Contents
   Gross State Product, 1977-94

Contents

Using This Program

About Gross State Product

Compensation of Employees

Indirect Business Taxes

Other GSP

Real Chained-Dollar GSP

Industry Stub


About Gross State Product
Gross State Product (GSP)

     GSP for a State is derived as the sum of gross state product originating in all industries in the State.  In concept, an industry's GSP, referred to as its "value added," is equivalent to its gross output (sales or receipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (consumption of goods and services purchased from other industries or imported).  As such, it is often referred to as the State counterpart of the Nation's gross domestic product  (GDP).  In practice, GSP estimates are measured as the sum of distributions by industry of the components of gross domestic income - - that is, the sum of the costs incurred (such as compensation of employees, net interest, and indirect business taxes) and the profits earned in production.  The difference between GDP and gross domestic income is the statistical discrepancy.

     BEA prepares GSP estimates for 63 industries.   For each industry, GSP is composed of three components:

compensation of employees,
indirect business tax and nontax liability (IBT)
other GSP

     BEA prepares estimates of GSP in millions of current dollars  and of  real GSP  in millions of chained (1992) dollars.  The methodology for estimating current-dollar GSP differs by industry according to the source data that are available.  For private goods-producing industries except forestry and fishing, BEA estimates compensation, indirect business tax and nontax liability, proprietors' income, and total GSP; it then estimates other GSP excluding proprietors' income by subtracting compensation, indirect business tax and nontax liability, and proprietors' income from total GSP.  For forestry and fishing, for private services-producing industries, and for government, BEA estimates compensation, indirect business tax and nontax liability, proprietors' income, and other capital charges to get total GSP.  State estimates of GSP for all industries and components are "controlled" to national totals of gross product originating  (GPO) for all industries and components.

     The estimates of real GSP are derived by applying national chain-type implicit price deflators   by detailed industry to the current-dollar GSP estimates by detailed industry and then using a formula (see  "Technical Note:  Chain-Type Measures of Real GSP") to calculate chain-type estimates of real total GSP  and real GSP by major industry.   These estimates of real GSP reflect the uniqueness of each State's industry mix, but they do not reflect differences by State in the prices of goods and services produced for local markets.

      Real chained (1992) dollar GSP is published for the years 1982-94.

     This comprehensive revision of GSP is another step in updating and extending the regional accounts, as called for in BEA's strategic plan for improving the accuracy, reliability, and relevance of the national, regional, and international accounts.

REFERENCES


Compensation of Employees

GSP estimates of compensation of employees  are the sum of :

employee wages and salaries

supplements to wages and salaries

Wages and salaries and supplements of federal military and civilian employees stationed abroad are excluded from GSP.


Wages and Salaries

     Wage and salary disbursements are defined as the monetary remuneration of employees.  This remuneration includes the compensation of corporate officers; commissions, tips, and bonuses;  voluntary  employee contributions to certain deferred compensation plans, such as 401(k) plans; and receipts in kind, or pay-in-kind.

     BEA's   Regional Economic Measurement Division (REMD)  measures wage and salary disbursements before deductions, such as social security contributions and union dues, and they reflect the amount of wages and salaries disbursed. but not necessarily earned, during the year.  That is, REMD, for purposes of accounting for personal income, measures wages and salaries on a cash-flow basis.  GSP, on the other hand, accounts  for the costs of production on an accrual basis.   In order to account for the difference between annual wage and salary disbursements and accruals, an adjustment is made to the wage and salary estimates prepared by REMD.   This adjust ment is referred to as the WALD adjustment, for "Wage Accruals Less Disbursements."

REFERENCES


References: Wages and Salaries

      U.S. Department of Commerce, Bureau of Economic Analysis. Local Area Personal Income, 1969-92.  Washington, DC: U.S. Government Printing Office, September 1994.

     Parker, Robert P. and Eugene P. Seskin.  "Improved Estimates of the National Income and Product Accounts for 1959-95: Results of the Comprehensive Revision," Survey of Current Business  76 (January/February 1996):  1-31.


References: Gross State Product

      Friedenberg, Howard L. and Richard M. Beemiller.    "Comprehensive Revision of Gross State Product by Industry,  1977-94,"  Survey of Current Business 77 (June 1997).

     Yuskavage,  Robert E.  "Improved Estimates of Gross Product by Industry, 1959-94,"  Survey of Current Business  76 (August  1996):  133-155.


