Comprehensive revision of gross state product by industry, 1977-94 - U.S. Bureau of Economic Analysis - includes related article on data availability, GSP estimate release schedule and revision acknowledgements

Survey of Current Business, June, 1997 by Howard L. Friedenberg, Richard M. Beemiller

For the revised GSP estimates, the following major new source data are incorporated: Additional State data on sales, on sales taxes, and on gross receipts taxes to estimate indirect business tax and nontax liability; additional State data on income and expenses by company to estimate other capital charges for the transportation and public utilities industry; State data on receipts and payrolls to estimate other capital charges for the private services-producing industries that were covered by economic censuses for the first time in 1992; and State data on Federal Government and State and local government employment to estimate the consumption of fixed capital by government.(22)

Next, the source data and estimating procedures are discussed by component for the revised set of GSP estimates.

Compensation of employees

The annual estimates by State and industry of two components of compensation of employees--wage and salary accruals and other labor income are based on BEA'S State personal income series.(23) Wage and salary accruals are then used to allocate to States employer contributions for social insurance--the component of compensation of employees not measured in the personal income series.(24)

Indirect business tax and nontax liability

Indirect business tax and nontax liability consists of a State and local government component and a Federal Government component. The State and local government component mainly consists of 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 State estimates by industry are based on Census Bureau data on taxes collected by type and State, which are controlled to BEA national totals of taxes collected by type and industry. For taxes on farm property, annual estimates by State are based on data from the U.S. Department of Agriculture (USDA), and for taxes on residential property, the 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, which are controlled to national totals by industry and to special tabulations by State and industry that are prepared from State tax collection reports.

The Federal Government component consists of nontax liabilities and excise taxes on goods and services. The data used to estimate excise taxes and selected nontax liabilities are shown in table 7. Other nontax liabilities are estimated using BEA estimates of compensation of employees.

[TABULAR DATA 7 NOT REPRODUCIBLE IN ASCII]

Other GSP

Other GSP consists of proprietors' income and other capital charges. Proprietors' income is based on BEA'S State personal income series.

For other capital charges, the source data and estimating procedures vary. For about one-half of the 63 industries for which GSP estimates are prepared, the source data and procedures used for estimating other capital charges for benchmark years are also used for some or all nonbench-mark years' for the nonbenchmark years for which the benchmark-year procedures cannot be used, the estimates are interpolated or extrapolated from the benchmark-year estimates (for the source data used, see table 8). For the benchmark years, the procedures used to estimate other capital charges for an industry largely depend on the source data available for that industry.