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Acknowledgments US Department of Transportation - BTS

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Appendix EData Source and Accuracy StatementsChapter 3 <strong>Transportation</strong> and the EconomyTABLE 3-1 & 3-2. U.S. Gross Domestic Product Attributed to For-Hire <strong>Transportation</strong> Services(Current and chained 2005 dollars)TABLE 3-3 & 3-4. U.S. Gross Domestic Product Attributed to <strong>Transportation</strong>-Related Final Demand(Current and chained 2005 dollars)TABLE 3-5 & 3.6. U.S. Gross Domestic Demand Attributed to <strong>Transportation</strong>-Related Final Demand (Currentand chained 2005 dollars)TABLE 3-7 & 3-8. Contributions to Gross Domestic Product: Selected Industries (Current and chained 2005dollars)TABLE 3-9. Gross Domestic Product by Major Social FunctionTables 3-1 through 3-8 present data on transportation's contributions to the economy through consumption (or themoney spent on transportation activity). The Survey <strong>of</strong> Current Business (SCB) published by the U.S. <strong>Department</strong> <strong>of</strong>Commerce, Bureau <strong>of</strong> Economic Analysis (BEA). The SCB is a monthly journal that contains estimates <strong>of</strong> U.S.economic activity, including industry contributions to the Gross Domestic Product (GDP). GDP is defined as the netvalue <strong>of</strong> the output <strong>of</strong> goods and services produced by labor and property located in the United States. BEAconstructs two complementary measures <strong>of</strong> GDP-one based on income and the other on expenditures (product).Together, they represent the National Income and Product Accounts (NIPA), our nation's principle framework formacroeconomic estimates. The product side results from the addition <strong>of</strong> labor, capital, and taxes for producing output.Consumption derives from household, business, and government expenditures and net foreign purchases.Tables 3-5 and 3-6 present transportation's economic impact in a different form, Gross Domestic Demand (GDD).Also derived from the national accounts, GDD is the sum <strong>of</strong> personal consumption, gross private domesticinvestment, and government purchases. GDD includes imports, but excludes exports, thus counting only what isconsumed, purchased, or invested in the United States.GDP MethodologyThe 1960 through 1985 data in table 3-1 are from the November 1993 issue <strong>of</strong> the SCB. The 1990 through 1991 dataand 1992 through 1996 data are from an August 1996 and November 1997 SCB issue respectively. The October1999 issue introduced a revised methodology for GDP estimates (Yuskavage 1996). This section describes BEA'smethodology for estimating transportation's share <strong>of</strong> GDP.BEA's current-dollar estimates <strong>of</strong> GDP by industry rely on several sources, including the Bureau <strong>of</strong> Labor Statistics(BLS), the Health Care Financing Administration, and the Internal Revenue Service (IRS). Some <strong>of</strong> the tables in thischapter report chained-dollar figures. BEA derived chained dollars by using the Fisher Ideal Quantity Index tocalculate changes between adjacent years (Parker and Triplett 1996; Landerfeld and Parker 1997). Annual changesare then chained to form a time series that incorporates the effects <strong>of</strong> relative price and output composition changes.Please refer to page 142 <strong>of</strong> the August 1996 issue <strong>of</strong> the Survey <strong>of</strong> Current Business for the mathematical formulas(Yuskavage 1996). This method produced separate estimates <strong>of</strong> gross output and intermediate inputs for a sector'sGDP calculation. BEA updated the reference year for the chained-dollar estimates from 1992 to 1996.<strong>Transportation</strong> GDP in chained dollars was estimated using the double-deflation method, which relies on a chain-typequantity index formula, and requires gross output and intermediate input information. Principal source data for thetransportation categories include: 1) operating revenues <strong>of</strong> air carriers and Federal Express from the U.S.<strong>Department</strong> <strong>of</strong> <strong>Transportation</strong> and public sources (air); 2) operating revenues for Class I motor carriers from historicalrecords <strong>of</strong> the Interstate Commerce Commission and Census Bureau annual surveys (trucking and warehousing); 3)

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