Operating Surplus, Mixed Income and Consumption of Fixed Capital 1
|
|
- Elijah Robinson
- 5 years ago
- Views:
Transcription
1 Total Total Operating Surplus, Mixed Income and Consumption of Fixed Capital 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. One of the main themes in this series has been GDP compilation since GDP (Gross Domestic Product) is the most important single indicator measuring economic activity in a country. Earlier in this series we reviewed the two main approaches to GDP compilation the production approach and the expenditure approach and provided some background for the third approach to GDP compilation: the income approach 3. In the previous paper we reviewed the first transaction of this latter approach, compensation of employees 4, in this paper we will explore the remaining transactions: operating surplus, mixed income and consumption of fixed capital. Operating Surplus and Mixed Income in the Accounts In the GDP by income approach the perspective is changed from production to income generation as the value added generated in productive activities is considered to generate the (primary) income that is allocated to the factors of production, which are labour and capital 5. For labour the remuneration is compensation of employees, for capital it is operating surplus (the return on capital). If the income for the production factors cannot be separated, as is the case for unincorporated units in the household sector, the total income is called mixed income. This decomposition is recorded in the generation of income account. An example is given in the following table 6. Uses Resources Generation of income account B1n Value added, net D1 Compensation of Employees D29 Other Taxes on Production D39 Other Subsidies on Production Operating Surplus / Mixed Income, B2n net Total Table 1 Generation of income account 1 This paper was developed by DevStat Servicios de Consultoría Estadística in consortium with ICON Institute, under the project Essential SNA: Building the Basics, supported by EUROSTAT, for which information can be found at the following link: 2 Henceforth called the Handbook ; this paper is based on the second (2012) edition; it can be found at the following link: 3 Annual GDP by income approach in current prices: Main issues 4 Compensation of employees and related labour concepts 5 Micro-economic theory uses the concept of a production function to quantify the relationship between production factors, such as labour and capital, and the output they generate 6 This table and the next come from the paper Introduction to the SNA 2008 Accounts, part 2: Current Accounts. The column stands for Rest-of-the-World. 1
2 Total Total For corporations (abbreviated as in the table) total value added (having the value 1256) consists of compensation of employees (1030) and operating surplus (169). Note that taxes and subsidies on production are recorded in this account as well, since the recognized SNA valuation is basic prices, which include taxes and subsidies on production (but exclude taxes and subsidies on products). Value added without taxes and subsidies on production is called value added at factor cost, but this is not an SNA concept. For households ( ) total value added (having the value 144) consists of compensation of employees (22) and operating surplus / mixed income (122). As noted earlier, this value added is generated largely in unincorporated units owned by households, in which labour and capital income are difficult to separate, and total income from value added for these units is therefore mixed, consisting of both income from labour and income from capital. Here capital income is the return to the owner as entrepreneur. Note that the household sector does have operating surplus as well. This is due to owner-occupiers in their capacity as producers of housing services for own final consumption, and to households leasing dwellings. Note that for ernment ( ) operating surplus is zero, and value added is only allocated to compensation of employees (and taxes and subsidies on production). Operating surplus then is a measure of the surplus accruing to capital from the processes of production, after the productive factor labour has been remunerated and net taxes (taxes minus subsidies) on production have been paid. From this surplus is deducted any explicit or implicit interest charges, rent or other property incomes payable on the financial assets, land or other natural resources required to carry on the production (SNA 7.12). These property incomes are recorded in the next account, the allocation of primary income account, which focuses on resident institutional units or sectors in their capacity as recipients of primary incomes. An example is given in the following table. Uses Resources Allocation of primary income account B11 External balance of goods and services Operating Surplus / Mixed Income, B2n net D1 Compensation of Employees D2 Taxes on production and imports D21 Taxes on products D29 Other Taxes on Production D3 Subsidies D31 Subsidies on products D39 Other Subsidies on Production D4 Property income B5n Primary income, net Current external balance Total Table 2 Allocation of primary income account 2