Indirect Business Taxes
Indirect Business Tax and Nontax Liability (IBT)

Indirect business tax and nontax liabilities (IBT) are the sum of:

   State and local IBT mainly comprise nonpersonal property taxes, licenses, nontax liabilities, and sales and gross receipts taxes.  For taxes on nonpersonal property other than farm and residential, for licenses, and for nontax liabilities, annual estimates by State and industry are based on Census Bureau data on taxes collected by type and State.  For taxes on farm property, annual estimates by State are based on data from the U.S. Department of Agriculture (USDA).  For taxes on residential property, estimates are based on Census Bureau data on the assessed value of residential property by State.  For sales and gross receipts taxes, annual estimates by State are based on Census Bureau data on taxes collected by State and on special BEA tabulations by State and industry prepared from State tax collection reports.

  Federal IBTcomprises nontax liabilities and excise taxes on goods and services.  Most nontax liabilities are allocated to the States using BEA wages and salary disbursements at the 4-digit Standard Industrial Classification (SIC) level of industry detail.  Wage and salary accruals, which are used throughout the GSP estimation process, are not available at the 4-digit level of detail.


Fixed Weighted GSP
Fixed Weighted, Constant Dollar  GSP

     In late 1996, as part of its comprehensive revision of the national income and product accounts, BEA introduced chain-type annual-weighted indexes, also known as Fisher indexes, as its featured measures of real output and prices.  These chain-type measures replaced the fixed-weighted "constant dollar" estimates that were based on the fixed price weights of a single year.

     Chain-type measures of real output address a basic problem in measuring real output and prices: The choice of the base period with which all other periods are compared.  However, some data users may still require the old fixed-weighted measures of GSP.   For this reason, fixed-weighted, constant dollar GSP estimates are included on the GSP distribution diskettes.  The constant dollar measures of GSP are computed using fixed 1992 prices.


References: General
References: Gross State Product

Additional information is available on these topics:

Gross State Product

Compensation of Employees

GSP Analysts

Other Regional Programs at BEA

BEA's  Stategic Plan

Chain-Type Measures of Real Product

Industries for Which GSP is Available

BEA's Multistate Regions


GSP Analysts to Contact with Questions
People to Contact With Questions about GSP:

Geroge Downey, Chief, GSP by Industry and Projections Branch	(202) 606 - 9214

Richard Beemiller	           606 - 9210

Gerard Aman	           606 - 9207

Michael Wells	           606 - 9228

Lance Daugherty	           606 - 9213

Other  Regional Economics Programs at BEA


Industry Definitions
Industries for Which Gross State Product Estimates Are Available

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______________________________________________________________________________

                                                                      1987 SIC
                                                                        code
______________________________________________________________________________

Agriculture, forestry, and fishing ...................................       A
  Farms ..............................................................   01-02
  Agricultural services, forestry, and fishing .......................   07-09

Mining ...............................................................       B
  Metal mining .......................................................      10
  Coal mining ........................................................      12
  Oil and gas extraction .............................................      13
  Nonmetallic minerals, except fuels .................................      14

Construction .........................................................       C

Manufacturing ........................................................       D

  Durable goods ......................................................      ..
    Lumber and wood products .........................................      24
    Furniture and fixtures ...........................................      25
    Stone, clay, and glass products ..................................      32
    Primary metal industries .........................................      33
    Fabricated metal products ........................................      34
    Industrial machinery and equipment ...............................      35
    Electronic and other electric equipment /1/.......................      36
    Motor vehicles and equipment .....................................     371
    Other transportation equipment ...................................  372-79
    Instruments and related products /1/..............................      38
    Miscellaneous manufacturing industries ...........................      39

  Nondurable goods ...................................................      ..
    Food and kindred products ........................................      20
    Tobacco products .................................................      21
    Textile mill products ............................................      22
    Apparel and other textile products ...............................      23
    Paper and allied products ........................................      26
    Printing and publishing ..........................................      27
    Chemicals and allied products ....................................      28
    Petroleum and coal products ......................................      29
    Rubber and miscellaneous plastics products .......................      30
    Leather and leather products .....................................      31

Transportation and public utilities ..................................       E
  Railroad transportation ............................................      40
  Local and interurban passenger transit .............................      41
  Trucking and warehousing ...........................................      42
  Water transportation ...............................................      44
  Transportation by air ..............................................      45
  Pipelines, except natural gas ......................................      46
  Transportation services ............................................      47
  Communications .....................................................      48
  Electric, gas, and sanitary services ...............................      49

Wholesale trade ......................................................       F

Retail trade .........................................................       G

Finance, insurance, and real estate ..................................       H
  Depository institutions /2/.........................................      60
  Nondepository institutions /2/......................................      61
  Security and commodity brokers .....................................      62
  Insurance carriers .................................................      63
  Insurance agents, brokers, and service .............................      64
  Real estate ........................................................      65
  Holding and other investment offices ...............................      67

