Estimating Other Final Demand: Capital, Inventory, and Private Enterprise


In addition to demand from outside the region (exports) and demand by Households and Governments (for local final consumption), additional Institutions and Final Demand categories include Capital (investment expenditures), Inventory (additions/deletions), and Private Enterprise.

This article describes the data sources and estimation procedures for Capital, Inventory, and Private Enterprise in IMPLAN. For more information about these components see Additional Final Demand Basics: Capital, Inventory, and Private Enterprise. For more detailed information of how these Institutions are presented in the IMPLAN SAM, see Elements of the IMPLAN SAM.



Industry capital expenditures include new construction and purchases of capital goods by all non-government (private) investors. Capital expenditures are largely made up of equipment, software, and construction. The dollar values in the IMPLAN database are expenditures made to a specific industrial Industry producing the capital equipment. These values do not represent capital investment by that industrial Industry. In other words, we only know the investment demand by all private Industry. There is no data that shows how much a particular Industry invested. However, IMPLAN does provide special Investment Spending Patterns by 4-digit NAICS Industry Group that can be imported and used for analysis. These investment patterns are available for Furniture, Fixtures, and Equipment (FF&E) and Construction and FF&E, combined. These spending patterns can be put into IMPLAN by analyzing a list of the associated Commodity Events (these can be copied about pasted into a the Commodity Event tab of the Event Template). Note that the investment rates included in this download file are in Producer Prices and should be reflected as such in the Margin option for the Commodity Output Events derived from them.

We use current-year Bureau of Economic Analysis’ (BEA) National Income and Product Accounts (NIPA) investment data by Industry (aggregated at a high-level) making the investment and allocate that to more detailed Industries according to the latest Benchmark I-O tables.

Non-structure capital expenditures are estimated at the national level using BEA’s NIPA table 5.5.5. (Private Fixed Investment in Equipment and Software) bridged to IMPLAN sectoring based on data from the latest BEA Benchmark. National values are distributed to states and counties based on total Output of all new construction Industries combined. This implies that a purchase of capital goods within a state or county is linked to overall construction activity within that area. For example, a county containing 0.3% of the national new construction Output would receive 0.3% of the national capital expenditures for all non-construction Industries.

Investment in structures comes from the Census Bureau’s Annual Value of Construction put in place (by government type, controlled to total government gross investment from NIPA table 3.9.5.), and NIPA Table 5.4.5. (Private Fixed Investment in Structures by Type). Because all new construction is considered investment, the U.S. value for structural investment in each type of structure equals the Output in that IMPLAN Industry. Thus, national investment values for these Industries are distributed directly to states and counties based on their Output in each specific new construction Industries.


Payments by Capital to other Institutions represent net borrowing of money by that Institution. Payments by other Institutions to Capital represent net savings by that Institution. The Capital accounts are a balancing item that is allowed to float when constructing a Region’s SAM. If the other elements are specified correctly, the capital accounts will be accurate. For more detailed information of how these Institutions are presented in the IMPLAN SAM, see Elements of the IMPLAN SAM.


Additions to inventory include both finished and unfinished goods. Inventory sales occur when Industries sell more than they produce and inventory stocks decrease over the year, whereas inventory purchases occur when Industries produce more than they sell and inventory stocks increase. Inventory purchases and sales generally involve goods-producing Industries as opposed to service Industries. IMPLAN inventory sales and purchases are net values, meaning that for a given Commodity and year there will be either inventory sales or inventory purchases, not both.

For the Manufacturing Industries, the Annual Survey of Manufactures provides inventory data. Other sectors' inventory data are derived from BEA Benchmark I-O ratios. All Industries are controlled to the BEA’s NIPA accounts for the current data year. National values are distributed to states and counties on the basis of total Industry Output for the Region.


The private enterprise Institution represents incorporated businesses (not proprietorships). It receives income in the form of returns to capital and depreciation allowances. Enterprise income consists entirely of corporate profits.

The entire value of the Private Enterprise account comes from the BEA’s NIPA “Corporate Profits with IVA and CCA” portion of Other Property Income (OPI). The Private Enterprise account in turn distributes that value to Households (dividends and farm subsidies), Government (dividends and corporate profits taxes), Foreign Trade (corporate profits taxes), and Capital (retained earnings). National values are distributed to states and counties on the basis of total Industry Output for the Region.


Additional Final Demand Basics: Capital, Inventory, and Private Enterprise Basics

Elements of the IMPLAN SAM Tables


Written April 18, 2024

Updated May 15, 2024