3 This account records the resources of households (compensation of employees), government (taxes minus subsidies, both on products and production) and operating surplus / mixed income for enterprises (both in the corporations and households sectors). Property incomes received from the ownership of financial assets or natural resources serve as additional resources for all sectors. Additionally, property income may have to be paid by units (e.g. as rent) so there are recordings on the use side for this transaction as well. The final balance of this account is primary income. Note that in the above two tables the opening and closing balances are given in net values. This means excluding consumption of fixed capital. Consumption of fixed capital (CFC) reflects the decline in the value of capital. This is similar to depreciation as used in business accounting. However, CFC in national accounts is not a method for allocating the costs of past expenditures on capital over subsequent accounting periods. Rather, it is the decline in the future benefits of the assets due to their use in the production process. Balancing items with CFC included are called gross. The aggregate value of all gross primary income balances for all sectors is Gross National Income, abbreviated as GNI (SNA 7.20). Measurement of gross operating surplus and mixed income typically involves the same statistical data sources as used for the production approach. Initial estimates for this component can be derived from business statistics as follows: Output intermediate consumption other taxes on production + other subsidies on production compensation of employees The final adjusted balanced value of gross operating surplus and mixed income can be obtained when the initial estimates for output and intermediate consumption are replaced by the corresponding figures in the balanced supply and use tables, and corresponding initial estimates for other taxes and subsidies on production plus the compensation of employees are replaced by the final balanced values in the national accounts industry tables. Introducing Consumption of Fixed Capital We have seen how operating surplus and mixed income serve as balancing items of the generation of income account, and that consumption of fixed capital is used to derive gross values from net values of balancing items (such as value added, operating surplus / mixed income and primary income). In general, the estimate of the consumption of fixed capital is not relevant to GDP or GNI, since these concepts are gross, i.e. production or income aggregates before the deduction of the fixed capital consumed. There is, however, one very important exception to this main rule, namely non-market activity, where by convention the output value is calculated from the costs point of view, and where the consumption of fixed capital is one of the components of costs. Non-market activity occurs in Sector S.13, general government and Sector S.15, non-profit institutions serving households. The latter is private non-market output. The vast majority of non-market output comes from government. We have not yet seen how consumption of fixed capital arises. This happens in the capital account. Before we arrive at this account the secondary distribution of income account follows the conversion of primary income into disposable income, which is the income available for final consumption. These 3
4 Total Total two types of income are not the same because of the occurrence of redistribution of income. This takes place in the form of the following transactions: Current taxes on income, wealth; Net social contributions; Social benefits other than social transfers in kind; social transfers in kind are individual goods and services provided as transfers in kind to individual households by government; Other current transfers; these consist of the following: Net premiums and claims for non-life insurance; Current transfers between different kinds of government units; Current transfers such as those between different households. The transactions for the expenditure approach to GDP household, government and NPISH final consumption expenditures belong to the Use of disposable income account. Both of these accounts are current accounts, in which the flow of value added to disposable income (out of which final consumption is paid) is followed for one accounting period. The last current account the use of disposable income account closes with savings as balancing item. Following the monetary perspective, this represents surplus money in the economy that can be used for accumulating (building up) assets. An asset, tangible or intangible, is a store of value that is capable of being owned or controlled. Assets can be financial and non-financial. Non-financial assets 7 can be produced or non-produced. Produced assets include fixed assets, used in production repeatedly over an extended period of time, inventories and valuables. Non-produced assets include natural resources, licenses and marketing assets (including goodwill). Transactions in non-financial assets are recorded the capital account, the first accumulation account 8. The following table gives an example. Changes in assets Changes in liabilities and net worth Capital account B12 Current external balance B8n Saving, net P5g Gross capital formation K1 Consumption fixed capital K2 Acquisitions less disposals of nonproduced assets D9 Capital transfers, receivable D9 Capital transfers, payable B10.1 Changes in net worth due to saving and capital transfers B9 Net lending(+)/net borrowing(-) Total Table 3 Capital account 7 Our earlier term capital referred to non-financial assets 8 For the other accumulation accounts see the paper Introduction to the SNA 2008 Accounts, part 3: Accumulation Accounts. Table 3 comes from this paper. 4
