Royalty
Payment for the use of patented or copyrighted materials and for similar rights. These payments are treated as income from property. (BEA)
Retail margin
The markup to the price of a product when a product is sold through a retail trade activity. It is calculated as sales receipts less the cost of goods sold. Sales and excise taxes collected by the retailer are generally shown as a part of the retail margin. (BEA)
Rest of World Adjustment
The rest-of-the-world adjustment to final uses consists of values for exports and imports that have offsetting adjustments to personal consumption expenditures (PCE) and government. This adjustment is required in order to conform the commodity treatment of the I-O use table to the expenditure concepts used for final uses in the NIPAs. This is accomplished by making offsetting adjustments between PCE and gross exports and between Federal Government nondefense purchases and exports and imports. For example, foreigners traveling in the United States consume goods and services, such as accommodations, that are included in the source data for PCE. In order to put the PCE estimate on a NIPA basis, an adjustment is made to account for these purchases. (BEA)
Requirements tables
There are four I-O requirements tables: Commodity-by-industry direct requirements, commodity-by-commodity total requirements, industry-by-commodity total requirements, and industry-by-industry total requirements. (BEA)
Regional Supply Coefficient (RSC)
The RSC, also known as the Local Use Ratio, indicates the proportion of local net supply of a commodity that goes to meet local demands. It is calculated by dividing Local Use of Local Supply by Local Net Commodity Supply. Local Net Commodity Supply is the amount of total local commodity supply that is used domestically (i.e., total local commodity supply less foreign exports).
Regional Purchase Coefficient
A Regional Purchase Coefficient (RPC) is the proportion of the total demand for a commodity by all users in the Study Area that is supplied by producers located within the Study Area. For example, if the RPC for the commodity fish is 0.8, then 80% of the demand by local fish processors, fish wholesalers, and other fish consumers are met by local fish producers. Conversely, 20% (1.0-RPC) of the demand for fish is satisfied by imports. (IMPLAN) See Also: V2 Econometric RPC Method; IMPLAN Trade Flows Model
Redefinitions
Redefinitions, one of the three methods for handling secondary products, are made as part of the preparation of the supplementary I-O make and use tables. Redefinitions are made when an industry’s production of a secondary product requires very different inputs than those for the production of its primary product. In such a case, the economic activity (employment, value added, and output) associated with the secondary product is moved (i.e., redefined) from the industry in which the output occurs to the industry in which the product is primary. For example, any construction work performed by employees of non-construction sectors is shifted from the non-construction sectors to the appropriate construction sector. This same process is used for several other types of activities as well, such as the transfer of food service activity from the lodging and other sectors to the food services and drinking places sector. Redefinitions do not affect the definition of the commodity or the measurement of commodity output, which consists of all of the output of that commodity wherever it is produced. However, redefinitions do affect industry output.
Reclassification
Reclassifications, one of the three I-O methods for handling secondary products, are made as part of the preparation of the standard I-O make and use tables. Reclassifications are made when BEA decides that a product that the Census Bureau has designated as a primary product should instead be treated for I-O purposes as a secondary product. For example, in the Census Bureau classification system, the primary product of the newspaper industry is defined as newspaper sales and newspaper advertising. In the I-O system, the primary product of the newspaper industry is newspapers, and the advertising is treated as a secondary product of the newspaper industry and is reclassified to the advertising commodity. Reclassifications are also made when a product is primary to more than one industry—that is, the final product is the same but it is made using different production processes. In these cases, BEA groups the output in the commodity where the largest amount of it is produced. For example, sheets can be made in knitting or weaving mills or from purchased fabric. For the I-O accounts, all sheets are treated as a single commodity and are shown as the product of curtain and linen mills. Reclassifications do not affect the definition of the industry or the measurement of industry output, which consists of the output of both the primary and the secondary products of that industry. However, reclassifications do affect the definition of the commodity and the measurement of commodity output. (BEA)
Reallocation
The inputs that are reassigned along with the redefined output of secondary products. Both intermediate inputs and value-added components are reallocated in moving from the use table before redefinitions to the use table after redefinitions. They are subtracted from the industry that produced the secondary product and added to the industry for which the product is primary. The sum of the reallocations must be equal to the value of the redefined output. (BEA)
IMPLAN
Economic input output
modeling application, data,
and solutions.
