Differences between PCE and household consumption

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danmartin@oxfordeconomics

• June 06, 2016 15:18

Could you comment on the sources of differences between the BEA's Personal Consumption Expenditures data and the Household purchases in the national IMPLAN model? For example, I see that PCE for 2014 were $11.9 trillion, whereas total household consumption in IMPLAN was $11.2 trillion. I don't doubt there are good reasons for the differences, I just want to understand what they are. If there's already a page that explains this somewhere, feel free to just link me to it. Thanks!

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  IMPLAN Support

  • June 07, 2016 17:11

  Hi Dan! Thank you for your forum post. Would you mind providing us with additional information as to where you are seeing this value and/or you could also send us your model. You can email it to info@implan.com I have included two articles below which describe how we create the spending. http://implan.com/index.php?option=com_content&view=article&id=288 http://implan.com/index.php?option=com_content&view=article&id=380 Thanks!

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  danmartin@oxfordeconomics

  • June 07, 2016 18:36

  Sure. I'm comparing the BEA PCEs in, for example, table 2.3.5 here: http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1 with the household spending for the 2014 national model in the online software, i.e. the total of the Household column under Model Overview -> Social Accounts -> Institution Local Commodity Demand. I know it's possible to translate the BEA PCE's into NAICS sectors using their bridge table, and then I could compare these line by line with IMPLAN. But right now I'm just trying to understand the aggregate numbers--since they're $700 billion off, there must be important definitional differences. I will email this as well.

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  IMPLAN Support

  • June 09, 2016 03:43

  Hi Dan, As you can see in the Model Overview GRP section the Household Final Demand in the Model is 11.9BB. You can duplicate that number (and thus see how it is derived in the Study Area Data>Household Commodity Demand sheet as this sheet represents Gross Demands. The Social Accounts -> Institution Local Commodity Demand shows the value of demand that can be provided locally, or in this case because it is the U.S. Total file, domestically. The difference you are seeing is the Household Demand met by foreign imports. Hopefully this helps --Implan Support Staff

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  danmartin@oxfordeconomics

  • June 09, 2016 13:00

  Thanks! I knew there was something I wasn't getting, and that's exactly the sort of thing it was sure to be.

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