5 The left-hand side of the capital account records the various types of investment in non-financial assets. The main use transaction is gross capital formation, which consists of the following three components 9 : Gross fixed capital formation; Changes in inventories; Acquisitions less disposals of valuables. Apart from consumption of fixed capital the other transaction on the left-hand side of the capital account is acquisitions less disposals of non-produced non-financial assets. This transaction also involves assets, in this case: Natural resources; e.g. land, mineral and energy reserves; Contracts, leases and licenses; Goodwill and marketing assets. The right-hand side includes net saving and capital transfers receivable and capital transfers payable (with a minus sign) in order to arrive at that part of changes in net worth due to saving and capital transfers. Capital transfers are transactions, either in cash or in kind, in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, or in which cash is transferred to enable the recipient to acquire another asset, or in which the funds realized by the disposal of another asset are transferred (SNA ). As we have already seen, the transaction consumption of fixed capital represents the decline, between the beginning and the end of the accounting period, in the value of the fixed assets owned by an enterprise, as a result of their physical deterioration and normal rates of obsolescence and accidental damage (SNA ). Because consumption of fixed capital is a negative change in fixed assets, it is recorded, with a negative sign, on the left-hand side of the capital account as well. We will now turn to the question how consumption of fixed capital can be calculated. Calculating Consumption of Fixed Capital Consumption of fixed capital is a flow concept, causing stocks in non-financial assets the capital stock to change. Applying the gross and net terminology introduced earlier, we have the gross capital stock and the net capital stock, with consumption of fixed capital being the difference between the two. The build-up of non-financial assets takes place by gross fixed capital formation (GFCF). Included are all fixed assets, including both tangible and intangible fixed assets. Intangibles include mineral exploration costs, software, major improvements to non-produced assets and cost of ownership transfer associated with non-produced assets. Since non-financial assets have a lifetime of more than one year (otherwise they would not be assets) they will be part of the gross capital stock after the year in which they were introduced into the capital stock. The number of years depends on the lifetime (also known as the average service life) of 9 See the papers: Gross Capital Formation in current and constant prices, part 1: Gross Fixed Capital Formation; Gross Capital Formation in current and constant prices, part 2: Changes in Inventories. 5
6 the asset. The following table gives some typical values for the average service life of some asset classes 10. Asset Class Average Service Life (Years) Residential Buildings 80 Non-residential Buildings 40 Other Construction and Works 40 Ships and Boats 20 Aircraft 15 Road Vehicles 10 Machinery and Equipment 15 Table 4 Average service lives of some typical assets The way in which the asset is removed from the capital stock, once it reaches the end of its lifetime is modeled by a mortality function. Different choices are possible. The simultaneous exit mortality function assumes that all assets are retired from the capital stock at the moment when they reach the average service life for the type of asset concerned. The corresponding survival function therefore shows that all assets of a given type and vintage (i.e. year of installation) remain in the stock until time T, at which point they are all retired together. A mortality function that is often used in practice is the Winfrey curve 11. At the year in which the asset enters the capital stock, its value is equal to the GFCF value. At the end of its service life the value of the asset is zero. But what are the values for the years in between? This depends on the amount of fixed capital that has been consumed. The conventional way of measuring consumption of fixed capital is to do it directly by applying a depreciation formula to the capital stock. Again, different choices are possible, the easiest of which is straight-line depreciation, in which the value of the asset say 100 is depreciated in equal portions over its lifetime. If we take the lifetime to be 5 years, this would amount to a consumption of fixed capital of 20 per year. However this calculation gives rise to a bias, because the same consumption of fixed capital is imputed if the investments take place in December. Assuming an even distribution of the acquisitions of fixed assets over the year, the average of the stock of the current year T and the previous year T-1 (of course both in prices of year T-1) seems to be a better choice for the estimation. An example is given in the following table, let s say for a computer. Year Gross Fixed Capital Formation Gross Capital Stock Consumption of Fixed Capital Net Capital Stock Table 5 Example of straight-line depreciation 10 Taken from the Singapore example, in: Measuring Capital, OECD 2001, p Named after Robley Winfrey who in the 1930s collected information on dates of installation and retirement of 176 groups of industrial assets and calculated 18 type curves that gave good approximations to their observed retirement patterns. See Measuring Capital, OECD 2001,