Services .............................................................       I
  Hotels and other lodging places ....................................      70
  Personal services ..................................................      72
  Business services /3/...............................................      73
  Auto repair, services, and parking .................................      75
  Miscellaneous repair services ......................................      76
  Motion pictures ....................................................      78
  Amusement and recreation services ..................................      79
  Health services ....................................................      80
  Legal services .....................................................      81
  Educational services ...............................................      82
  Social services ....................................................      83
  Membership organizations ...........................................      86
  Other services /3/..................................................84,87,89
  Private households .................................................      88

Government ...........................................................       J
  Federal civilian ...................................................   91-96
  Federal military ...................................................      97
  State and local ....................................................   91-96

Addenda:
  Electronic equipment and instruments  /4/
  Depository and nondepository institutions /5/
  Business, miscellaneous professional, and other services /6/

______________________________________________________________________________

   1. Estimates for 1977-86 are for the 1972 SIC industries electric and
electronic equipment and instruments and related products.

   2. Estimates for 1977-86 are for the 1972 SIC industries banking and credit
agencies other than banks.

   3. Estimates for 1977-86 are for the 1972 SIC industries business services
and miscellaneous professional services.

   4. The combination of 1987 SIC industries electronic and other electric
equipment and instruments and related products is the equivalent of 1972 SIC
industries electric and electronic equipment and instruments and related products.

   5. The combination of 1987 SIC industries depository institutions and nondepository
institutions is the equivalent of 1972 SIC industries banking and credit agencies
other than banks.

   6. The combination of 1987 SIC industries business services and other services is
the equivalent of 1972 SIC industries business services and miscellaneous professional
services.

  SIC    Standard Industrial Classification


Supplements to Wages and Salaries

     Supplements to wages and salaries consist of employer contributions for social insurance and other labor income.

    Employer contributions for social insurance consist of employer payments under the following programs:

   old age, survivors, and disability insurance ("Social Security")
   hospital insurance
   unemployment insurance
   railroad retirement
   government employee retirement
   pension benefit guaranty
   veterans' life insurance
   publicly-administered workers' compensation
   military insurance
   temporary disability insurance

     Although these employer contributions to publicly-administered social insurance programs are treated as a cost of production, and are included in the calculation of GSP,  they are not treated as part of income when accounting for personal income.  Instead, the payments from the programs are counted as personal income  when they are paid out to individuals.

     Other Labor Income, or OLI, consists of  employer payments to private pension and profit-sharing plans, private group health and life insurance plans, privately-administered workers' compensation plans, supplemental unemployment benefit plans, corporate directors' fees,  and several minor categories of employee compensation, including judicial fees to juries and witnesses, compensation of prison inmates, and marriage fees to justices of the peace.

References


References: Supplements

     U.S. Department of Commerce, Bureau of Economic Analysis. National Income and Product Accounts of the United States, Volume I, 1929-58. .  Washington DC: U.S. Government Printing Office, February 1993.

     U.S. Department of Commerce, Bureau of Economic Analysis.  Local Area Personal Income, 1969-92 Washington DC: U.S. Government Printing Office, September 1994.


Gross Domestic Product
Gross Domestic Product (GDP)

Gross Domestic Product is the most commonly used comprehensive measure of the Nation's economic activity.  It is the  market value of the goods and services produced by labor and property in the United States.  GDP replaced GNP as the primary measure of U.S. production in 1991.

References


References: GDP
References: Gross Domestic Product (GDP)

     Bureau of Economic Analysis, National Income and Product Accounts of The United States, Volume 1, 1929-58. (Washington, DC: U.S. Government Printing Office, February 1993): M-5.

     Parker, Robert P. and Eugene P. Seskin, "Improved Estimates of the National Income and Product Accounts for 1959-95: Results of the Comprehensive Revision," Survey of Current Business  76 (January/February 1996):  1-31.

     Parker, Robert P. , "Completion of the Comprehensive Revision of the National Income and Product Accounts, 1929-96," Survey of Current Business  77 (May 1997):  6-29.


Gross Product Originating
Gross Product Originating (GPO)

     An industry's GPO, also referred to as its "value added", is equal to its gross output (sales or receipts and other operating income, plus inventory change) minus its intermediate inputs (consumption of goods and services purchased from other industries or imported)..

References


References: Gross Product Originating
References: Gross Product Originating (GPO)

      Parker,  Robert P.  "Gross Product by Industry, 1977-90,"  Survey of Current Business  73 (May 1993):  33-54.

      Yuskavage, Robert E.  "Improved Estimates of Gross Product by Industry, 1959-94,"  Survey of Current Business  76 (August 1996):  133-55.


Other GSP
Other Gross State Product

Other GSP comprises proprietors' income and other capital charges.

