The Factor Sectors

A factor of production is a stock that generates a flow of services used in the production of goods and services.  In a SAM, value added is distributed through the factors of production to household owners of factors.  The two factors of production have been sectored out for SAM:  Labor and all other factors aggregated into “Capital.”

In this SAM, the total value added allocated to Labor is $678.30 billion and to Capital, $488.05billion.

The factor sectors, in turn, pay households and outside of California households the factor income.