Notes / Method:
· This the '180x123Combined’ worksheet (part of the Capital Flow Table workbook from the BEA) is the national CCM matrix from the BEA; columns represent distributions of capital use by each sector, while rows represent distributions of capital to using industries from each sector. Our model is based on the NAICS system of industrial classification, which differs from the BEA’s system. The column 'Closest dofarb sector' has been inserted to show how our model sectors correspond to the BEA classification.
· The sheet called ‘Transpose BEA CCM’ features a transposed version of the data in the '180x123Combined’ worksheet, with rows inserted for BEA categories which split across dofarb sectors.
· The ‘Industry Reallocation’ sheet has the same layout as ‘Transpose BEA CCM.’ The ‘wage share’ column (col. F) is added to show the CA wage share of our model sectors for the BEA sector corresponding to each row. For cases where there is a one-to-one or many-to-one mapping of BEA sector to dofarb sector, the wage share is 1. For cases where there is a one-to-many mapping of BEA sector to dofarb sectors, the wage shares represents the percentage share of CA wages to dofarb sectors which correspond to the BEA sector in question. Multiplying wage shares by investment to BEA sectors reallocates investment to our model sectors.
· The sheet called ‘Investment by Model Sector’ aggregates the rows of ‘Industry Reallocation’ by dofarb sectors.
· The ‘Undo Transpose’ sheet next deals with translation of the BEA codes for industries supplying investment into corresponding dofarb sectors. The first step is to transpose the ‘Investment by Model Sector’ sheet, so the rows of the new matrix again represent investment supply. Column D shows BEA codes for supplying industry, and column C is added to show corresponding dofarb sectors.
· ‘Aggregate CCM’ adds up rows of ‘Investment by Model Sector’ by each dofarb sector, resulting in a CCM matrix which shows the total amount invested by each dofarb sector from each supplying industry.
· The ‘CCM’ sheet converts the columns in ‘Aggregate CCM’ into percentage distributions.