Allocation procedures

Allocation procedures are used in the derivation of the estimates of state and county personal income, because the data that are available for many of the components of personal income at the state and county levels may not be as comprehensive or as reliable as the data that are available at the national level. The national estimate of a component is allocated to the states in proportion to the states' shares of an economic, or allocating, series that is a measure of the component or that is related to the component that is being allocated; the state estimates are then allocated to counties. For example, the national estimate of personal dividend income received by individuals is allocated to the states-- and the state estimates are allocated to counties-- in proportion to the series for dividends reported by individuals on their Federal income tax returns.