Institutional Transfers

Comments

7 comments

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    jenny
    This value is based on NIPA Table 1.12, line 24. It is net transfer to foreign sources; so because it is negative this year, it implies a net payment from foreign sources to local businesses.
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    hfwill
    What is it a payment for? How does it relate to household income? What table and line is it tied to in the BEA regional accounts?
  • Avatar
    jenny
    According to page 11 of this [url=http://www.bea.gov/national/pdf/nipaguid.pdf]document [/url], business current transfer payments to the rest of the world (net) consists of net insurance settlements paid to the rest of the world as policyholders. However, according to page 15 of this [url=http://www.bea.gov/scb/pdf/2009/03%20March/0309_nipa_preview.pdf]document [/url] describing the revision of the NIPAs, business current transfer payments to the rest of the world (net) no longer include net insurance payouts to persons, to business, and to the rest of the world, which are now reclassified as capital transfers. Yet there is still a vallue for this line item, so it must consist of something else besides net insurance settlements, although a lengthy search on our part has not yielded a satisfactory explanation. Please let us know if you find any additional information and we will surely do the same.
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    hfwill
    I don't believe we are talking about the same thing. What I'm asking about is OPTI payment to Domestic Trade/Factor Trade. This suggests that it is a payment to capital--however, in the instances I'm looking at it is a negative value, which suggests to me that it is somehow a "net" factor payment to capital between the region (here the state of Florida) and the rest-of-US--Transfer Type #15037. What you are referring to I believe would show up under Transfer Type #15010, which doesn't exist for Type Code #28001 in the SAM I'm looking at.
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    jenny
    I apologize; I thought you were referring to the OPTI payment to Foreign Trade rather than Domestic Trade. In the case of the payment to Domestic Trade, there is no NIPA value corresponding to this at the U.S. level because there is no domestic trade at the U.S. level. So at the sub-U.S. level, it is just a balance to ensure that the OPTI column sum (OPTI payments) equals the OPTI row sum (OPTI receipts). In a sense, it is a balance between the region and the rest of the U.S. (theoretically, if you sum this value for all states, it should sum to 0).
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    hfwill
    So, is the interpretation I've suggested correct--that it reflects the net difference between factor payments to capital to owners outside the state less factor payment from capital outside the state to owners in the state? Thanks for your patience with all these questions!
  • Avatar
    jenny
    Yes, looks good!

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