This is a discussion of Part 2 of the GDP, Personal Income and Growth study first discussed two weeks ago. For this part of the study, we compared percent changes in Nevada GDP to those of each component of Nevada personal income between 1970 and 2009. The model shows that a 1% increase in per capita net earnings increased Nevada GDP by 0.7%. However, a 1% increase in per capita current transfers decreased Nevada GDP by 0.14%. A 1% increase in per capita dividend, interest and rental income decreased Nevada GDP by 0.02%. This is an interesting finding and a useful one as the State continues to develop its economic growth and development strategy.
The analysis shows that job creation will help drive the health of this economy. However, attracting a population which receives its income from investments, governmental or retirement payments at the expense of jobs may lead to the decline of State GDP.