7 In this example the asset computer enters the (gross) capital stock in year 1 and remains in service for 5 years. A factor of 1/5 is applied to the average of the capital stock for the current and previous year, which is 50 for year 1, 100 for years 2 to 5 and 50 for year 6. The net capital stock is obtained by subtracting the calculated consumption of fixed capital from the gross capital stock. Extending the example to a series of yearly additions ( vintages ) of the same asset over a number of years is straightforward, as is demonstrated in the following table. Contribution Year 1 Contribution Year 2 Contribution Year 3 Contribution Year 4 Contribution Year 5 Total Year GFCF GCS CFC NCS GCS CFC NCS GCS CFC NCS GCS CFC NCS GCS CFC NCS GCS CFC NCS Table 6 Example of straight-line depreciation with different vintages For each new vintage the values from table 5 are shifted forward in time with one year. Capital Services The consumption of fixed capital measures the decline in the value of assets associated with ageing. This decline in market values can be described as the age-price profile of an asset. The age-price profile is related to, but different from, the decline in the efficiency of assets as they age. This decline is referred to as the age-efficiency profile. These two concepts are best illustrated using the example given in SNA Table 20.1, which is reproduced in the table below. Contribution to production Sum of 5 years Age-efficiency profile Year 1 Year 2 Year 3 Year 4 Year 5 Year Year Year Year Year Asset Value Decline in asset value Income Age-price profile Table 7 SNA Example illustrating the difference between age-price profile and age-efficiency profile Here we do not look at GFCF (indicating the value of the asset) but at the contribution to production of the asset. First look at the diagonal values (100, 80, 60, 40, 20). Here we recognize the same straight-line depreciation with a factor 1/5 as used before 12, although now applied to the contribution to production. By comparing the value in year T with T-1 we get the age-efficiency 12 Assuming here that the full amount is depreciated in the same calendar year. 7
8 profile in the last column (e.g = 60/80). These values represent the capital services of the asset, and thereby constitute gross operating surplus. It is important to note that the contribution to production in year 2 (80) also increases the value of the asset in year 1, since the asset will generate production in both year 1 and year 2. The standard way of obtaining the additional value in year 1 is by calculating the present value in year 1 of the value in year 2. The idea is that one can invest money at a particular interest rate say 5 % 13 in year 1 which will then yield the original amount plus interest in year 2 of 1.05 times the original value. The present value can be obtained by reversing this calculation, i.e. by dividing 80 by 1.05 we get 76 after rounding 14. The next entry on the diagonal, 60 for year 3, will yield a (rounded) present value of (1/1.05)*60 = 57 for year 2 and (1/1.05)* (1/1.05)*60 = 54 for year 1. This way all non-diagonal elements in the above table can be found and the asset value can be constructed by summing the columns: 282, 191, 116, 59, 20. The decline in asset values (91, 74, 57, 39, 20) represents again consumption of fixed capital and by comparing two consecutive values one obtains the age-price profile (e.g = 116/191). The important point of this example is that the age-efficiency profile can be used to generate the age-price profile for assets and to then derive consumption of fixed capital indirectly as the difference between successive values of the net capital stock. This also works the other way around as is noted in SNA (section 20.15): if nothing is known about the contribution of the asset to production but the decline in the value of the asset over the five years, due to ageing, is known (the age-price profile), one can derive the same age-efficiency profile again (the tables 20.1 and 20.2 in SNA are equal). A number of patterns can be postulated for either the age-price or age-efficiency profile. These include the straight line depreciation case. An interesting alternative are geometrically declining profiles, where the value in year T is obtained by multiplying a fixed proportion to the value of the year before. In this case the shape of the age-price profile and the shape of the age-efficiency profile are exactly the same (SNA 20.23). One consequence is that figures for capital stock adjusted for the decline in value are equal to those for capital stock adjusted for the decline in efficiency. This property is an important reason for choosing this profile in practice to determine the value of capital stock. The income in the table is the amount that the owner of the asset can spend and still be as well off at the end of the period as at the beginning. For year 1 this income is = 9, for year 2 it is = 6. This income constitutes the return to capital or net operating surplus. This way we have established a link between the asset valuation and operating surplus, via the notion of capital services. Chapter 20 of SNA presents a detailed analysis of these capital services. The PIM Method In practice we want to use time-series of GFCF to generate consumption of fixed capital. This is usually done using the Perpetual Inventory Method (PIM), for which the preceding sections have already laid the foundations. This is a method to derive the gross capital stock from GFCF and then calculate CFC and net capital stock as before. PIM works by accumulating past capital formation and 13 The choice of 5% is standard in the literature 14 The factor 1/1.05 is called the discount factor 8
