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“Looking Ahead"

BEA Regional Data Developments Going Forward

James M. ZavrelNavigating the Nevada Economy

Reno, NV

September 29, 2009

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Recent Improvements—New Products

▪Advance personal income for metropolitan areas in August 2009 Expanded data—Earnings by sector

▪Disposable personal income for metros Data through 2007 Working paper on BEA Website

▪Regional Price Parities “Comparing Price Level Differences

Across Geographic Areas” Nov. 2008 Survey of Current Business

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Comprehensive Revision

▪Changes in definitions, in sources and methods, and in presentation Occur about every 5 years Provide opportunity to make accounts

reflect the changing economy

▪National release on July 31st▪State to release October 16th▪1st county release in December

(compensation)

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Comprehensive Revision

Changes in definitions Treatment of disasters

Value of damage to fixed assets will no longer be recorded as consumption of fixed capital

No current period measure of production or income will be affected by disasters

Disaster-related insurance payouts will be treated as capital transfers

March 2009 Survey of Current Business p. 11

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Comprehensive Revision

▪Statistical and methodological changes May 2009 Survey of Current Business Wages and salaries

Employee contributions to IRS section 125 (cafeteria) plans

28 states currently don’t report as wages Nevada—no Idaho—no Montana—yes Oregon—no Washington—yes

2-3 % of wages

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FY 2008 Budget Impact

▪FY 2008 budget reductions affected BEA

▪County industry detail has been reduced From subsector to sector level for 2008 First release impacted—August 2009

personal income for metropolitan areas Full description of budget impact on

BEA Web site

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FY 2010 Budget Initiatives

▪Restore the substate subsector earnings and compensation Cut in FY2008

▪Accelerate county personal income release to 10 months after calendar year

▪GDP by county▪Price-adjusted measures of income

& product

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Future Research Interests

▪ Improve county suppression system▪Pension satellite account

Retirement income distributions by state Working paper on BEA website– “Accrual

Measures of Pension-Related Compensation and Wealth of State and Local Government Workers”, August 2009

▪Development of product-side estimates Personal consumption expenditures State government receipts and

expenditures▪Gross output and double deflation