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Glossary "R"

Recession. In general usage, the word recession connotes a marked slippage in economic activity. While gross domestic product (GDP) is the broadest measure of economic activity, the often-cited identification of a recession with two consecutive quarters of negative GDP growth is not an official designation. The designation of a recession is the province of a committee of experts at the National Bureau of Economic Research (NBER), a private non-profit research organization that focuses on understanding the U.S. economy. The NBER recession is a monthly concept that takes account of a number of monthly indicators—such as employment, personal income, and industrial production—as well as quarterly GDP growth. Therefore, while negative GDP growth and recessions closely track each other, the consideration by the NBER of the monthly indicators, especially employment, means that the identification of a recession with two consecutive quarters of negative GDP growth does not always hold. For information on recession, or business-cycle, dating, see: http://www.nber.org/cycles/jan08bcdc_memo.html. Related terms: Gross domestic product (GDP), Personal income.

Reclassification. An adjustment made to the input-output (I-O) accounts when there are two or more industries whose primary activity is the production of similar commodities and the commodities differ only in the process used to produced them. The output of one commodity is moved (ôreclassifiedö) to be part of the output of the other, similar commodity. Total output for the affected industry remains unchanged; however, output for each affected commodity group changes.

Redefinition. An adjustment made to the input-output (I-O) accounts when a secondary product is assumed to have very different inputs than the other products of the producing industry. The secondary product (output and inputs) is moved (ôredefinedö) to the industry to which the product is primary. The adjustment is necessary to attain a homogenous input structure for the commodities produced by an I-O industry.

Reinvested earnings. See Reinvested earnings (direct investment)

Reinvested earnings (direct investment). A parent company's claim on the current-period undistributed after-tax earnings of its affiliates. Related terms: Direct investment capital flows.

Rental income of persons. See Rental income of persons with capital consumption adjustment

Rental income of persons with capital consumption adjustment. Earnings from the rental of real property by persons who are not primarily engaged in the real estate business. It also includes the imputed net rental income of owner-occupants and the royalties received by persons from patents, copyrights, and rights to natural resources. Related terms: .

Residential fixed investment. Consists of purchases of private residential structures and residential equipment that is owned by landlords and rented to tenants. Related terms: Fixed investment, Residential structures.

Residential structures. Investment in residential structures consists of new construction of permanent-site single-family and multi-family units, improvements (additions, alterations, and major structural replacements) to housing units, expenditures on manufactured homes, brokers'commissions on the sale of residential property, and net purchases of used structures from government agencies. Residential structures also include some types of equipment that are built into residential structures, such as heating and air-conditioning equipment. Related terms: Fixed investment, Residential fixed investment.

RIMS II multipliers. Estimates of regional input-output multipliers for any state, county, or combination of states or counties. The multipliers estimate the impact from changes in final demand on one or more regional industries in terms of output, employment, and labor earnings. The multipliers are based on estimates of local area personal income and on the national input-output (I-O) accounts.