Glossary

A specific form of the use table, where each commodity in the table is divided by total industry output to create a coefficient value.

An account is a tool which records, for a given aspect of economic life, (a) the uses and resources or (b) the changes in assets and the changes in liabilities and/or (c) the stock of assets and liabilities existing at a certain time; the transactions accounts include a balancing item which is used to equate the two sides of the accounts (e.g. resources and uses) and which is a meaningful measure of economic performance in itself. (SNA)

Accumulation accounts are flow accounts that record the acquisition and disposal of financial and non-financial assets and liabilities by institutional units through transactions or as a result of other events. (SNA)

A grouping of one or more Events that represents a related spending change within the Study Area. Six types of Activities are available, falling into three main categories: production by industry (Industry, Construction, Retail), production of goods & services (Commodity), and institutional spending. (Household, Labor Income).

A multiple applied to all Event values within an Activity, which reflects the number of times the Event value is repeated to create the final demand change.

The combining of detailed subgroups to form a larger group. For example, detailed I-O items are aggregated to I-O commodities, and detailed industries are aggregated to summary industries and sectors for publication. (BEA)

Aggregation bias stems from the loss of detail that occurs when you aggregate a region’s sectors before generating the multipliers. Multipliers are derived from output per worker averages, other value-added ratios, and the production functions of industries. When you aggregate a region’s industries before generating multipliers, it has the effect of taking several individual Industries and combining them to form a totally new Industry. The production function and relationships of the new aggregated Industry becomes the weighted average of the individual production functions, with those industries with the greatest output levels having the greatest influence on the aggregated industry. Therefore, the new Industry’s production function may not truly represent an industry being impacted. This creates aggregation-induced error, or bias. Thus, it is typically recommended to aggregate the impact results rather than the model itself. However, aggregating IMPLAN Sectors in a model can be useful for those who do not have specific Sector detail for their numbers or are working with a standard NAICS aggregation for their input data.

The allocation of primary income account focuses on resident institutional units or sectors in their capacity as recipients of primary incomes rather than as producers whose activities generate primary incomes; it lists two kinds of income under “resources”: (a) primary incomes already recorded in the generation of income account that are receivable by resident institutional units, and (b) property incomes receivable from the ownership of financial or tangible non-produced assets (mainly land or sub-soil assets). (SNA)

Process of splitting or parsing an impact analysis issue into smaller and more specific parts

An ancillary activity is a supporting activity undertaken within an enterprise in order to create the conditions within which the principal or secondary activities can be carried out; ancillary activities generally produce services that are commonly found as inputs into almost any kind of productive activity and the value of an individual ancillary activity’s output is likely to be small compared with the other activities of the enterprise (e.g. cleaning and maintenance of buildings). (SNA)

An ancillary corporation is a subsidiary corporation, wholly owned by a parent corporation, whose productive activities are ancillary in nature: that is, they are strictly confined to providing services to the parent corporation, or other ancillary corporations owned by the same parent corporation. (SNA)

Assets are entities functioning as stores of value and over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realised by disposing of the asset or terminating it). (SNA)

Auxiliaries are establishments whose employees are primarily engaged in providing various management or support services to one or more establishments of the same enterprise. Thus, within an enterprise, the auxiliary establishments are distinct from those establishments that are primarily engaged in producing goods and from those that are primarily engaged in providing services for personal or household use or for other enterprises. For example, an automotive repair shop or storage garage operated by an enterprise primarily for repair or storage of its own vehicles qualifies as an auxiliary. In addition to its primary activity of supporting the operations of the enterprise, an auxiliary may also provide services to the general public or to other business firms as a secondary activity. One major change introduced by NAICS is that auxiliaries are now treated as establishments classified by their production processes. Central Administrative Offices (CAOs) are included in NAICS 55, Management of Companies and Enterprises. Certain other auxiliaries are now treated as part of the industry that has a similar production function. For example, an accounting department that is a separate establishment would now be included in the accounting services industry. The services provided by auxiliaries are now included in output, measured by expenses to provide those services. Under the SIC, the services provided by auxiliary establishments were not included in output, and their expenses were included with the expenses of the industry served by the auxiliary. (BEA)

The interconnection of an industry to other industries from which it purchases its inputs in order to produce its output. It is measured as the proportion of intermediate consumption to the total output of the sector (direct backward linkage) or to the total output multiplier (total backward linkage). An industry has significant backward linkages when its production of output requires substantial intermediate inputs from many other industries. (BEA)

The balance of payments is a statistical statement that systematically summarises, for a specific time period, the economic transactions of an economy with the rest of the world. (SNA)

BEA: Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).

The complete set of Social Accounts, where commodity production is equal to commodity use for each commodity, and industry output is equal to industry outlay for each industry.

The period that provides the weights for an index is described as the base period. (SNA)

BEA: The period from which the weights for a measurement series are derived. The national income and product accounts (NIPAs) currently use the year 2000 as the base period. Related terms: Chained-dollar estimate, Laspeyres price index, Paasche price index.         