     Proprietors' income includes income of unincorporated establishments, rental income of persons, proprietors' inventory valuation adjustment, and non-corporate capital consumption allowance (CCA).

     Other capital charges include corporate profits before taxes, net interest,, corporate inventory valuation adjustment, corporate capital consumption allowance (CCA), business transfer payments, and subsidies.

     For the government industries, other capital charges comprise subsidies less current surplus of government enterprises and the consumption of fixed capital.


Other Regional Programs
Regional Programs in BEA

Regional Economic Analysis Division (READ)

General number:  	(202) 606 - 3700

Major program areas:

Gross State Product  (GSP)
     George Downey	(202) 606 - 9214

Regional Impact Multiplier System (RIMS)
     Andrew Bernat	(202) 606 - 9236
     Zoe Ambargis	(202) 606 - 9237

BEA Economic Areas
     Kenneth Johnson	(202) 606 - 9219

Longterm Regional Economic Projections
     George Downey	(202) 606 - 9214

Current Regional Economic Analysis
     Duke Tran	(202) 606 - 9230

Regional Economic Measurement Division  (REMD)

REMD publishes a number of regional estimates, including:

     wage and salary income by industry for States and counties,
     employment  by industry for States and counties,
     annual and quarterly State personal income,
     farm and nonfarm proprietors' income and employment,
     residence adjustment for States and counties,
     and other regional estimates for transfer payments, dividends, interest, and rental income.

Many of these historical data series are included on a CD-ROM available directly from REMD's Regional Economic Information System (REIS).

General number (REMD):  	(202) 606 - 4500
CD-ROM information (REIS):	(202) 606 - 5360


Data Availability

     Detailed estimates of current-dollar GSP (and quantity indexes) for 1977-94 and of real GSP, in chained (1992) dollars for 1982-94 and in fixed-weighted (1992) dollars for 1977-94 for 63 industries for States, BEA regions, and the United States are available electronically to subscribers to the Economic Bulletin Board (EBB) and to the Internet from the Commerce Department's STAT-USA.  Information about the EBB and about Internet services may be obtained at the same voice number and on-line as follows:

 	EBB  (202) 482-3870

 	Internet http://www.stat-usa.gov

     The detailed estimates of GSP are available on 3 1/2-inch, high density diskettes.  The diskettes include a Windows program so that selected records from the data files can be imported into computer spreadsheets.  Orders should specify BEA Accession No. 61-97-40-424 (two diskettes, $40).  Send your orders, along with a check or money order payable to "Bureau of Economic Analysis," to Public Information Office, Order Desk, BE-53, Bureau of Economic Analysis, U.S. Department of Commerce, Washington DC 20230; or call (202) 606-9900.  Visa or MasterCard are accepted for telephone orders.  For further information, e-mail gsp.read@bea.doc.gov or call (202) 606-5340.

     A discussion of the GSP estimates appears in:

     Friedenberg, Howard L. and Richard M. Beemiller.  "Comprehensive Revision of Gross State Product by Industry,  1977-94,"  Survey of Current Business  77 (June 1997).


Using this Program

     This program has two modes of operation:  Data Viewer mode  and Data Export mode.     When you first start the program, it is in Data Viewer mode.   This program mode allows you to quickly retrieve and view  any of seven data series :

Current dollar gross state product (GSP)

compensation of employees

indirect business taxes (IBT)

other GSP

Quantity indexes for GSP

Real chained-dollar GSP

Constant dollar (fixed weighted) GSP

     You can view any of these data series either for all industries for a selected State or multistate region, or for all States and multistate regions for a selected industry.   You can also  Print  the displayed data or Write  the displayed data to a file, in space / quote delimited format.

     This program's  Data Export mode  allows you to select any set of regions (States and/or multistate regions), industries, and data series and write the selected data to an output file for later use by spreadsheets or other applications.

     To select data for export to an output file  choose "Select Multiple Variables for Export" under the File menu item.  You will then be presented with scrolling menu boxes that  allow you to select regions, industries, and data series for export.


Export File Format

     When you go to the File menu and choose Write Grid To File  or Select Multiple Variables for Export, , the program will write the data you have selected to an output file in space / quote delimited format.  This type of file is extremely easy to import into almost any spreadsheet program, but you may have to indicate the file format when you import the data.  (Some spreadsheet programs may treat this type of file as "comma / quote delimited".)

     You will have the opportunity to select the destination directory and file name for the output data file.  If you select the name of an existing  file, the program will inform you that the file already exists and will ask if you want to continue.  If you choose to continue, the program will overwrite and destroy  the data in the pre-existing file.

     Numerical values in the output file  are not enclosed in quotes, but have at least one space between them.  Text strings, including special codes, are enclosed in quotes.

