Estimating the value added
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Once the intermediate OATS inputs of non-transportation industries have been estimated, the value added is calculated. The value added includes wages and salaries, employers’ social contributions, taxes less subsidies on production, gross mixed income and gross operating surplus. These components of the value added are estimated by assuming that their proportions to intermediate inputs are the same as those of the corresponding transportation industries by mode.
Arguments have been presented for excluding transportation industries’ return to capital when estimating OATS gross operating surplus and gross mixed income. The rationale is that OATS are non-market services and that the price paid is equal to the expenses incurred. As a result, no return to capital would be made from OATS. However, the current CTEA methodology uses the ratios of gross value added to intermediate inputs from the transportation industries. Therefore, return to capital is included in the measurement of OATS surplus and mixed income.
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