BLS: A point in time used as a reference point for comparison with some later period.

The first in a series of years in an economic of financial index. A base year is normally set to an arbitrary level of 100. Any year can be chosen as a base year, but typically recent years are chosen. New, more up-to-date base years are periodically introduced to keep data current in a particular index. 

Also \"basic value\". The price received by the producer for goods or services that are sold. It excludes taxes collected by the producer from purchasers, such as taxes that liquor manufacturers collect on behalf of government and sales taxes collected by retailers. In the I-O tables prepared by BEA, basic prices have excluded subsidies and included duties on imports. The 1993 System of National Accounts expands this definition to include subsidies. (See “Basic value tables.”) (BEA)

An alternative presentation of the I-O accounts recommended by the 1993 System of National Accounts. The basic value tables consist of a supply table and a use table. Industry and commodity output are measured in “basic value,” which excludes commodity taxes and duties but includes subsidies. The supply table is a variation of the make table; it is transposed from the make table and includes imports, thus enabling the calculation of supply. The use table shows transactions in purchasers’ value, and value added includes subsidies and excludes sales and excise taxes collected by the industry on behalf of government. (BEA)

One of the major elements of the U.S. national and industry economic accounts. They provide detailed statistics on economic processes and relationships, and they provide essential information for other economic accounts. They are used to set the level of GDP in the NIPAs, and they provide commodity detail on the composition of the final-use categories. In addition, they provide information on what industries use to produce their output and on what commodities are produced by each industry. The benchmark I-O accounts consist of make tables, use tables, and direct and total requirements tables. They are prepared at about 5-year intervals, primarily from Economic Census data. (BEA)

BEA: Statistical description–presented in a make table, use table, direct requirements table, and total requirements tables–of the production of goods and services and the transaction flows of goods and services between different industries and to different components of final uses. These accounts are prepared every five years, coinciding with economic census years. Related terms: Annual input-output (I-O) accounts, Input-output (I-O) accounts.         

Two tables, one for personal consumption expenditures and one for private equipment and software, that show the relationships between categories of expenditures in the I-O accounts and those in the NIPAs. The bridge tables enable analysts to use the commodity-composition relationships shown in the benchmark I-O tables to prepare estimates for non-benchmark years. (BEA)

A secondary product obtained in the production process of a principal product. Although it is produced incidentally, it does represent a source of revenue. 

A specialized form of the Make Table derived by dividing each element by the Make Table row totals to create a coefficient value.

The designation applied to all goods used in the production of other goods, including plants and machinery. It is one of the three major factors of production, the other two being land and labor. 

See “Consumption of fixed capital”. (SNA)

Private capital consumption allowances less private consumption of fixed capital (defined below). This adjustment is used to convert income and depreciation measures from the historical-cost accounting used by firms when filing their income tax returns to the current replacement cost basis with consistent service lives and empirically based depreciation schedules. (BEA)

BEA: The difference between private capital consumption allowances (CCA) and private consumption of fixed capital (CFC).

Consists largely of tax-return-based depreciation charges for corporations and nonfarm proprietorships and of historical-cost depreciation (calculated by BEA, using consistent service lives and empirically based depreciation schedules) for farm proprietorships and partnerships and other private business. (BEA)

BEA: Consists of tax-return-based depreciation charges for corporations and nonfarm proprietorships and of historical-cost depreciation (calculated by BEA) for farm proprietorships, rental income of persons, and nonprofit institutions. Related terms: Capital consumption adjustment (CCAdj), (private), Consumption of fixed capital (CFC).         

Table that expands the gross private fixed investment component of the I-O use table to show the types of new equipment and structures purchased for use by each industry. Because the capital flow table shows the industry using the capital rather than owning the capital, leased equipment generally appears in the industry leasing the equipment rather than in the industry that owns the equipment. Rental equipment (generally short term) is recorded as being used by the equipment rental industry. (BEA)

BEA: Table that expands the fixed investment component of the input-output (I-O) use table to show the types of new equipment, new structures, and software used by each industry. Related terms: Input-output (I-O) accounts.

See “gross capital formation”. (SNA)

Positive or negative capital gains may accrue during the accounting period to the owners of financial and non-financial assets and liabilities as a result of a change in their prices (holding gains are sometimes referred to as “holding gains”). (SNA)

(See “Auxiliaries.”) (BEA)

A coefficient (input-output) table records the amount of each product (or the amount of output by each industry) used as input per unit of output of the various products/industries. (SNA)

A commodity is a product or service. It may be produced by one or by many industries. Commodity output represents the total output of the product or service, regardless of the industry that produced it. If an industry and the commodity produced by the industry have the same name, the commodity is considered to be the primary product of that industry. Any other commodity produced by that industry is a secondary product of that industry. (BEA)

The Commodity Activity type can be activated by turning on the Advanced User setting in User Preferences. Commodity Activity types measure changes in Commodity production across all Industries that produce the Commodity as a primary product or a byproduct.

