Local area personal income - BEA's Regional Accounts - United States Bureau of Economic Analysis

Survey of Current Business, March, 2003

The Bureau of Economic Analysis prepares estimates of personal income for local areas (counties, metropolitan areas, and the Bureau's BEA economic areas). The personal income of an area is the income that is received by, or on behalf of, the residents of that area. Personal income consists of the income that is received by persons from participation in production, from government and business transfer payments, and from government interest.

Local area personal income is the only detailed, broadly inclusive economic time series for local areas that is available annually. Estimates of labor and proprietors' earnings by place of work indicate economic activity of establishments in an area, and estimates of personal income by place of residence indicate income within an area that is available for spending. Annual estimates of per capita personal income are an indicator of economic well-being of the residents of an area.

Estimates of total and per capita personal income, beginning with 1969, are available for each of the 3,110 counties and county equivalents, the 335 metropolitan areas, and the 172 BEA economic areas in the United States. Estimates are released 17 months after the end of the year. Annual estimates for areas of earnings for 77 industries, employment for 14 major industries, transfer payments by major program, farm gross income and expenses by major category, and economic profiles are also available. In addition, 1-page narratives containing information on current estimates of personal income, growth rates, and a breakdown of the sources of personal income are available for each county, metropolitan area, and economic area.

The Bureau prepares regular analyses of the local area personal income estimates that accompany the release of new estimates and also periodically prepares and releases special data analyses on topics of particular interest. For example, special analyses have been used to define, and redefine as necessary, the geographic boundaries of the BEA economic areas.

Uses of the local area personal income estimates

The local area estimates of personal income and its components, of per capita personal income, and of employment are widely used by both the public and the private sectors to measure and to track the levels and the types of incomes that are received by the people who live or work in a county, metropolitan area, or BEA economic area. These estimates provide a framework for the analysis of each area's economy, and they serve as a basis for decision making. For example:

* Federal Government agencies use the estimates in econometric models, such as those used to project energy and water use.

* State governments use the estimates to measure the economic base of State planning areas. State and local governments also use the estimates in econometric models to project tax revenues and the need for public utilities and for services.

* Academic researchers use the estimates for theoretical and applied economic research.

* Businesses, trade associations, and labor organizations use the estimates for market research.

* The public and private sectors both use the estimates to prepare environmental impact statements required by the National Environmental Policy Act of 1969.

Availability

The annual local area personal income estimates, as well as regular and special analyses of the estimates, are published in the SURVEY OF CURRENT BUSINESS, the monthly journal of the Bureau. Examples of articles involving detailed analyses include:

* "Local Area Personal Income, 1998-2000," by Jeffrey L. Newman in the May 2002 SURVEY

* "Comprehensive Revision of Local Area Personal Income: Revised Estimates for 1969-97 and New Estimates for 1998," by Jeffrey L. Newman, et. al., in the July 2000 SURVEY

* "Manufacturing Earnings in BEA Component Economic Areas, 1996," by G. Andrew Bernat, Jr. in the November 1998 SURVEY

* "Redefinition of the BEA Economic Areas," by Kenneth P. Johnson in the February 1995 SURVEY

SURVEY articles for recent years are available on our Web site at <www.bea.gov>. In addition, the estimates and methodology are available in an interactively accessible database and in downloadable files on our Web site. The entire database and statement of the sources and methods used to produce the estimates are presented annually on the "Regional Economic Information System" (REIS) CD-ROM.

For more information

Call the Regional Economic Information System (REIS) staff at 202-606-5360, or e-mail <reis.remd@bea.gov>. To purchase the REIS CD-ROM, call our Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666).