA coverage of U.S. territories
and Puerto Rico; see the entry
for exports and imports of goods
under net exports of goods
and services.
Inventory valuation adjustment The IVA on the income side (for
(IVA) ($5.0 billion) corporations and for nonfarm sole
proprietorships and partnerships)
differs from the IVA on the
product side (see the entry "Change
in private inventories") because
the source data reflect different
proportions of inventories reported
on the basis of different
accounting methods (such as
last-in, first-out (LIFO)). The
income-side IVA is based on the
product-side IVA, adjusted by the
relationship between non-LIFO
inventories from IRS tabulations
of business tax returns and
non-LIFO inventories from the
Census Bureau.
Capital consumption adjustment See the entry "Less: Capital
(CCAdj) ($56.5 billion) consumption adjustment" under
consumption of fixed capital.
Net interest ($649.8 billion)
Domestic monetary interest, net All years except the most recent
($282.3 billion) year. For farm interest paid, USDA
surveys; for residential mortgage
interest paid, Census Bureau
decennial survey of residential
finance and mortgage debt from
the Federal Reserve Board times a
BEA interest rate; for most other
interest paid and received by
business, IRS tabulations of
business tax returns, adjusted for
misreporting on tax returns
and for conceptual differences.
Most recent year. For farm and
mortgage interest paid, same as the
estimates for other years; for
other interest, interest receipts
and payments from regulatory
agencies (such as the Federal
Deposit Insurance Corporation) and
from trade sources or by applying
BEA interest rates to interest-
bearing assets or liabilities from
Federal Reserve Board flow-of-funds
accounts.
Rest-of-the-world monetary Estimated as part of the
interest, net international transactions
(-$104.4 billion) accounts: For direct investment
income, BEA surveys; for portfolio
income, Treasury Department
surveys. Adjusted for NIPA coverage
of U.S. territories and Puerto
Rico; see the entry for exports and
imports of goods under net exports
of goods and services.
Imputed interest
Banks, credit agencies, and Property income earned on investment
investment companies of deposits less monetary
($270.6 billion) interest paid to depositors (and
for mutual depositories, profits
from IRS tabulations of business
tax returns) from annual reports of
regulatory agencies and the Federal
Reserve Board. Imputed interest
(financial services furnished
without payment) is allocated to
persons, government, and to the
rest of the world on the basis of
deposit liabilities from the same
sources.
Life insurance carriers Property income earned and profits
($201.3 billion) from IRS tabulations of business
tax returns, trade sources, and
the Federal Reserve Board.
Business transfer payments All years except the most recent
($42.5 billion) year. Payments to persons for
charitable contributions, IRS
tabulations of business tax
returns; for other components (such
as liability payments for personal
injury), information from
government agency reports and trade
sources; payments to the rest of
the world, estimated as part of
the international transactions
accounts.
Most recent year. Payments to
persons for charitable
contributions and for other
components, judgmental trend.
Indirect business tax and nontax liability ($774.8 billion)
Federal Government For excise taxes, collections from
($110.3 billion) the Bureau of Alcohol, Tobacco,
and Firearms and the IRS; for
customs duties, receipts from the
Monthly Treasury Statement; and
for nontaxes (such as fines),
receipts from OMB's Budget of the
United States.
State and local governments Receipts from Census Bureau
($664.4 billion) quinquennial census and annual
surveys, adjusted to a calendar
year basis from a fiscal year
basis.
Subsidies less current surplus of government enterprises ($47.3 billion)
Federal Government For subsidies, payments by the
($50.3 billion) Commodity Credit Corporation
(CCC) from agency reports and, for
most other agencies, outlays
from the Monthly Treasury
Statement; for current surplus,
mainly reports of various agencies,
such as the Postal Service, and
consumption of fixed capital (CFC)
estimates derived with perpetual-
inventory calculations at current
cost, based on gross investment
and on investment prices.