Taxes that are collected directly from purchasers by industries on behalf of government. They include most sales and excise taxes. Commodity taxes are part of commodity output and are included in the producers’ value of transactions. Most commodity taxes are collected by wholesalers and retailers. (BEA)

By this assumption, the production of each commodity requires a unique set of inputs no matter which industry produces that commodity. This assumption provides the basis for the redefinition of secondary products in the I-O accounts, whereby the secondary product and its associated inputs are redefined from the industry that produced it to the industry in which it is the primary product. See also Handbook of Input-Output Table Compilation and Analysis, Studies in Methods, Handbook of National Accounting, Series F, No. 74, (New York: United Nations, 1999): 91. (BEA)

A technique used to estimate purchases of an item by intermediate or final users when primary data are not available. The method generally begins with an estimate of the total supply of an item available for domestic uses; it then either attributes a fixed percentage of supply to an intermediate or final user, or it adjusts for other purchases and attributes the residual to intermediate or final users. Commodity-flow estimates are always calculated in basic prices. (BEA)

The inflow of residents from outside the Study Area who are employed by firms in the Study Area (in-commuting), or the outflow of residents in the SA employed by firms outside of it. These values can be viewed in the Social Accounting Matrix as entries in household receipts from exports (net out-commuting), or as labor income payments to imports (net in-commuting).

Compensation of employees is the total remuneration, in cash or in kind, payable by enterprises to employees in return for work done by the latter during the accounting period. (SNA) See Employee Compensation.

A table that relates data based on two different classifications systems. For example, foreign trade harmonized codes for merchandise are matched to I-O commodity or item codes. (BEA)

One of the three fundamental principles underlying the I-O accounts. Under this principle, the data compiled from one source are comparable with the data compiled from another source. For example, in accordance with this principle, the estimates shown in the I-O accounts should be consistent with the underlying source data and with the estimates shown in the national accounts. In the United States, NAICS provides a consistent basis for classification that enables comparisons across the broad range of economic statistics. The other two principles are homogeneity and proportionality. (BEA)

Constant prices are obtained by directly factoring changes over time in the values of flows or stocks of goods and services into two components reflecting changes in the prices of the goods and services concerned and changes in their volumes (i.e. changes in “constant price terms”). (SNA)

Consumer durables are durable goods acquired by households for final consumption (i.e. those that are not used by households as stores of value or by unincorporated enterprises owned by households for purposes of production); they may be used for purposes of consumption repeatedly or continuously over a period of a year or more. (SNA)

Consumption is an activity in which institutional units use up goods or services; consumption can be either intermediate or final. (SNA)

A consumption good or service is one that is used (without further transformation in production) by households, NPISHs or government units for the direct satisfaction of individual needs or wants or the collective needs of members of the community. (SNA)

Consumption of fixed capital represents the reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage. (SNA)

BEA: The charge for the using up of private and government fixed capital located in the United States. It is the decline in the value of the stock of fixed assets due to wear and tear, obsolescence, accidental damage, and aging. For general government and for nonprofit institutions that primarily serve individuals, CFC serves as a measure of the value of the current services of the fixed assets owned and used by these entities. Related terms: Capital consumption adjustment (CCAdj), (private), Capital consumption allowance (CCA), (private).         

A corporation is a legal entity, created for the purpose of producing goods or services for the market, that may be a source of profit or other financial gain to its owner(s); it is collectively owned by shareholders who have the authority to appoint directors responsible for its general management. (SNA)

Even when associated industry Sectors exist in the region, commodities may be sourced outside the region due to corporate contracts, discounts and deals, or for other reasons 

Current accounts record the production of goods and services, the generation of incomes by production, the subsequent distribution and redistribution of incomes among institutional units, and the use of incomes for purposes of consumption or saving. (SNA)

(BEA) Current account (international). Record of transactions in goods, services, income, and unilateral current transfers between residents and nonresidents. Related terms: Balance of payments, Capital account (international), Financial account (international).         

Depreciation as usually calculated in business accounts is a method of allocating the costs of past expenditures on fixed assets over subsequent accounting periods; note that the depreciation methods favoured in business accounting and those prescribed by tax authorities almost invariably deviate from the concept of consumption of fixed capital employed in the SNA and so the term “consumption of fixed capital” is used in the SNA to distinguish it from “depreciation” as typically measured in business accounts. (SNA)

The amount of outlay for any given industry used for purchase of goods and services from each industry sector modeled.

Specifically, the direct effect is the value applied to the multipliers. Generally, it is a series (or single) of production changes or expenditures made by producers/consumers as a result of an activity or policy. These initial changes are determined by an analyst to be a result of this activity or policy. Applying these initial changes to the multipliers in an IMPLAN model will then display how the region will respond, economically to these initial changes.

