# Presentation: 079960

## Benchmark Input-Output Accounts

- Mary L. Streitwieser, Stas Rzeznik, and Nicholas Empey
- Industry Benchmark Division
- Industry Accounts Users’ Conference
- October 26, 2007

## Benchmark I-O Accounts

- Products and uses
- Changes and improvements in the 2002 accounts
- Future products
- Q&A

## Benchmark I-O Accounts

- Benchmark I-O accounts
- Based largely on Census Bureau data
- Prepared every five years
- 2002 released in September 2007
- October _S__URVEY__ __OF__ C__URRENT__ __BUSINESS - _BEA web site (www.BEA.gov): under _Publications_ click on _*Survey of Current Business*_* *

## Benchmark I-O Tables

- Make and Use tables
- Requirements tables
- Bridge tables
- Import matrix and concordance

## Internal Uses of Benchmark I-O Accounts

## Internal Uses of Benchmark I-O Accounts, cont.

## External Uses of Benchmark I-O Accounts

- Other Federal agencies
- BLS
- ITC
- Market analysis
- Impact analysis

## Sources of Improvement

- NIPA Comprehensive Revision
- Staff Research
- NAICS changes
- Expanded Source Data

## Government as Producer

## Tribal Governments

**Indian Nations’ activities are now shown in the Government industry**

## Bank Services

- Recognized the implicit services of commercial banks to borrowers and depositors

- Services to Borrowers
- Record keeping
- Intermediation
- Provision of credit

- Services to Depositors
- Record keeping
- Clearing checks
- Security

## Insurance Premiums

## TOPI and GOS

- Taxes on Production and Imports less subsidies (TOPI) replaces Indirect Business Taxes (IBT)
- Gross Operating Surplus (GOS) replaces Other Value Added (OVA)

## Other Improvements

- Royalties Output
- Personal Consumption
- Air transportation
- Food away from home
- Telecommunications
- Expanded Source Data
- Total expenses data
- Information sector

## Methodological Improvement

- BEA Integration Initiative requires reconciliation of Industry Value Added estimates in Benchmark Input-Output and  GDP-by-Industry accounts
- Benchmark estimates are expenditure-based
- GDP-by-Industry estimates are income-based

## Structure of the Use Table

## The Model

- Min* S *{*z*, *v*} =
*z* – intermediate inputs
*v *– value-added
*w* – reliability weights
*i* – industries
*k *– commodities
*h* – value-added components
- Constrained minimization model
- Constraints are specified to satisfy a balanced input-output framework

## The Model

- Subject to:
- Sum (Intermediate estimates) + Sum (Value Added) = Industry Gross Output
- Sum (Intermediate estimates) + Sum (Final Uses) = Commodity Gross Output
- Sum (Value Added) = GDP

## The Model

- Fixed elements
- Final use categories
- Industry and commodity gross output
- Compensation
- Taxes
- Variable elements
- Gross Operating Surplus (GOS)
- Intermediate inputs

## Comparing Reconciled GOS to Initial Benchmark GOS and Initial GDP-by-Industry GOS(Note:  Industries are randomly sorted and values are scaled.)

## Advantages of the new method

- Transparent
- Firm statistical foundation
- Flexible
- Replicable

## Where to Find Benchmark I-O Data and Information

- BEA web site (www.BEA.gov):
- Under _Industry_ click on _Benchmark Input-Output Accounts_
- Benchmark I-O tables from 1947 to 2002
- Interactive tables:  1987 to 2002
- “Concepts and Methods of the U.S. Input-Output Accounts” – In Publications box, click on _Papers and Working Papers;_ click on _BEA working papers_, scroll down to 2006

## Future Data Products

- Summer 2008:	2002 Capital Flow Table
- Fall 2008:	2002 Detail Methodology
- Fall 2009:	2002 Revised Benchmark I-O
- 				Accounts
- Fall 2010:	2007 Preliminary Gross
- 				Output and Proposed 					Classification Framework
- Fall 2012:	2007 Benchmark I-O Accounts

## Contact Information

- Email contact:
- Mary.Streitwieser@bea.gov
- Stanislaw.Rzeznik@bea.gov
- Nicholas.Empey@bea.gov
- benchmarkio@bea.gov
- Telephone contact:
- 202-606-5585