     The first line of the output file contains text fields that serve as column headings for the data below them.  Footnotes and other information about the GSP data file are written at the end of the file and are formatted as quote-delimited text.   The exact output record format is as follows Maximize this window if the following lines are word-wrapped  :

   1 ... 5      6 ... 70       71 ... 80        81 ... 110       111 ... 120       121 ... 150       151 ... 161        162 ... 172        173 ... 183        . . .      338 ... 348
     ID#        Label       Code #          Label             Code #             Label           Data 1977       Data 1978       Data 1979      . . .      Data 1994

     In addition to text labels, each record includes numeric  codes to identify the GSP component, industry, and region of  the data contained in the record.

     The ID number in record positions 1 - 5 contains a GSP component code   uniquely associated with the text label contained in positions 6 - 70.

     The numeric codes in record positions 71 - 80 and in positions 111 - 120 are industry and region identifiers.  The State identifier is the  FIPS (Federal Information Processing Standard) code   for the region.   The industry identifier is a GSP industry code.


Select Multiple Variables for Export

     If you choose "Select Multiple Variables for Export" under the File menu, you will be presented with a screen that allows you to choose:

- -   The data series you want to export  (current dollar GSP, compensation, indirect business taxes, other GSP,   quantity indexes for GSP, real chained-dollar GSP, and fixed-weighted constant dollar GSP ).

- -   Any number of geographic areas,  States and/or multistate regions  .  To select multiple areas, either hold down on the left mouse button while dragging the arrow down the list of regions or hold down the Control Key while selectively clicking on  whichever States or multistate regions you want to select.

- -   Any number of industries.   To select multiple industries, either hold down the left mouse button while dragging the arrow down the list of industries, or hold down the Control Key while selectively clicking on whichever industries you want to select.

     You will have the opportunity to select the destination directory and file name for your output data file.  If you select the name of an existing file, the program will inform you that the output file already exists and will ask if you want to continue.  If you choose to continue, the program will overwrite and destroy  the data in the pre-existing file.

The  output file  will consist of space / quote delimited ASCII text.


Write Grid to a File
Write Grid to File

     Choosing "Write Grid to File" under the File menu will output the contents of the display grid.  You will have the opportunity to select the destination directory and file name for the output data file.  If you select the name of an existing file, the program will inform you that the file already exists and will ask if you want to continue.  If you choose to continue, the program will overwrite and destroy  the data in the pre-existing file.

     The output file   will consist of space / quote delimited ASCII text.


Print the Grid
Printing the Display Grid

    You may print the contents of the display grid in the Data Viewer  by selecting  "Print Grid" under the File menu.

     The default printer and page orientation are those which are currently set under your Windows print settings.  To change the destination printer or page orientation, go to the Printer icon under the Windows Control Panel.


Data Viewer Mode

     When you first start this program, you are in Data Viewer mode.    Also, the program returns to this mode if you have gone into and subsequently exited from  the program's  Data Export mode.

     Data Viewer mode allows you to quickly retrieve and view any of the seven data series that are included in the GSP distribution files.  You can view  for all   industries for a selected State (or multistate region ) or for all States (and multistate regions) for a selected industry.

      You may also  Print  the displayed data or Write  the displayed data to a file by selecting these operations under the File menu item.


Chained Dollar GSP
Real (Chained 1992 Dollar) GSP

      In late 1995, as part of its comprehensive revision of the national income and product accounts, BEA  replaced its fixed-weighted index as the featured measure of real GDP with an index based on the chain-type annual-weighted index, which BEA began publishing in 1992.

     The estimates of real GSP for 1982-94 are derived by applying national chain-type implicit price deflators by detailed industry to the current-dollar GSP estimates by detailed industry and then using a formula (see "Technical Note:  Chain-Type Measures of Real GSP"  ) to calculate chain-type estimates of real GSP by aggregate industry and in total.

    Real GSPis an inflation-adjusted measure of each State's output that is based on national prices for the goods and services produced within that State.  It is not a measure of the cost of goods and services consumed in each State and may include a substantial volume of output shipped to other States or countries.  To the extent that a State's output is produced and sold  in national markets at relatively uniform prices (or sold locally at national prices), GSP does a reasonable job of measuring real output by capturing the differences across States that reflect relative differences in the mix of goods and services that the States produce.  However, real GSP does not capture geographic differences in the prices of goods and services produced for local markets.

     Chain-type measures of real GSP by industry are shown in chained (1992) dollars and are published for the years 1982-94 only.   In general, these chain-type measures of real GSP are not additive across either industries or regions.  That is, real  GSP for detailed industries may not necessarily add to total real GSP or to any intermediate aggregate.  Moreover,  real GSP for  the States may not necessarily add to real GSP for either multistate regions or the nation, and real GSP for the multistate regions may not necessarily add to real GSP for the nation.

