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State personal income, revised estimates for 1990-92.

THIS ARTICLE presents revised annual estimates of State personal income for 1990-92. It summarizes the revisions and then gives brief definitions of total and disposable personal income. At the end of the article, table 1 presents the revised estimates of total and per capita personal income, table 2 presents the revised estimates of total and per capita disposable personal income, and table 3 presents the revised estimates of personal income by major source and of earnings by industry.

This annual revision of the State estimates of personal income incorporates results from the annual revision of the U.S. national income and product accounts (NIPA's) that was published in last month's Survey of Current Business.(1) Specifically the annual NIPA revision provided revised "control totals" for national personal income and its components. The revised control totals for total personal income, shown in the first line of table A, do not reflect the $50 billion upward revision to the NIPA estimates of wages and salaries for 1992 that resulted from the incorporation of Bureau of Labor Statistics tabulations of State unemployment insurance data; these tabulations had already been incorporated into the State estimates in July.(2)

In addition to the incorporation of the NIPA revision, this annual revision incorporates more current State-level source data and revised State-level estimating methods; these State-level revisions affect the way the revised national control totals are distributed to the States. For wages and salaries, other labor income, and personal contributions for social insurance, the 1992 estimates reflect more detailed estimating methods. For farm proprietors' income, the 1992 estimates reflect newly available estimates of farm income for 1992 prepared by the U.S. Department of Agriculture (USDA), and the 1991 estimates, which were revised sharply in some States, reflect methodological improvements made by USDA to its estimates for 1991. For nonfarm proprietors' income, the 1990-92 estimates are now based partly on newly available data for 1990 on the number of small establishments by industry from the Census Bureau's County Business Patterns. For the net rental value of owner-occupied nonfarm dwellings (imputed rent), the 1990-92 estimates are now based partly on newly available data by census region for 1991 from the Census Bureau's biennial American Housing Survey. For dividends, interest, and monetary rent, the 1991-92 estimates are now based mainly on newly available tabulations of individual income tax return data for 1991 from the Internal Revenue Service. For transfer payments, the 1992 estimates are now based mainly on newly available data for 1992 on the amounts of benefits provided to individuals under Federal and State programs; the data are from the agencies that administer the benefit programs.

Table A presents, for 1990-92, the previously published and revised annual estimates of State personal income and the amounts of the revisions.(3) The upward revisions for the Nation, stemming from the annual NIPA revision, led to upward revisions for all regions but New England, where all the States had downward revisions to personal income in all 3 years, and the Southeast, where 7 of the 12 States had downward revisions in 1990. The downward revisions for New England and the Southeast are accounted for by downward revisions to nonfarm proprietors' income and imputed rent that resulted from the introduction of more current State-level source data. For the Southeast in 1991-92, the downward revisions to nonfarm proprietors' income and imputed rent were more than offset by upward revisions to other components of personal income.

[TABULAR DATA A OMITTED]

Definition of total and disposable personal income

The personal income of a State is defined as the income received by, or on behalf of, all the residents of the State. It consists of the income received by persons from all sources--that is, from participation in production, from both government and business transfer payments, and from government interest (which is treated like a transfer payment). "Persons" consists of individuals, nonprofit institutions that primarily serve individuals, private noninsured welfare funds, and private trust funds.

Personal income is calculated as the sum of wage and salary disbursements, other labor income, proprietors' income, rental income of persons, personal dividend income, personal interest income, and transfer payments to persons, less personal contributions for social insurance. State per capita personal income is calculated as the personal income of the residents of a State divided by the midyear resident population of the State.

Disposable personal income is calculated as personal income less personal tax and nontax payments; it is the income available to persons for spending or saving. Personal tax and nontax payments consists of tax payments that are not chargeable to business expense and of certain other payments to government agencies (except government enterprises) that are treated like taxes. Personal taxes includes taxes on income, including realized net capital gains, taxes on transfers of estates and gifts, and taxes on personal property. Personal nontaxes includes donations and fees, fines, and forfeitures. State per capita disposable personal income is calculated as the disposable personal income of the residents of a State divided by the midyear resident population of the State.

These definitions are essentially the same as those underlying the personal income estimates in the NIPA's. However, the State estimates of personal income exclude the labor earnings (that is, wages and salaries and other labor income) of U.S. residents who are temporarily working and living abroad (mainly Federal civilian and military personnel), whereas the NIPA estimates include these labor earnings.

In addition, the national totals of the components of the State estimates may differ from the corresponding estimates in the NIPA personal income series because of different data sources and revision schedules.