State and local governments For subsidies, limited to railroad
(-$3.1 billion) and electric power, Census Bureau
annual surveys of expenditures
adjusted to a calendar year basis
from a fiscal year basis and
California administrative records.
For current surplus: For current
operating receipts, mainly revenue
data from Census Bureau annual
surveys of State and local
governments, adjusted to a calendar
year from a fiscal year basis; for
current operating expenditures, see
the entries "Consumption
expenditures and gross investment"
and "Consumption of general
government fixed capital" under
State and local government.
Consumption of fixed capital ($1,329.3 billion)
Government ($222.4 billion)
General government Perpetual-inventory calculations at
($187.7 billion) current cost, based on gross
investment and on investment
prices.
Government enterprise Perpetual-inventory calculations at
($34.8 billion) current cost, based on gross
investment and on investment
prices.
Private ($1,106.8 billion) Perpetual-inventory calculations at
current cost, based on gross
investment and on investment
prices.
Capital consumption All years except the most recent
allowances ($1,168.4 year. For depreciation of
billion) corporations and of nonfarm sole
proprietorships and partnerships,
IRS tabulations of business tax
returns, adjusted for conceptual
differences; for other depreciation
(including for noncorporate
farms, nonprofit institutions, and
owner-occupied housing),
perpetual-inventory calculations
based on investment at acquisition
cost; for accidental damage to
fixed capital, losses reported to
insurance companies and government
agencies.
Most recent year. For depreciation
of corporations and nonfarm sole
proprietorships and partnerships,
BEA estimates of tax-return-based
depreciation; for other
depreciation and accidental damage
to fixed capital, same as above.
Less: Capital consumption For corporations and nonfarm sole
adjustment ($61.6 billion) proprietorships and partnerships,
the difference between
tax-return-based calculations
and perpetual-inventory
calculations; for others
(including noncorporate farms,
nonprofit institutions and
owner-occupied houses), the
difference between
perpetual-inventory
calculations at historical
cost and at current cost.
Advance quarterly estimates:
Source data and methods used
Component to prepare an extrapolator
Income side (Gross national income of $10,221.4 billion for 2001)
Nonfarm proprietors' income IVA
($0.9 billion)
Nonfarm proprietors' income
CCAdj ($86.3 billion)
Rental income of persons ($137.9 billion)
Owner-occupied nonfarm housing For owner-occupied space
($139.6 billion) rent, same the annual
estimates; for depreciation,
interest closing costs, real
estate dealers' commissions,
and taxes, based on
NIPA estimates of those
components; for other expenses,
judgmental trend.
Tenant-occupied non[arm housing Same as the annual estimate.
($45.4 billion)
Farms owned by nonoperator Judgmental trend.
landlords ($6.8 billion)
Nonfarm nonresidential Judgmental trend.
properties ($0.9 billion)
Royalties ($11.7 billion) Judgmental trend.
Capital consumption adjustment
(-$66.5 billion)
Corporate profits with inventory valuation adjustment (IVA)
and capital consumption adjustment (CCAdj) ($731.6 billion)
Domestic profits before tax For some industries in
($519.4 billion) transportation and in finance,
judgmental trend; for others,
same as the annual estimate
for the most recent year.
(Released with the
preliminary estimates of
GDP for the first, second,
and third quarters and the
final estimate for the fourth
quarter.)
Rest-of-the-world profits Same as the annual estimates.
before tax ($150.8 billion) (Released on same schedule
as domestic profits before tax.)
Inventory valuation adjustment Same as the annual estimates.
(IVA) ($5.0 billion)
Capital consumption adjustment
(CCAdj) ($56.5 billion)
Net interest ($649.8 billion) Derived by combining estimates
Domestic monetary interest, net of (1) interest received
($282.3 billion) by persons, (2)
government interest paid
and received, and (3) interest
paid by persons. For (1),
judgmental trend; for (2),
Monthly Treasury Statement
for Federal and judgmental
trend for State and local; for
(3), consumer debt from
the Federal Reserve Board
times BEA estimates of interest
rates.