     The chain-type index is superior to the fixed-weighted index in that it allows for changing relative prices and production patterns, and thus provides unbiased comparisons of economic activity over long periods of time.

References


Future GSP Releases
Future Release Schedule of GSP Estimates

     This comprehensive revision of GSP is another step in updating and extending the regional accounts, as called for in BEA's Strategic Plan.  Later this year, as part of the continuing effort to integrate BEA's national and regional accounts, staff from the Regional Economic Analysis Division will work jointly with staff from the GPO by Industry Branch in the Industry Economics Division to produce estimates of national GPO by industry for 1995 and 1996 and preliminary estimates of GSP for 1995.

     In mid-1998, BEA will release revised estimates of GSP for 1995 and preliminary estimates for 1996.   The estimates will then be as timely as possible, following a typical schedule for receipt of  source data.  Future improvements will focus on increasing the consistency among the GPO estimates, the GSP estimates, and BEA's benchmark national input-output accounts and on incorporating more State-specific data into the GSP estimates.


Strategic Plan
BEA's Strategic Plan for Improving the Accuracy, Reliability, and Relevance of the National, Regional, and International Accounts.

     In April 1995, the Bureau of Economic Analysis (BEA) finalized the development of a strategic plan for maintaining and improving its national, regional, and international accounts.  The final version of the plan was based upon a comprehensive review of the accounts conducted in 1994 and a draft plan developed in coordination with the public and other statistical agencies.  The strategic  plan places needed improvements to the accounts in the context of a comprehensive multiyear plan that will enable BEA to continue to provide timely, accurate, and relevant information to its users.

References


Technical Note on Chain-Type Measures
Technical Note: Chain-Type Measures of Real GSP

     The estimation of GSP by State and industry consists of two broad computational stages:  (1) The estimation of current-dollar values, and (2) the separation of the current-dollar values into a price-change element and a quantity-change element.  The quantity-change element has been referred to as the change in "constant-dollar" GSP or sometimes as the change in "real" GSP.  However, real GSP cannot be observed or collected directly from source data as current-dollar GSP can; real GSP is an analytical concept--an index that measures aggregate quantities of disparate commodities.

     In the past, the measures of change in real GSP were calculated by fixing the valuations of GSP in a period (base year) and holding those valuations fixed over all the years for which GSP estimates are produced.  However, these "fixed-weighted" measures of real GSP tend to misstate growth as one moves further from the base period--usually understating growth before the base year and overstating it after the base year.  This tendency, often referred to as the "substitution bias," reflects the fact that the commodities for which output grows rapidly tend to be those for which prices increase less than average or decline.  To correct for this bias, BEA introduced chain-type measures of real GDP in 1992.  In 1996, BEA extended the use of chain-type measures to the national estimates of gross product originating by industry.  Now, the use of chain-type measures has been extended to the GSP estimates by State and industry.

     Beginning with this comprehensive revision of GSP, annual chain-type quantity indexes are the measures of real GSP.  Each link in the chain-type quantity index is a Fisher quantity index for 2 adjacent years.  Each annual Fisher quantity index, in turn, is the geometric mean of the Laspeyres and Paasche quantity indexes for the 2 adjacent years.  The Laspeyres quantity index uses the prices of the first year to weight the quantities in the 2 adjacent years.  The Paasche quantity index uses the prices of the second year to weight the quantities.  In the following formulas, L refers to the Laspeyres quantity index, P refers to the Paasche quantity index, F refers to the Fisher quantity index, C refers to the Fisher chain-type quantity index, i refers to the number of detailed industries for which GSP is estimated, and p and q refer to detailed prices and quantities, respectively.

     The Laspeyres quantity index for GSP is defined as:

     The Paasche quantity index for GSP is defined as:

     The Fisher quantity index is defined as the geometric mean of the Laspeyres and Paasche quantity indexes as follows

     However, because the variables that represent the composites of prices in 1 year and quantities in an adjacent year (for example, pi,1qi,2) are not directly observable, the Fisher quantity indexes were actually calculated using an algebraically equivalent formula that consists of combinations of prices and quantities for the same year and indexes of relative prices for the 2 adjacent years:

     These Fisher quantity indexes are then chained - - annual indexes are multiplied by the previous year's index, with the base year (1992) set equal to 100 - - to derive the percent growth in real GSP relative to the base year, allowing for the effects of changes in relative prices and in the composition of output over time:

     Real chained-dollar GSP estimates are then calculated as the product of the Fisher chain-type quantity index for each year (divided by 100) and of the current-dollar value for 1992 (the base year).

