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<br />4. Deflation of Government Earnings . <br />Does the government earnings deflation proce.dure have a <br />differential regional effect in projected regional earnings where <br />the number of government employees differ? <br /> <br />I <br />I <br />~ltJ0 <br />~~i <br /> <br /> <br />~%} <br />'fi$ff{ <br />f~~ <br /> <br />0029H <br /> <br />No. While government earnings are deflated differently <br />from other industry earnings at the national level, earnings <br />GPO relationships for all industries were worked out with <br />current .dollar data so that earnings per worker in government <br />increase along with earnings per worker in other industries. <br /> <br />5. 1967 VS 1958 Dollars <br />Why was $1958 used in Volume 1 and $1967 in the other <br />volumes? <br /> <br />Volume 1 gives gross national product, and total personal <br />income and earnings in relation to GNP. The national income <br />and product accounts, from which GNP comes, are still.ex- <br />pressed in 1958 dollars. The conversion of the national income <br />and product accounts to 1967 doll ars would require the derivation <br />of a new deflator series for each industry calculated by. valuing <br />the output of each industry in 1967 prices. This is along and <br />costly process. <br /> <br />On the other hand, the earnings in anyone industry will pur- <br />chase the same quantity of goods as equal earnings from any other <br />industry. Therefore, one deflator series applies to all industries. <br />The personal consumption expenditure deflator was used for all <br />industries in all regions. Dividing earnings expressed in 1967 <br />dollars by 1.144 will convert the earnings to 1958 dollars. <br /> <br />The income in Volumes 2, 3, and 4 were expressed in1967 <br />dollars as the result of requests from the field users to express <br />income in more nearly current dollars. 1967 was selected for <br />two reasons: (1) 1967 data was the last year of historical data <br />used in making the projections and (Z) 1967 was selected by OMB <br />as a base year for indices prepared by Federal agencies. <br /> <br /> <br />- 10 <br /> <br />~~~ <br />?;'i~:,:t.': <br />~;~r;~.{.:..o; <br />ifif;~ <br />fi~~~~::~j <br /> <br />;_::-/r~,:r_::;~ <br />~.t~i~{::i: <br /> <br />.'~-...'-----_: <br />J"_..._......_-. <br /> <br />", ....; <br />::.::;-".:'::::~. <br />". - .".: .~ <br />;;:::.:..;::-...... <br /> <br />~~~~~~11,_~~t~'W.;~~J'1f~I!~~ <br />