Guest blog post by Steve Landefeld, Director of Commerce's Bureau of Economic Analysis.
Off the top of your head, it
probably seems obvious that the economies of America’s major cities differ
structurally and behaviorally from our nation’s nonmetropolitan and rural
areas, right? You are correct, indeed! But the really interesting question is, What can you learn about this
from the Commerce Department’s Bureau of Economic Analysis? BEA measures our regional economies in
several ways, including GDP
by State, GDP
by Metropolitan Area, State
Personal Income, Metropolitan
Area Personal Income and County Personal Income (AKA: Local Area Personal
Income).
To understand the differences
between the big, metropolitan areas and the rural parts of the country, your
best bet is to turn to BEA’s
Local Area Personal Income which details earnings in all 3,143 counties in
the U.S.
Technically speaking, nonmetropolitan
counties are those that are not part of a metropolitan statistical area, or
MSA, as defined by the Office of
Management and Budget. Population in
these counties is generally less than 50,000 people. There are 2,032 nonmetropolitan counties in
the U.S., almost twice the number of metropolitan counties. Of course, not all nonmetropolitan areas are
rural, nor are all rural areas excluded from official designated metropolitan
areas. Another important consideration
is commuting patterns, certainly plenty of Americans live in areas which may be
rural, but drive into MSAs to work which intertwines these economies. (What, you thought we’d make it that easy?)