     Using the Fisher chain-type quantity indexes reduces the substitution bias in real GSP growth, but there are some limitations.  Although the annual weights provide more accurate estimates, the chained (1992) dollars are not strictly additive, especially for periods far away from the base period.  Many users of the previously published GSP estimates had found the additive property of real, or constant, dollars based on fixed-weighted indexes useful for analyses of long-term regional growth and for forecasting short- and long-term trends in their State's economy.

     The GSP estimates in chained (1992) dollars provide users with real estimates for analysis and for macromodeling that are nearly additive for years close to the base period.  The nonadditivity of the chained (1992) dollars is reflected in a residual "not allocated by industry,"  which is calculated as the difference between the sum of the industry detail of real GSP and total real GSP.  For years close to the 1992 base year, this residual is small (less than an average of 0.1 percent of total GSP for the Nation for 1987-94), and the contributions to growth computed from the chained (1992) dollars are reasonable approximations of those computed from the chain indexes.  However, for years far from the 1992 base year, the residual tends to become large, and the contributions to growth computed from the chained (1992) dollars can differ significantly from those computed from the chain indexes.

     As discussed in the article "BEA's Chain Indexes, Time Series, and Measures of Long-Term Economic Growth" in the May 1997 Survey of Current Business, BEA recommends using estimates of real economic growth that are based on chain-type quantity indexes and on percent changes in the indexes for long-term periods (1929 to the present for GDP and 1977 to the present for GSP).  The estimates in chained (1992) dollars should only be used for periods close to the base year (1982 to the present for GDP and GSP).  For users who rely on real estimates that are denominated in dollars, the May article demonstrates how to prepare close approximations of contributions to growth or relative changes for any period.

References


Quantity Index
Quantity Indexes for GSP

     The quantity indexes of GSP are Fisher  indexes  calculated using a formula consisting of combinations of prices and quantities for the same year, and indexes of relative prices for two adjacent years.   The Fisher quantity index (F) is defined as the geometric mean of the Laspeyres (L) and Paasche (P) quantity indexes as follows

      These Fisher quantity indexes are then chained - - annual indexes are multiplied by the previous year's index, with the base year (1992) set equal to 100 - - to derive real percent growth in GSP relative to the base year, allowing for the effects of changes in relative prices and in the composition of output over time:

     For more detailed information about the calculation of these quantity indexes, refer to "Technical Note:  Chain-Type Measures of  Real  GSP"


Regions
BEA Multistate Regions

The following is a list of the BEA multistate regions and the States included in them:

NEW ENGLAND
 Connecticut
 Maine
 Massachusetts
 New Hampshire
 Rhode Island
 Vermont

MIDEAST
 Delaware
 District of Columbia
 Maryland
 New Jersey
 New York
 Pennsylvania

GREAT LAKES
 Illinois
 Indiana
 Michigan
 Ohio
 Wisconsin

PLAINS
 Iowa
 Kansas
 Minnesota
 Missouri
 Nebraska
 North Dakota
 South Dakota

SOUTHEAST
 Alabama
 Arkansas
 Florida
 Georgia
 Kentucky
 Louisiana
 Mississippi
 North Carolina
 South Carolina
 Tennessee
 Virginia
 West Virginia

SOUTHWEST
 Arizona
 New Mexico
 Oklahoma
 Texas

ROCKY MOUNTAIN
 Colorado
 Idaho
 Montana
 Utah
 Wyoming

FAR WEST
 Alaska
 California
 Hawaii
 Nevada
 Oregon
 Washington


Special Codes
Special Data Codes

The following codes appear in some data fields:

 (L) 	 Less than $500,000.

 (N/A)  	Not available.   Estimates for some data series are  not available for some years because  of computational  difficulties caused by the SIC code break at 1987.   Chained (1992) dollar GSP is not published for years before 1982.

 (D)  	Not shown to avoid disclosure of confidential information; estimates are included in higher	 level  totals.

When these codes appear in the data files produced by this program, the codes are formatted as quote-delimited text.

Footnotes and other information about the GSP data in the data file are written at the end of the file and are formatted as quote-delimited text.


References: Chain Dollars
References: Chain-Type Measures of Real Product

     Landefeld, J. Steven and Robert P. Parker. "BEA's Chain Indexes, Time Series, and Measures of Long-Term Economic Growth."   Survey of Current Business  77 ( May  1997):  58-68.

     Parker, Robert P. and Jack E. Triplett.   "Chain-Type Measures of Real Output and Prices in the U.S. National Income and Product Accounts: An Update."  Business Economics ( October 1996).

     Triplett, Jack E.  "Economic Theory and BEA's Alternative Quantity and Price Indexes."  Survey of Current Business  72  ( April  1992):  49-52.