Acknowledgments

The revised estimates of State personal income were prepared by the Regional Economic Measurement the direction of Linnea Hazen, Chief. The preparation of the estimates was a divisionwide effort. Estimates of nonfarm labor earnings (wages and salaries and other labor income) were prepared by the Branch under the supervision of Sharon C. Carnevale, Chief. Major responsibilities were assigned to Michael G. Pilot, John A. Rusinko, and James M. Scott. Contributing staff members were E. Frances Ba T. Berry, Elizabeth P. Cologer, Susan P. Den Herder, Elizabeth A. Freeman, Lela S. Lester, Russer C. A. Lutyk, Paul K. Medzerian, Michael Phillips, Adrienne T. Pilot, William E. Reid, Jr., Dolores A. R Sahadachny, Eugene L. Souder, Darleen K. Won, and Jaime Zenzano.

Estimates of farm earnings (wages and salaries, other labor income, and proprietors' income), pers payments, and the residence adjustments were prepared by the Quarterly Income Branch under the super Robert L. Brown, Assistant Division Chief. Major responsibilities were assigned to James M. Zavrel. members were Elaine M. Briccetti, Daniel R. Corrin, Richard H. Grayson, and Michael S. Wagner.

Estimates of nonfarm proprietors' income, dividends, interest, rent, transfer payments, and person for social insurance were prepared by the Proprietors' Income Branch under the supervision of Bruce Major responsibilities were assigned to Charles A. Jolley. Contributing staff members were Catherine Toan A. Ly, Ellen M. Wright, and Marianne A. Ziver.

The assembly of public use tabulations and data files and the preparation of the text and tables f were performed by the Regional Economic Information System Branch. Major responsibilities were assig A. Albetski, Wallace K. Bailey, and Gary V. Kennedy. Contributing staff members were H. Steven Dolan Johnson, Jeffrey L. Newman, Michael J. Paris, Albert Silverman, Callan S. Swenson, Hilda G. Tolson, and Mary C. Williams.

Schedule for Revisions of State and Local Area Personal Income

The most recent comprehensive revision of the State personal income estimates has now been completed with the revision of the estimates for 1929-68; these estimates reflect the definitional and statistical changes that were incorporated into the estimates for 1969-91 in August 1992 (see "The Comprehensive Revision of State Personal Income" in the August 1992 Survey of Current Business. For information on obtaining the revised estimates, see the box "Data Availability." In April 1994, the State and local area estimates for 1981-92 Will be further revised to incorporate source data that became available too late for the comprehensive revision. These data include journey-to-work data from the 1990 Census of Population, production expense data from the 1987 Census of Agriculture, and tax-return data from the Internal Revenue Service on the income of sole proprietorships and partnerships for 1987-89.

Data Availability

The State personal income estimates presented here, as well as more detailed tabulations and estim on magnetic tape, printouts, and diskettes. Tables of total and per capita personal income are avail and tables of total and per capita disposable personal income are available for 1948-92.

Detailed estimates of personal income by major source and of earnings by industry are available fo for 1958-92 present labor and proprietors' earnings at the Standard Industrial Classification (sic) example, food stores) based on the 1967 SIC for 1958-74, the 1972 SIC for 1975-87, and the 1987 sic for 1929-57 present earnings at the sic division level (for example, total retail trade) based on th

Supplemental tables are available for wages and salaries by sic two-digit industry for 1958-92, em including or excluding self-employment) by SIC two-digit industry for 1958-92, transfer payments by for 1948-92, farm income and expenses (including broad categories of gross receipts and expenses of different measures of net farm income) for 1969-92, and personal tax and nontax payments by level of by type for 1948-92.

A magnetic tape containing a complete set of the State annual estimates costs $100. Printouts are number of pages, and diskettes by the number of diskettes; thus, the cost of an order depends on the areas, and years of data ordered. There is a minimum charge of $10.00 per order.

The State estimates of personal income and employment for 1969-89-in somewhat less detail than tha above--are also available on the Regional Economic Information System CD-ROM for $35. (The State est 1990-91 on the CD-ROM have been superseded by the revised estimates presented in this article.) The contains the entire set of personal income and employment estimates for counties and metropolitan ar

For further information or to place an order, call (202) 606-5360 or write to Regional Economic In BE-55, Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230. (1.) "Annual Revision of the U.S. National Income and Product Accounts," Survey 73 (August 1993): 9-51. (2.) Because the preliminary annual and quarterly State estimates of wages and salaries are prepared after the corresponding national estimates, the State estimates may incorporate source data that were not available at the time the national estimates were prepared. For a detailed discussion of the incorporation of the unemployment insurance tabulations for 1992, see "Note on Revisions to BEA Estimates of Wages and Salaries," Survey 73 (July 1993): 28-29. (3.) The 1992 State estimates were previously published in the July 1993 Survey, and the 1990-91 estimates, in the April 1993 Survey.
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Publication:Survey of Current Business
Date:Sep 1, 1993
Words:1799
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