The set of expenditures applied to the predictive model (i.e., I/O multipliers) for impact analysis. It is a series (or single) of production changes or expenditures made by producers/consumers as a result of an activity or policy. These initial changes are determined by an analyst to be a result of this activity or policy. Applying these initial changes to the multipliers in an IMPLAN model will then display how the region will respond, economically to these initial changes.

shows the value entered into the Labor Income Value field, of the Labor Income Activity type, that is used to generate the displayed Induced effects

shows us the value that leaks out of the model as a result of institutional contributions to production

The commodity-by-industry direct requirements table is derived from the use table by relating commodity inputs used by an industry to the industrys output. The values in this table, referred to as \"direct requirements coefficients,\" are in ratio format and show the dollar amount of a commodity required directly by an industry to produce a dollar of the industrys output. (BEA)

The disclosure symbol (D) is used by the Census Bureau, BEA, and other organizations in their tables to denote that data have been suppressed to avoid disclosure of proprietary data for a company. The suppressed data are included in the totals that are shown for higher level aggregates. (BEA)

The income that individuals retain after they have deducted personal taxes, including income taxes, estate and gift taxes, personal property taxes, poll taxes and automobile use taxes, and have paid to government other noncommercial fees. It is the concept closest to what is commonly known as take-home pay. It is the amount which individuals can use either to make personal outlays or to save.

The distribution and use of income accounts consist of a set of articulated accounts showing how incomes are: (a) generated by production; (b) along with property income, distributed to institutional units with claims on the value added created by production; (c) redistributed among institutional units, mainly by government units through social security contributions and benefits and taxes; and (d) eventually used by households, government units or non-profit institutions serving households (NPISHs) for purposes of final consumption or saving. (SNA)

Distributive transactions consist of transactions by which the value added generated by production is distributed to labour, capital and government and of transactions involving the redistribution of income and wealth (taxes on income and wealth and other transfers). (SNA)

The Customs value of imports as appraised by U.S. Customs and Border Protection when entering the United States. It is the price actually paid or payable for merchandise when it is sold for exportation to the United States (that is, the foreign port value) plus insurance costs, freight costs of transporting the commodity to the United States, and any applicable duties. The domestic port value is roughly equivalent to the basic value that is used to value domestic production. (BEA)

Domestic supply is both a NIPA and an industry accounts term. In the NIPAs and in the pre-1997 benchmark I-O accounts, it represents the value of the commodity produced by domestic firms (valued at producers prices) plus imports, transportation costs, and wholesale margin, minus exports and inventory change. Beginning with the 1997 benchmark I-O accounts and in the annual I-O accounts, it represents the value of the commodity produced by domestic firms (valued at basic prices) plus imports and sales from final uses, minus exports and inventory change. It does not include commodity taxes, transportation costs, and wholesale margin. (BEA)

For a unit or sector, national accounting is based on the principle of double entry, as in business accounting , whereby each transaction must be recorded twice, once as a resource (or a change in liabilities) and once as a use (or a change in assets). (SNA)

Dummy industries are used to simplify the process of estimating transactions (that is, inputs of commodities used by industries and final users) by grouping related items that are generally assumed to be purchased in the same proportion by many different industries. Purchases of these related items are consolidated under one dummy industry, rather than being treated as purchases of individual items. Then, before the I-O table is balanced, weights can be calculated for every item in the dummy industry, and these weights applied to every purchase of the dummy commodity in order to break out these purchases into their component items. For example, office supplies are used by all industries, and some data exist for the value of office supplies purchased by industries. The purchases of office supply items—paper, pens, staples, etc.—are consolidated, and shown as purchased by the dummy industry “office supplies” and other industries are shown buying the dummy commodity “office supplies” rather than the individual office supply items. (BEA)

A durable good is one which may be used repeatedly or continuously over a period of more than a year, assuming a normal or average rate of physical usage. (SNA)

BEA: Tangible products that can be stored or inventoried and that have an average life of at least three years. Related terms: Nondurable goods, Services, Structures.         

I-O ratios that measure earnings paid to households by employment throughout the economy, directly and indirectly, in connection with delivery of $1 million of final demand for a specific commodity. (BEA)

Provides a detailed portrait of the nations economy once every 5 years, from the national to the local level. The basic statistics collected cover nearly all of the U.S. economy except agriculture and government, which are covered by concurrent economic censuses. Several related programs collect additional statistics, including those on minority- and women-owned businesses. The Economic Census is conducted largely by the Census Bureau; the Census of Agriculture is conducted by the U.S. Department of Agriculture. The Economic Census for 1997 compiled and published data primarily on a NAICS basis for the first time. (BEA)

Economic flows reflect the creation, transformation, exchange, transfer or extinction of economic value; they involve changes in the volume, composition, or value of an institutional unit’s assets and liabilities. (SNA)

Process that traces how changes in spending resulting from an economic impact. These processes measure the cumulative effect of that spending on a defined region. 