Rest-of-the-world monetary Same as the annual estimates.
interest, net
(-$104.4 billion)
Imputed interest Judgmental trend.
Banks, credit agencies, and
investment companies
($270.6 billion)
Life insurance carriers Judgmental trend.
($201.3 billion)
Business transfer payments Judgmental trend.
($42.5 billion)
Indirect business tax and nontax liability ($774.8 billion)
Federal Government For most excise taxes, derived
($110.3 billion) from indicators of activity
(such as gasoline
production for gasoline tax);
customs duties, same as
the annual estimates; for
others, judgmental trend.
State and local governments Judgmental trend.
($664.4 billion)
Subsidies less current surplus of government enterprises
($47.3 billion)
Federal Government For subsidies, CCC reports
($50.3 billion) and judgmental trend; for
current surplus, judgmental
trend and CFC estimates
derived the same as the
annual estimates.
State and local governments Judgmental trend and California
(-$3.1 billion) administrative records.
Consumption of fixed capital ($1,329.3 billion)
Government ($222.4 billion)
General government Same as the annual estimates.
($187.7 billion)
Government enterprise Same as the annual estimates.
($34.8 billion)
Private ($1,106.8 billion) Same as the annual estimates.
Capital consumption Judgmental trend.
allowances ($1,168.4
billion)
Less: Capital consumption Judgmental trend.
adjustment ($61.6 billion)
NIPA National income and product account
(1.) Personal consumption expenditures (PCE) for durable and
nondurable goods includes $14.0 billion for food produced and
consumed on farms, standard clothing issued to military
personnel, and used trucks.
(2.) The Census Bureau data for retail sales include sales of
gasoline service stations. The estimates of PCE for gasoline
and oil are derived from the sources listed and are deducted
from the retail-control totals to derive estimates of most
durable and nondurable goods.
(3.) This line item is also referred to as "services furnished
without payment by financial intermediaries except life
insurance carriers."
(4.) Nonresidential structures includes $3.7 billion for
brokers' commissions on sales of structures and net purchases
of used structures.
(5.) Residential investment includes -$0,7 billion for other
structures (dormitories, fraternity and sorority houses, and
nurses' homes) and net purchases of used structures.
(6.) Compensation of employees includes -$6.2 billion for net
wage and salary accruals for the rest of the world and $4.8
billion for supplemental unemployment, directors' fees, and
judicial fees in other labor income.
Table 2. Methodology Used in Preparing Estimates of Real GDP
Deflation, using price based on
Component CPI or PPI Other index
Personal consumption
expenditures
Durable and nondurable goods
Most durable and CPI
nondurable goods except PPI for military
those listed below clothing
New autos CPI
Net purchases of used ...
autos
New trucks CPI
Gasoline and oil CPI
Food furnished to CPI
employees (including
military)
Expenditures abroad by ... Foreign CPI's (1)
U.S. residents less
personal remittances in
kind to nonresidents
Services
Nonfarm dwellings: Space CPI
rent for owner-occupied
dwellings and rent for
tenant-occupied
dwellings
Rental value of farm ...
dwellings
Motor vehicle repair, CPI Composite index of
rental and other PPI, for private input prices from
services; other repair for-profit the Centers for
services; other nursing homes Medicare and
purchased intercity and employment Medicaid Services,
transportation; legal agency fees for private
and funeral services; nonprofit nursing
barber shops, beauty homes; for clubs
parlors, and health and fraternal
clubs; nursing homes; organizations and
laundries; employment for nonprofit
agency fees; accounting research and
and tax return foundation
preparation services; expenses, BEA
recreation (except cable composite indexes
TV, parimutuel net of input prices.
receipts, lotteries, and
computer online
services), hotels and
motels; commercial
business, trade, and
correspondence schools;
educational services not
elsewhere classified;
research organizations
and foundations
Physicians, dentists, and CPI
other professional PPI, for
medical services physicians,
home health
care, and
medical
laboratories
Private nursery schools, ... BEA composite indexes
elementary and secondary of input prices.
schools, day care,
welfare activities,
political organizations,
foundations, and trade
unions and professional
associations
Financial services ... BEA composite index
furnished without of input prices,
payment by banks, credit for investment
agencies, and investment companies' "total
companies (2) deductions."