     Young, Allan H.  "Alternative Measures of Change in Real Output and Prices, Quarterly Estimates for 1959-92."  Survey of Current Business  73 ( March  1993):  31-37.


References: BEA's Strategic Plan

     "Mid-Decade Strategic Review of BEA's Economic Accounts: Maintaining and Improving Their Performance."  Survey of Current Business  75 (February 1995):  36-66.

     "Mid-Decade Strategic Review of BEA's Economic Accounts: An Update."  Survey of Current Business  75 (April 1995):  48-56.

     "BEA's Mid-Decade Strategic Plan: A Progress Report."  Survey of Current Business  76 (June 1996):  48-56.


ComponentCodes
GSP Component Codes

The following GSP component codes are contained in positions 1 - 5 of the export file that is written when you select "Write Grid to File" or when you select multiple items for export to a file :

      ID #                                   GSP Component
   ----------           ----------------------------------------------------------------------------------------
      200	Gross State Product (millions of current dollars)
      400          	Compensation of Employees (millions of current dollars)
      300           	Indirect Business Tax (millions of current dollars)
      700         	Other GSP (millions of current dollars)
      800          	Quantity Indexes for Real GSP (1992 = 100.0)
      900           	Real GSP (millions of chained 1992 dollars)
      100           	Constant-Dollar GSP (millions of fixed-weight 1992 dollars)


FIPS_Codes
Federal Information Processing Standards (FIPS) Codes

01    Alabama
02    Alaska
04    Arizona
05    Arkansas
06    California
08    Colorado
09    Connecticut
10    Delaware
11    Dist. of Col.
12    Florida
13    Georgia
15    Hawaii
16    Idaho
17    Illinois
18    Indiana
19    Iowa
20    Kansas
21    Kentucky
22    Louisiana
23    Maine
24    Maryland
25    Massachusetts
26    Michigan
27    Minnesota
28    Mississippi
29    Missouri
30    Montana
31    Nebraska
32    Nevada
33    New Hampshire
34    New Jersey
35    New Mexico
36    New York
37    North Carolina
38    North Dakota
39    Ohio
40    Oklahoma
41    Oregon
42    Pennsylvania
44    Rhode Island
45    South Carolina
46    South Dakota
47    Tennessee
48    Texas
49    Utah
50    Vermont
51    Virginia
53    Washington
54    West Virginia
55    Wisconsin
56    Wyoming
00    UNITED STATES
91    NEW ENGLAND
92    MIDEAST
93    GREAT LAKES
94    PLAINS
95    SOUTHEAST
96    SOUTHWEST
97    ROCKY MTN
98    FAR WEST


GSP_Codes
GSP Industry Codes

0          Total Gross State Product
5000     Private industries
10000     Agriculture, forestry, fish
10010      Farms
20070      Agricultural services, ...
30000     Mining
30100      Metal mining
30120      Coal mining
30130      Oil & gas
30140      Nonmetalic minerals
40000     Construction
50000     Manufacturing
51000      Durable goods
51240       Lumber & wood
51250       Furniture and fixtures
51320       Stone, clay, glass
51330       Primary metals
51340       Fabricated metals
51350       Industrial machinery
51360       Electronic equipment
51371       Motor vehicles
51379       Other transport. equip.
51380       Instruments and related
51390       Misc. manufacturing
52000      Nondurable goods
52200       Food & kindred products
52210       Tobacco products
52220       Textile mill products
52230       Apparel & textile
52260       Paper products
52270       Printing & publishing
52280       Chemicals
52290       Petroleum products
52300       Rubber & plastics
52310       Leather products
60000     Transportation & utilities
62000      Transportation
62400       Railroad transportation
62410       Local & interurban
62420       Trucking and warehousing
62440       Water transportation
62450       Transportation by air
62460       Pipelines, ex. nat. gas
62470       Transportation services
64000      Communications
66000      Electric, gas, & sanitary
70000     Wholesale trade
80000     Retail trade
90000     F.I.R.E.
90600      Depository institutions
90610      Nondepository institutions
90620      Security brokers
90630      Insurance carriers
90640      Insurance agents
90650      Real estate
90670      Holding and investment
100000    Services
100700     Hotels & lodging
100720     Personal services
100730     Business services
100750     Auto repair & parking
100760     Misc. repair services
100780     Motion pictures
100790     Amusement and recreation
100800     Health services
100810     Legal services
100820     Educational services
100830     Social services
100860     Membership organizations
100840     Other services
100880     Private households
110000    Government
111000     Federal civilian
112000     Federal military
113000     State and local
51999       Electronic eq. + Instruments
90999       Depository + Nondepository
100999     Business serv. + Other serv.