Economic production is an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services. (SNA)

Economically active persons are persons engaged in production included within the boundary of production. (SNA)

An employee is a person who enters an agreement, which may be formal or informal, with an enterprise to work for the enterprise in return for remuneration in cash or in kind. (SNA)

Employees’ social contributions are the amounts payable by employees to social security funds and private funded social insurance schemes. (SNA)

Employers’ actual social contributions are the amounts payable by employers for the benefit of their employees to social security funds, insurance enterprises, autonomous pension funds or other institutional units responsible for the administration and management of social insurance schemes. (SNA)

Employers’ social contributions are payments by employers which are intended to secure for their employees the entitlement to social benefits should certain events occur, or certain circumstances exist, that may adversely affect their employees’ income or welfare - sickness, accidents, redundancy, retirement, etc. (SNA)

IMPLAN Employment includes full-time, part-time, and seasonal workers based on annual average employment

Additional I-O tables that expand the use table by breaking down the compensation component of value added. For each industry, employee compensation is separated into wages and salaries and supplements to wages and salaries. The tables also provide data on employment. The last employment table was published for the 1977 I-O accounts. (BEA)

I-O multipliers used to estimate the total number of jobs (both full-time and part-time) throughout the economy that are needed, directly and indirectly, to deliver $1 million of final demand for a specific commodity. (BEA)

A business or membership organization consisting of one or more establishments under common, direct or indirect, ownership or control. An enterprise may vary in composition, ranging from a single establishment company (for example, corporation, partnership, etc.) to a complex family of parent and subsidiary companies (or firms) under common ownership or control. (BEA) An enterprise is an institutional unit in its capacity as a producer of goods and services; an enterprise may be a corporation, a quasi-corporation, a non-profit institution, or an unincorporated enterprise. (SNA)

An economic unit—business or industrial—at a single physical location where business is conducted or where services or industrial operations are performed. Examples include a factory, mill, store, hotel, movie theater, mine, farm, ranch, bank, railroad depot, airline terminal, sales office, warehouse, or central administrative office. One or more establishments make up an enterprise or a company. However, a single establishment may be comprised of subunits, departments, or divisions. In the industry classification systems—SIC and NAICS— the establishment is the basic unit for collecting many types of economic information. (BEA) An establishment is an enterprise, or part of an enterprise, that is situated in a single location and in which only a single (non-ancillary) productive activity is carried out or in which the principal productive activity accounts for most of the value added. (SNA)

BEA: An economic unit–business or industrial–at a single geographic location, where business is conducted or where services or industrial operations are performed. An establishment is not necessarily identical to an enterprise or company, which may consist of one or more establishments.

A subset of an Activity, an Event shows the change in production of an industry or commodity, as a dollar value change in final demand.

The year that changes in Final Demand occur. The default setting for the program is the current data year.

Excise duties consist of special taxes levied on specific kinds of goods, typically alcoholic beverages, tobacco and fuels; they may be imposed at any stage of production or distribution and are usually assessed by reference to the weight or strength or quantity of the product. (SNA)

Taxes that are levied by the Federal Government on the manufacture, sale, or consumption of specific items, usually on a per-unit basis rather than a percentage basis. For example, cigarettes are taxed by the pack or carton, alcoholic beverages are taxed by the bottle, and gasoline is taxed by the gallon. Excise taxes are a type of commodity tax. (BEA)

Expenditures are the values of the amounts that buyers pay, or agree to pay, to sellers in exchange for goods or services that sellers provide to them or to other institutional units designated by the buyers. (SNA)

Expenditures on goods and services produced on own account are the imputed values of goods or services produced as outputs of unincorporated enterprises owned by households that are retained for consumption by members of the household. (SNA)

A component of final uses that measures goods and services that are produced in the United States and sold to the foreign sector. They are valued at f.a.s. (free alongside ship), which is equivalent to purchasers’ value at the U.S. port of export. The definition of exports in the U.S. international transactions accounts differs slightly from that in the NIPAs and I-O accounts, primarily in the treatment of trade in nonmonetary gold and of trade involving U.S. territories. (BEA) Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents; (SNA)

BLS: A domestic good or service that is sold to a foreign resident from a U.S. resident. Exports include government and nongovernment goods and services; however they exclude goods and services sold to the U.S. military and diplomatic and consular institutions abroad. Exports do include goods and services that were previously imported.

Gross value added at factor cost is not a concept used explicitly in the SNA but it can easily be derived by subtracting the value of any taxes, less subsidies, on production payable out of gross value added. (SNA)

Also known as Factor Payments. These are payments to primary factors of production (e.g., wages to employees and rents to landowners). There two main categories are: employee compensation and proprietor income.

BEA: Labor and property earnings from current production. In national income, it is the incomes accruing to labor and property of U.S. residents, which include compensation of employees (received), proprietors' income, rental income of persons, and corporate profits.       

of Factors Include: Employee Compensation, Proprietors’ Income and Other Property Income

The value of goods & services produced and sold to final users (institutions) during the calendar year. This value is also equivalent to the Direct Effect of the impact.