Brokerage charges and CPI BEA index based on
investment counseling, PPI, for stock revenue per
bank service charges, brokerage passenger mile
intercity transportation charges from DOT and trade
except other and private source and CPI for
higher education airline fares,
for airline
transportation;
for private higher
education, BEA
composite index
of input prices.
Domestic service CPI
Public education and CPI
hospitals, water and PPI, for public
other sanitary services, hospitals
and lotteries
Insurance, private CPI BEA composite
hospitals, religious PPI, private indexes of input
activities, cable TV for-profit prices, for life
electricity, natural hospitals insurance and
gas, telephone, and religious
local transport activities; for
private nonprofit
hospitals,
composite index
of input prices
from the Centers
for Medicare and
Medicaid Services.
Foreign travel by U.S. CPI, for BEA composite index
residents less expenditures of foreign CPI's,
expenditures in the in the (1) for foreign
United States by United States travel; for air
nonresidents fares paid to
foreign carriers,
BLS import price
index; for air
fares paid to U.S.
carriers, BLS
international
price index.
Other services: Motor CPI
vehicle leasing;
parimutuel net receipts;
other housing except
hotels and motels;
tolls; other household
operations except
repairs and insurance;
travel and entertainment
card fees; stenographic
and reproduction
services; money orders
and classified
advertising; and
computer online service
Fixed investment
Nonresidential structures
Utilities PPI, for gas and Cost index from
petroleum trade source, for
pipelines telecommunications;
for railroads, BEA
price index; for
other components,
cost indexes from
trade sources and
government
agencies.
Mining exploration, PPI, for casing, Implicit price
shafts, and wells oil and gas deflator for
well drilling, nonfarm
oil and gas residential
field buildings, for
services, and mines.
geo-physical
exploration
Nonfarm buildings and ... BEA index based on
structures cost index from
trade source and
on Census Bureau
price deflator for
single-family
houses under
construction, for
buildings; for
structures, cost
indexes from
government
agencies.
Farm buildings ... Implicit price
deflator, for
nonfarm
nonresidential
buildings.
Nonresidential equipment and software
Equipment, except autos PPI, for most BLS import price
domestic indexes, for
components and imported components
for imported except
transportation transportation
equipment equipment.
New and used autos CPI, for new ...
autos
Telephone and telegraph ... BEA cost index
installation
Telephone switching ... BEA price index
equipment
Telephone and telegraph ... BEA price index
apparatus
Software PPI, for BEA cost index, BLS
repackaged employment cost
software index, and PPI,
for own-account and
custom software.
Residential investment
Permanent-site new ... Census Bureau price
single-family housing deflator for
units single-family
houses under
construction.
Permanent-site new ... BEA price index
single-family housing
units
Manufactured homes PPI
Improvements ... BEA composite index
of input prices,
for major
replacements; for
additions and
alterations, BEA
index based on
Census Bureau
price deflator for
single-family
houses under
construction and
BEA index for major
replacements.
Brokers' commissions PPI
Equipment CPI
Change in private inventories
Nonfarm
Purchased goods of all PPI Composite price from
industries the Energy
Information
Administration
(EIA), for crude
petroleum; BLS
import price
indexes, for
imported goods
purchased by trade
industries.
