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# United States

The 1977 Census of Manufactures is held every five years as in Brazil and Mexico, but the dates are different. The nearest census to 1975 is 1977. The Annual Survey of Manufactures 1975-76 (ASM) can be used to retropolate to 1975 for output and input values and for employment, but it contains no information on the quantity of output. In order to link 1975 and 1977 in quantitative terms, we were advised to use the detailed indices of shipments in constant 1972 dollars which are contained in the 1982 US Industrial Outlook for 200 Industries with ProJections for 1986 (US Dept. of Commerce, 1982, pp. 431-8), rather than the detailed releases of the Federal Reserve Bank, which is responsible for the monthly index of industrial production.

The 1977 Census of Manufactures presents cost information only for inputs which are directly related to the production process as well as fuel and energy consumption and contract work. It does not provide information on the cost of most purchased services, as is done in Brazil and Mexico. As a result, the census definition of value added is bigger than that in the National Accounts. This is indicated in the introductory notes to the General Summary volume of the Census reports (pp. XXV-XXVII of the 1977 Census), which gives a very rough reconciliation of the census information and the national accounts. The treatment there is rather perfunctory, given the wealth of statistical information at the disposal at the US Dept. of Commerce and the existence of a very detailed (537 industry) input-output table for 1977 (see below).

The Bureau of Economic Analysis (BEA) was kind enough to provide detail by major branch which permitted a somewhat better reconciliation for 1975 than in the published sources. This information was used in table 2.6 to adjust the national accounts figures for the 21 branches to eliminate the impact of their inventory valuation adjustment' and the impact of indirect taxes and subsidies. After eliminating these items in column 5, we arrive at the residual national accounts figure which roughly represents what the census figures would be if purchased services were deducted. This reconciliation is rough for particular branches because the BEA calculates value added as the sum of income flows. Wages and salaries are collected from Bureau of Labor Statistics (BLS) information based on unemployment insurance data. BEA and BLS use the same classification system as the census but establishments whose output-mix is varied, may well be classified in different industries from the census. Profits, depreciation and interest estimates are derived from income tax sources for companies (not establishments). For profits and depreciation there is an attempt to convert to an establishment Lbsis using the "Census-Internal Revenue Service Link Project", but this is not done for interest payments. Hence some of the industry variation in our coefficients in table 2.6 is due to possible

- The census gives the value of inventory changes as reported by the manufacturer. BEA modifies these "book values" with an adjustment which converts them to a replacement cost valuation consistent with its definition of GDP.