BEA: Demand of final uses

The final use quadrant (of the “use table” in an input-output system) shows exports, final consumption expenditure and gross capital formation at purchasers’ prices in the columns each classified by products in the rows. (SNA)

The consumption of the goods and services that are produced and distributed in the economy. In the I-O accounts, final-use transactions consist of the transactions that make up the final-expenditure components of GDP: Personal consumption expenditures; private fixed investment; change in private inventories; exports of goods and services; imports of goods and services; and Federal, state, and local government consumption expenditures and gross investment (including investment by government enterprises). (BEA)

BEA: Final-demand components for goods and services, which consist of personal consumption expenditures (PCE); gross private fixed investment; change in private inventories; exports of goods and services; imports of goods and services, and government consumption expenditures and gross investment. Related terms: Input-output (I-O) accounts.         

The valuation in the I-O transaction record that is considered the most statistically reliable—that is, the value most closely based on hard data, such as the Economic Census, and least dependent on adjustments and judgmental estimation. The firm value may be the basic value, the purchasers’ value through wholesale, or the total purchasers’ value. (BEA)

Method of valuing inventories that assumes that the oldest stock in inventories is sold first. (BEA)

Construction work, both new and maintenance, preformed by employees of non-construction sectors. This economic activity (Employment, Value Added and Output) are shifted from non-construction sectors to the appropriate construction industry to satisfy BEA Benchmark I-O. State force account adjustments are made, when state data is adjusted to U.S. totals; county force account adjustments are made when adjusting to State totals.

A component of final uses that measures goods and services that are produced by the foreign sector and are purchased as intermediate inputs or for final use in the United States. The definition of imports in the U.S. international transactions accounts differs slightly from that in the NIPAs and I-O accounts, primarily in the treatment of trade in nonmonetary gold and of trade involving U.S. territories. Imports of goods by commodity are valued at U.S. domestic port values, including duties. Imports of services are valued at producers values. The entries for transportation services and for trade include adjustments that convert the value of total imports of goods and services to foreign port value. (BEA)

The value of an imported product before transportation costs, insurance, or customs duties associated with delivering the product to the United States. When these costs are added, the value of the product is measured at domestic port value. The sum of imports in final uses (shown at domestic port value) is equal to the foreign port value of the imports, with adjustments for domestically produced transportation costs, insurance, and duties. (BEA)

The interconnection of an industry to other industries to which it sells its outputs. It is measured as the row sum of the direct requirements table (direct forward linkage) or as the row sum of the total requirements table (total forward linkage). An industry has significant forward linkages when a substantial amount of its output is used by other industries as intermediate inputs to their production. (BEA)

The market value of merchandise at the U.S. port of export, based on transaction price including inland freight, insurance, and other charges incurred in placing the merchandise alongside the carrier at the U.S. port of exportation. The costs of loading the merchandise aboard the exporting carrier and of freight, insurance, and any charges or transportation costs beyond the port of exportation are excluded. (BEA)

The market value at the customs frontier of a country’s exports of merchandise, including all costs of transporting the goods to the customs frontier, export duties, and the cost of loading the goods onto the carrier unless the latter cost is borne by the carrier. (BEA)

Full-time equivalent employment is the number of full-time equivalent jobs, defined as total hours worked divided by average annual hours worked in fulltime jobs. (SNA)

Expenditure-based GDP is total final expenditures at purchasers’ prices (including the f.o.b. value of exports of goods and services), less the f.o.b. value of imports of goods and services. (SNA)

Income-based GDP is compensation of employees, plus taxes less subsidies on production and imports, plus gross mixed income, plus gross operating surplus. (SNA)

(Previously gross product originating by industry). GDP by industry is the contribution of each private industry and of government to the nation’s output, or GDP. An industrys GDP, or its \"value added,\" is equal to its gross output (which consists of sales or receipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (which consist of energy, raw materials, semi-finished goods, and services that are purchased from domestic industries or from foreign sources). It can also be measured as the sum of incomes related to production, such as wages and salary accruals and gross operating surplus. (BEA)

BEA: A set of accounts that present the contribution of each private industry and government to the Nation's gross domestic product (GDP). An industry's contribution is measured by its value added, which is equal to its gross output minus its intermediate purchases from domestic industries or from foreign sources. The GDP-by-industry accounts are consistent with the annual input-output (I-O) accounts.

GDP deflators convert the Employee Compensation and Proprietor Income values to the year of the dataset, and these adjusted values are used to calculate the Induced Effect of the Scenario. Separate deflators are needed for production and Labor Income because price inflation for income has it’s own rate of deflation separate from that of industries. GDP deflators vary across years, but not by selected industry Sector, as wage payment inflation is not directly affected by Sector selection. The Department of Commerce Bureau of Economic Analysis provides the measure of GDP deflation. 