Work-in-process and PPI BEA indexes of unit
finished goods of labor cost
manufacturing
Farm ... USDA average market
prices
Net exports of goods and
services (3)
Exports and imports of PPI, for gold; BLS export and import
goods (3) semiconductor price indexes; for
exports, electric energy
selected exports and imports
transportation and for petroleum
equipment; imports, unit-value
selected indexes based on
agricultural Census Bureau
foods, feeds, values and
and beverages quantities.
and selected
imports of
refined
petroleum
Exports and imports of CPI, for travel Selected deflators,
services (3) receipts, for military
medical transfers and
receipts, and defense
nonresident expenditures; see
students' "National defense,
expenditures Except consumption
PPI, for of general
selected other government fixed
transportation capital" below.
BLS export and import
price indexes, for
passenger fares;
BEA composite index
of foreign CPI's,
(1) for travel
payments for
miscellaneous
services and U.S.
students'
expenditures
abroad; BLS export
and import price
indexes, for
selected other
transportation; and
for royalties and
fees and for other
private services,
BEA price indexes,
CPI, PPI, and
implicit price
deflator for final
sales to domestic
purchasers.
Government consumption expenditures and gross investment
Federal Government
National defense except PPI, for BEA indexes based on
consumption of general selected goods DOD prices paid,
government fixed capital and services for some goods and
CPI and PPI, for services and for
utilities and most military
communications structures; for
some services, BLS
employment cost
indexes; for
nonmilitary
structures, cost
indexes from trade
sources and
government
agencies; for
own-account
software, BEA index
derived from
nondefense
compensation; for
custom software,
BEA index derived
from nondefense
compensation price
index and PPI.
National defense ... ...
consumption of general
government fixed capital
Nondefense except PPI, for most Cost indexes from
consumption of general goods and trade sources and
government fixed capital selected government
services agencies, for
CPI, for rent, structures; for
utilities, and some services,
communications BLS employment
cost indexes;
for own-account
software, BEA
index derived
from nondefense
compensation; for
custom software,
BEA index derived
from nondefense
compensation price
index and PPI.
Nondefense consumption of ... ...
general government
fixed capital
State and local government
Consumption expenditures CPI for services BEA indexes based on
and gross investment PPI for Federal nondefense
except those items electricity, prices paid, for
listed below hospitals, transportation,
most books, and postal
professional services; for
services, and elementary and
goods secondary
education, welfare
and libraries, BEA
composite indexes
of input prices;
for maintenance and
repair services,
BEA composite price
index for State and
local construction.
Compensation of general ... ...
government employees,
except own-account
investment
Consumption of general ... ...
government fixed capital
Structures ... Cost indexes from
trade sources and
government
agencies.
Software ... See the entry for
software under
non-residential
equipment and
software.
Brokerage charges and ... ...
financial services
furnished without
payment
Using quantity for
Component extrapolation or direct valuation
Personal consumption
expenditures
Durable and nondurable goods
Most durable and
nondurable goods except
those listed below
New autos
Net purchases of used Direct valuation. For used autos, in
autos two parts: (1) Margin, unit sales
from trade sources with dealers'
margins from Census Bureau and trade
sources; (2) net transactions, net
change in unit stock of autos held
by consumers by year of original
sale, valued by depreciated original
value in base-year dollars.
New trucks
Gasoline and oil
Food furnished to
employees (including
military)
Expenditures abroad by
U.S. residents less
personal remittances in
kind to nonresidents
Services
Nonfarm dwellings: Space
rent for owner-occupied
dwellings and rent for
tenant-occupied
dwellings
Rental value of farm Extrapolation. BEA value of farm
dwellings housing stock derived from USDA
data on capital expenditures,
depreciation, and farm dwelling
construction costs.
Motor vehicle repair,
rental and other
services; other repair
services; other
purchased intercity
transportation; legal
and funeral services;
barber shops, beauty
parlors, and health
clubs; nursing homes;
laundries; employment
agency fees; accounting
and tax return
preparation services;
recreation (except cable
TV, parimutuel net
receipts, lotteries, and
computer online
services), hotels and
motels; commercial
business, trade, and
correspondence schools;
educational services not
elsewhere classified;
research organizations
and foundations
Physicians, dentists, and
other professional
medical services
Private nursery schools,
elementary and secondary
schools, day care,
welfare activities,
political organizations,
foundations, and trade
unions and professional
associations
Financial services Extrapolation. For banks, BLS index
furnished without of total output (less BEA real
payment by banks, credit bank service charges); for credit
agencies, and investment agencies, paid employee hours of
companies (2) relevant financial institutions;
for investment companies' "implicit
charges," BEA orders derived from
volume data from trade sources.
