Regional

The non-additivity of the real chained dollar values is reflected in the residual "not allocated by industry," which is calculated as total real chained dollar GDP by state minus the sum of real chained dollar GDP by state for the detailed industries.

Taxes on production and imports (TOPI) consist of tax liabilities, such as general sales and property taxes, that are chargeable to business expense in the calculation of profit-type incomes. Also included are special assessments. TOPI is comprised of state and local taxes—primarily non-personal property taxes, licenses, and sales and gross receipts taxes—and Federal excise taxes on goods and services.

The headquarter offices of multi-establishment companies may be located in a state other than the state(s) where the operating establishments are located. For most industries and GDP-by-state components, the estimates are based on establishment data by state which are used directly. For selected industries – rail transportation, air transportation, and utilities, the estimates of corporate capital charges are based on tabulations of company net income and expenses.

For the nation, BEA defines gross domestic product by industry, often referred to as "value added," as an industry's gross output (sales or receipts and other operating income, commodity taxes and inventory change) minus its intermediate inputs (consumption of goods and services purchased from other industries or imported).

GDP by state is estimated as the sum of three income components:

If the base year current-dollar GDP-by-state value is zero, the quantity indexes for the entire time series are incomputable because their values are mathematically undefined, even if GDP by state is nonzero for years other than the base year. In these cases the quantity indexes have been set equal to zero, even though their values are technically undefined.

To compute real GDP by state on NAICS (1997-forward), you first need the time series of Quantity Indexes for Real GDP by State. Next, divide each quantity index by 100 to put these on a basis of 1.0. Then, multiply each quantity index by the base year GDP-by-state value (you can use current or real dollars since these values are the same in the base year). The result will be the real GDP-by-state series.

Comparisons of GSP chained-dollar growth rates and nominal dollar shares of GSP across industries or states and regions provide indications of the relative performance of industries, states, and regions. For example, comparing the growth rate of chained-dollar GSP for an industry to the growth rate of total chained-dollar GSP indicates whether that industry is raising or lowering the state's growth rate.

Federal civilian and military personnel stationed abroad are included in the measure of GDP in the national accounts but excluded from GDP by state because they cannot be assigned to a particular state. More specifically, GDP by state excludes the wages and salaries and wage and salary supplements of these personnel. Also excluded are the capital consumption allowances associated with Federal government structures and equipment located abroad, and all military weaponry.

The relative performance of states or particular industries within states can be assessed by examining their real growth rates and shares of current-dollar GDP by state. For example, comparing an industry’s real growth rate of chained-dollar GDP by state to the growth rate of total chained-dollar GDP by state indicates whether that industry is raising or lowering the state's growth rate.