Government agencies that provide goods and services financed largely by taxes and not through normal price transactions. Excludes government enterprises. (BEA)

General sales taxes consist of all general taxes levied at one stage only (e.g. manufacturing or wholesale or retail) plus multi-stage cumulative taxes (also known as cascade taxes) where tax is levied each time a transaction takes place without any deduction for tax paid on inputs. (SNA)

The generation of income account shows the types of primary incomes and the sectors, sub-sectors or industries in which the primary incomes originate, as distinct from the sectors or sub-sectors destined to receive such incomes. (SNA)

Goods are physical objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets; they are in demand because they may be used to satisfy the needs or wants of households or the community or used to produce other goods or services. (SNA)

As part of the 2003 comprehensive NIPA revision, the treatment of government was changed to recognize government as a producer. General government is now treated as an intermediate industry and recognized as producing services (valued as the expense of providing those services). Services that are directly purchased (for example, college tuition) are now treated as secondary products of the government industry, and the remaining services are treated as consumption expenditures in government final uses. (BEA)

A set of institutional units that have many of the characteristics of private businesses, but are owned by government. They sell their goods and services directly to the public for a price and thereby recover a significant part or all of their operating costs. Revenue from such sales are considered enterprise revenue if the good or service is similar to those sold by private business and if the provision of that good or service is the primary function of the government unit. Examples of government enterprises include electric utilities, local transit, and the United States Postal Service. (BEA)

Tables that show Federal Government and state and local government expenditures by the principal purpose that each program is intended to serve. NIPA tables 3.15-3.17 present government consumption expenditures classified by BEA\s own functional categories. For Federal, these include defense and multiple nondefense categories. For state and local, these include education, health, public order and safety, and several other functions. (BEA)

For IMPLAN purposes, government institutions are administrative activities.

Government units are unique kinds of legal entities established by political processes which have legislative, judicial or executive authority over other institutional units within a given area. (SNA)

The final-demand component for government in the NIPAs. It includes consumption expenditures, which is shown as a purchase of services of general government, and gross investment, which is shown as purchases of structures and equipment. It excludes some categories of expenditures—such as transfer payments, interest paid by government, and government subsidy payments. (BEA)

The term “gross” is a common means of referring to values before deducting consumption of fixed capital (generally used as in “gross capital stock” or “gross domestic product”); all the major balancing items in the accounts from value added through to saving may be recorded gross or net. (SNA)

Gross capital formation is measured by the total value of the gross fixed capital formation, changes in inventories and acquisitions less disposals of valuables for a unit or sector. (SNA)

The market value of the goods and services produced by labor and property located within the borders of the United States. In 1991, GDP replaced gross national product (GNP) as the featured measure of U.S. production. (BEA)

BEA: The market value of goods and services produced by labor and property in the United States, regardless of nationality; GDP replaced gross national product (GNP) as the primary measure of U.S. production in 1991.

includes payroll, benefits, and taxes

The market value of the goods and services produced by labor and property supplied by U.S. residents. (BEA)

As part of the 2003 comprehensive NIPA revision, replaced “other value added” as one of the three components of value added. It is a profits-like measure that includes proprietors’ income, corporate profits, net interest, business transfer payments, etc. GOS can be calculated as gross output less (1) intermediate inputs, (2) employee compensation, and (3) “taxes on production and imports less subsidies.” (BEA)

Also referred to as , Value Added,it  is the combination of Labor Income, Other Property Type Income and Indirect Business Taxes. Other Property Type Income (OPTI) includes corporate profits, interest income, and rental payments, while Indirect Business Taxes (IBT) are taxes collected by businesses on behalf of the government. These include sales tax, excise tax, property tax, fees, fines, and licenses. Hence, Value Added accounts for all non-commodity payments associated to an industry’s production. 

Gross Retail Margin is just the portion of a retail sales that goes to the retailer, or in the case of the wholesale Sector- this is the wholesale Margin

Gross retail sales is the purchaser price of a retail or wholesale sale. These are the receipts of a store’s sales to its customers. 

A 10-digit commodity classification system for foreign trade. It was introduced in the United States in January 1989 in order to ensure international comparability in the classification of exports and imports by commodity. There are approximately 19,000 codes for imports and 9,000 codes for exports. (BEA)

One of the three fundamental principles underlying the I-O accounts. Under this principle, each industry’s output is produced with a unique set of inputs or a unique production function. The other two principles are consistency and proportionality. (BEA)

A unit of homogeneous production is a producer unit in which only a single (non-ancillary) productive activity is carried out; this unit is not normally observable and is more an abstract or conceptual unit underlying the symmetric (product-by-product) input-output tables. (SNA)

The Household Income Change Activity has nine household classes (Sectors) to choose from, which can be examined independently or in combination. This break from defining income as being associated to labor payments, also permits modeling of household funds that are not derived from labor, resulting in a definitional change from factor income to institutional spending. 