Brokerage charges and Extrapolation. For mutual fund sales
investment counseling, charges, value of new sales deflated
bank service charges, by CPI.
intercity transportation
except other and private
higher education
Domestic service
Public education and
hospitals, water and
other sanitary services,
and lotteries
Insurance, private Extrapolation. For auto insurance,
hospitals, religious premiums deflated by CPI; for medical
activities, cable TV care and hospitalization insurance,
electricity, natural benefits deflated by CPI; for
gas, telephone, and workers' compensation, premiums
local transport deflated by PPI.
Foreign travel by U.S.
residents less
expenditures in the
United States by
nonresidents
Other services: Motor Extrapolation. For parimutuel net
vehicle leasing; receipts, gross winnings deflated
parimutuel net receipts; by CPI.
other housing except
hotels and motels;
tolls; other household
operations except
repairs and insurance;
travel and entertainment
card fees; stenographic
and reproduction
services; money orders
and classified
advertising; and
computer online service
Fixed investment
Nonresidential structures
Utilities
Mining exploration, Extrapolation. For drilling, footage by
shafts, and wells geographic area from trade source.
Nonfarm buildings and
structures
Farm buildings
Nonresidential equipment and
software
Equipment, except autos
New and used autos Direct valuation. For used autos, see
the entry "Net purchases of used
autos" under durable and nondurable
goods.
Telephone and telegraph
installation
Telephone switching
equipment
Telephone and telegraph
apparatus
Software
Residential investment
Permanent-site new
single-family housing
units
Permanent-site new
single-family housing
units
Manufactured homes
Improvements
Brokers' commissions
Equipment
Change in private inventories
Nonfarm
Purchased goods of all Direct valuation. Quantities
industries and prices of stocks of coal,
petroleum, and natural gas for
utilities from the EIA.
Work-in-process and
finished goods of
manufacturing
Farm
Net exports of goods and
services (3)
Exports and imports of
goods (3)
Exports and imports of Extrapolation. For exports of financial
services (3) services furnished without payment,
(2) BLS index of total bank output
(less BEA real bank service charges).
Government consumption
expenditures and gross
investment
Federal Government
National defense except Extrapolation. For military
consumption of general compensation, full-time equivalent
government fixed capital employment by rank and length of
service; for civilian compensation,
full-time equivalent employment by
grade, adjusted for change from
base year in hours worked.
Direct valuation. For some goods
and services and a few military
structures, quantities and prices
from DOD reports; for electricity
and natural gas, quantities from
the DOE.
National defense Direct valuation. Perpetual-inventory
consumption of general calculations based on gross
government fixed capital investment.
Nondefense except Extrapolation. For compensation,
consumption of general full-time equivalent employment by
government fixed capital grade and adjusted for change from
base year in hours worked; for
financial services furnished without
payment, (1) BLS index of total bank
output (less BEA real bank service
charges).
Direct valuation. For net purchases
of agricultural commodities by the
CCC, quantities by crop from agency
reports and USDA prices; for
selected petroleum transactions,
DOE quantities and prices.
Nondefense consumption of Direct valuation. Perpetual-inventory
general government calculations based on gross
fixed capital investment.
State and local government
Consumption expenditures
and gross investment
except those items
listed below
Compensation of general Extrapolation. For employees in
government employees, education, full-time equivalent
except own-account employment by education and
investment experience, adjusted for change
from base year in hours worked;
for other employees, full-time
equivalent employment adjusted
for the change from base year
Consumption of general Direct valuation. Perpetual-inventory
government fixed capital calculations based on gross
investment.
