OVERVIEW

Deflators are included in all IMPLAN models and databases. Deflators allow analysts to adjust economic data points for inflation by converting values expressed in nominal dollars (not adjusted) to real dollars (adjusted). Note, however, that deflators in IMPLAN are not regionally specific. 

Read more about the importance of Deflators for analysis. 

DEFLATOR DATA SOURCES

Output deflators are Industry-specific and are used to adjust Industry Output. The Bureau of Economic Analysis (BEA) provides historical Output deflators which we use for past to current years. The BEA Output deflators are provided with the BEA Gross Output data.

Gross Domestic Product (GDP) deflators are not Industry-specific and are used to adjust Final Demand and Value Added. The BEA also has historical GDP deflators which we use for past to current years. The BEA GDP deflators come from NIPA Table 1.1.9 - Implicit Price Deflators for Gross Domestic Product. 

For projections into the future, we use the annual rate of change from the time-series of Output estimates obtained from the Bureau of Labor Statistics (BLS) Employment Growth Model. The Outputs are projected in real and constant dollars. This gives implicit price index projections which are the basis for projections of the IMPLAN deflators.

Both the BEA and BLS deflator data have fewer Industries than the IMPLAN Industry scheme; therefore, all IMPLAN Industries within a single BEA or BLS Industry will have the same deflator. 

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Deflators

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Written April 18, 2024