Household Spending Patterns provide the most flexible approach, as coefficients of spending can be adjusted if detail spending data is available. When a value is entered into a Household Spending Pattern, the software assumes that every dollar entered will be spent to purchase goods and services. Because of this, all in-commuting, taxes, and savings have to be removed from the value before it is entered into IMPLAN⁶.

Residents of the study area. Final users of nondurable goods & services. One of several institutions in IMPLAN.

Are Labor income, Value Added and Output.

In IMPLAN these include the Direct, Indirect, Induced, and total effects. 

A table that shows the estimated use of imports by industries and final uses. The format of the import matrix is similar to that of the use table, but only imported commodities are distributed across the rows of the table. Because source data are not available on who purchases imports, the estimates are based on the assumption that each industry’s use of imports for a specific commodity is proportional to its total use of that commodity. To calculate the import matrix, a ratio of imports by product to supply (domestic production plus imports less exports and change in inventories) is used. Two import matrixes are prepared, one to match with the standard use table (before reallocation of inputs) and one to match with the supplementary use table (after the reallocation of inputs). (BEA)

Estimation of the dollar value of a nonmonetary or nonmarket transaction. In the calculation of the I-O accounts, a number of items are assigned imputed values. These imputations recognize specific nonmarket transactions, which if ignored, would result in erroneous accounting of the nation\s economic activities. The largest imputations are for the rental value of owner-occupied housing and for services provided without charge by financial intermediaries. (BEA)

BEA: Estimates of the value of certain income and product flows that do not take measurable monetary form. In the national income and product accounts (NIPAs) for example, BEA imputes a rental value to owner-occupied housing and a value to services that banks and other depository institutions provide without charge.

Benefits that accrue even though no money is received. For example, an employee receives imputed income when an employer offers free health insurance and life insurance coverage.

Workers are coming into the Study Area to work, but live outside this region 

Prior to the 2003 comprehensive NIPA revision, IBT was the name of one of the three components of value added. It consists of tax and nontax liabilities that are chargeable to business expenses when calculating profit-type incomes and of certain other business liabilities to government agencies that are treated like taxes. Thus, IBT includes taxes on sales, property, and production, but it excludes employer contributions for social insurance and taxes on income. As part of the NIPA revision, this component was modified and termed “taxes on production and imports less subsidies.” The major differences between the two are attributable to the treatments of subsidies and non-taxes. (BEA) In more general terms, IBT can currently be considered the combination of excise, sales and property taxes, as well as, fees, fines, licenses and permits.

The impact of local industries buying goods and services from other local industries. The cycle of spending works its way backward through the supply chain until all money leaks from the local economy, either through imports or by payments to value added. The impacts are calculated by applying Direct Effects to the Type I Multipliers.

Ratios that show the production required of an industry and of all other industries to meet that industry’s initial demand for production. The coefficient can be calculated as the total requirements matrix less the identity matrix less the direct requirements matrix. (BEA)

The response by an economy to an initial change (direct effect) that occurs through re-spending of income received by a component of value added. IMPLANs default multiplier recognizes that labor income (employee compensation and proprietor income components of value added) is not a leakage to the regional economy. This money is recirculated through the household spending patterns causing further local economic activity.

A group of establishments engaged in the same or similar types of economic activity. (BEA)

The Industry Activity Type is the most fundamental and commonly used impact type. Changes in sales, employment, wages (employee compensation), and proprietor income can all be used to measure the effects a specific industry or sector has on your Study Area. 

 Industry spending patterns allow the spending behavior of a particular firm or project to be customized without having to modify the underlying data for the industry. 

By this assumption, each industry’s production requires a unique set of inputs, no matter which product it is producing. This assumption provides the basis for the mechanical calculation of the total requirements tables in the I-O accounts. See also Handbook of Input-Output Table Compilation and Analysis, Studies in Methods, Handbook of National Accounting, Series F, No. 74, (New York: United Nations, 1999): 88. (BEA)

A broad expense category for an industry or final-use category. Examples include office supplies and purchased fuels. (BEA)

The dollar value of a commodity required directly by an industry to produce a dollar of output. It is also referred to as the direct requirement coefficient. (BEA)

The accounting of all current money flows from and to (outlays and outputs)industries located within the Study Area.

BEA: Show the relationships between all the industries in the economy and all the commodities that these industries produce and use. The estimates of purchases of commodities are shown in producers' prices. The I-O accounts consist of the make table, use table, direct requirements table, and total requirements tables. The make and use table are prepared in two different ways. The first way uses the Standard Industrial Classification System (SIC) or the North American Industry Classification System (NAICS). The second way begins with the SIC or NAICS but includes adjustments (redefinitions and reclassifications) that move some secondary products from one industry to another to attain a common input structure for commodities produced by industries. The direct requirements table and total requirements tables are computed from the make and use tables with redefinition and reclassifications. Related terms: Annual input-output (I-O) accounts, Benchmark input-output (I-O) accounts.