Structures
Software
Brokerage charges and Extrapolation. See the entries for
financial services brokerage charges and for financial
furnished without services under personal consumption
payment expenditures for services.
BLS Bureau of Labor Statistics
CPI Consumer price index
DOE Department of Energy
DOT Department of Transportation
PPI Producer price index
USDA U.S. Department of Agriculture
(1.) The foreign CPI's have been adjusted for differences in exchange
rates.
(2.) Also referred to as "services furnished without payment by
financial intermediaries, except life insurance carriers."
(3.) Real net receipts of income from the rest of the world--the
difference between rear GDP and real gross national product--is
prepared using the implicit price deflator for final sales to
domestic purchasers; imputed interest paid to nonresidents is
extrapolated by the BLS index of total bank output (less BEA real
bank service charges).
(1.) BEA has prepared a series of papers that provide detailed descriptions of NIPA concepts and methodologies and that are subject to periodic improvements, which are typically introduced as part of annual and comprehensive revisions; these improvements are described in the articles in the SURVEY OF CURRENT BUSINESS that cover these revisions. For more information, see appendix B at the back of this issue.
(2.) Eugene P. Seskin and Stephanie H. McCulla, "Annual Revision of the National Income and Product Accounts," SURVEY 82 (August 2002): 7-34.
(3.) For additional details on the release schedule for the NIPA estimates, go to BEA's Web site at <www.bea.gov>, click on "Methodologies," and under "National programs," see "A Guide to the NIPA's."
(4.) For a few components, the final quarterly estimates are based on newly available source data that replace judgmental trends.
(5.) For additional information on the commodity-flow method, see U.S. Bureau of Economic Analysis, Personal Consumption Expenditures, Methodology Paper No. 6 (Washington, DC: U.S. Government Printing Office, 1990): 31-34 and GNP: An Overview of Source Data and Estimating Methods, Methodology Paper No. 4 (Washington, DC: GPO, 1987): 16-17.
(6.) For additional information, see Personal Consumption Expenditures, 41-54; and GNP: An Overview, 17.
(7.) For additional information on the perpetual-inventory method, see U.S. Bureau of Economic Analysis, Fixed Reproducible Tangible Wealth in the United States, 1925-94 (Washington, DC: GPO, August 1999): M-3--M-36; and GNP: An Overview, 17-18.
(8.) For additional information and an example of the fiscal year analysis method, see U.S. Bureau of Economic Analysis, Government Transactions, Methodology Paper No. 5 (Washington, DC: GPO, 1988): 19-20.
(9.) See U.S. Bureau of Economic Analysis, The Balance of Payments of the United States: Concepts, Data Sources, and Estimating Procedures (Washington, DC GPO, 1990). The methodologies described in this publication are subject to periodic improvements, which are typically introduced as part of the annual revision of the ITA's; these improvements are described in the SURVEY articles that cover the annual ITA revisions, most recently in Christopher L. Bach, "Annual Revision of the U.S. International Transactions Accounts, 1993-2001," SURVEY 82 (July 2002): 33-10.
(10.) These adjustments are described in U.S. Bureau of Economic Analysis, Foreign Transactions, Methodology Paper No. 3 (Washington, DC: GPO, 1987): 15-25.
(11.) For additional information on the calculation of real GDP, go to BEA's Web site at <www.bea.gov>, click on "Methodologies," and under "National programs," see "A Guide to the NIPA's."
(12.) For the real estimates, the distinction between annual and quarterly methodologies is far less important than it is for the current-dollar estimates. For the relatively few cases in which the annual and quarterly source data differ, the major differences are noted in the entry.
COPYRIGHT 2002 U.S. Government Printing Office
COPYRIGHT 2004 Gale Group
Get Skiing &Snowboarding Packages. - Sponsored Link
Ad - View Package Specials &Book Now!
|
