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Converting Purchaser Price to Producer Price for Sectors
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Author:  KaiserGP [ Fri Jan 14, 2011 12:41 pm ]
Post subject:  Converting Purchaser Price to Producer Price for Sectors


I am trying to convert purchaser price to producer price for about 80 different industry sectors. What would be the best way for me to go about doing this?

I read this response on the BEA website:

"How can I convert data from producers’ to purchasers’ prices?

For the 1997 Benchmark, the easiest method is to click on the purchasers’ prices button in the interactive I-O table menu found after selecting the desired table at http://www.bea.gov/industry/iotables/. Conversion from a downloaded benchmark data is more complicated. To get from producers' prices to purchasers' prices, you have to add transportation costs and wholesale and retail margins to each cell in the matrix. Then you have to remove the same amount from the transportation and wholesale and retail rows in the matrix. Some value will remain in the transportation row, for example, for passenger transportation, and some value will remain in the wholesale and retail rows, because not all the output of those industries is associated with moving goods. In the 1997 tables, the files called NAICSUseDetail.txt* or IOUseDetail.txt* both give the detailed transportation and margins for each cell. The value of the cell in purchasers’ prices is also given (field 15).

Note: The above-mentioned files, NAICSUseDetail.txt and IOUseDetail.txt are available in the EXE and ZIP files named ndn0306 and ndn0307, respectively. See the second and the third entries on the Web page for Benchmark Input-Output Data at http://www.bea.gov/industry/io_benchmark.htm.

http://www.bea.gov/faq/index.cfm?faq_id ... 0&cat_id=0


I generated these interactive IO tables to show purchaser prices instead of producer prices like they mentioned, but I don't understand how those numbers actually work to convert a price. For example, if I have $1000 of purchaser price in oilseed farming, how would I use that IO table in purchaser price to convert from producer price to purchaser price? I think I am missing some very important connection...

Please help!

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