9 deducting the value of assets that have reached the end of their service lives. Both capital formation and discards of assets ( scrapping ) are revalued either to the prices of the current year (current prices) or to the prices of a single base year (constant prices) 15. To implement PIM we need statistics on gross fixed capital formation, price indices for capital assets, and information on average service lives and on how retirements are distributed around these averages. Provided the capital stock series go back as many years as the longest-lived asset (go back perpetually ), it is possible to estimate the capital stock without having an initial benchmark estimate. However, as the longest lived assets, usually dwelling structures, may have service lives in excess of 100 years, most countries need to start their PIM estimates with a bench-mark estimate, at least for assets with long lives. In the example below we will illustrate this. Note that PIM relates to the estimation of the capital stock and not to the calculation of CFC. The method is described in detail in chapter 6 of the OECD manual on measuring capital, to which the interested reader is referred. Here we will illustrate the method with an example. Suppose we have time-series of GFCF values and price indexes as in table 8 below, e.g. for the asset dental equipment. We can then express GFCF in prices of 2005 by deflating current values with the index (e.g. 59 = 100 * 56 / 95 with rounding applied). The capital stock is then derived by adding GFCF in prices 2005 to the capital stock of the year before and CFC is derived by applying the depreciation rate (in this example again 1/5 = 0.2). Inflating CFC with the price index gives CFC at "current replacement costs" (e.g. 52 = 54 * 95/100 with rounding applied). We have applied the OECD procedure in the table 8 using a simple formula that derives CFC from the net capital stock directly by applying the factor 1/5 to half the value of GFCF plus the value of the net capital stock of the year before (e.g. 56 = 1/5 *( 63 / ) with values rounded). The factor ½ arises because of the same reason as in table 5. The net capital stock is then derived as the net capital stock of the year before plus GFCF minus CFC (254 = with values rounded). Year GFCF GFCF prices (average, 2005 = 100) GFCF (prices 2005) NCS (end of year, prices 2005) CFC (prices 2005) CFC ("current replacement costs") ,032 Table 8 An example of calculating capital stock and consumption of fixed capital The problem is to get these calculations started by estimating the net capital stock for In the example this is done by calculating an average of the GFCF increase over the period Alternative ways of estimating the capital stock are presented in chapter 8 of Measuring Capital, OECD
10 (0.032 = (84/56)^(1/13)-1 with values rounded). The net capital stock for the year 1999 is then derived by dividing GFCF for the year 2000 by the sum of this average increase and the rate of depreciation 1/5 (242 = 56 / ( ,2) with values rounded). The series for the net capital stock is then build up using this initial value as starting point. Concluding remarks This paper set out to provide some background on the methodology of compiling operating surplus, mixed income and consumption of fixed capital. We looked at their place and role in the accounts, their SNA definitions, their data sources and their methods of compilation. We also made a side tour, exploring the concepts of capital services and capital stock. To find out more, Essential SNA: Building the Basics (2012 edition), Chapter 3 The 2008 SNA, European Commission, IMF, OECD, UN, World Bank, 2009, Chapters 10, 20 Measuring Capital, OECD
Final Consumption Expenditures in current and constant prices, part 2: Government and NPISH 1
Final Consumption Expenditures in current and constant prices, part 2: Government and NPISH 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential
More information14 October 2013 Rev 25 SNA BASIC CONCEPTS (BASED ON SNA 2008)
14 October 2013 Rev 25 SNA BASIC CONCEPTS (BASED ON SNA 2008) CONCEPT Accumulation Asset Assets (produced) Assets (nonproduced) Asset (fixed) goods and services are used for the three economic activities
More informationQuarterly National Accounts, part 1: Main issues 1
Quarterly National Accounts, part 1: Main issues 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. One of the main
More informationIntroduction to the SNA 2008 Accounts, part 1: Basics 1
Introduction to the SNA 2008 Accounts, part 1: Basics 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. The aim of
More informationIntroduction to Supply and Use Tables, part 1 Structure 1
Introduction to Supply and Use Tables, part 1 Structure 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. The aim
More informationManual on the Changes between ESA 95 and ESA 2010
EUROPEAN COMMISSION EUROSTAT Directorate C: National Accounts, Prices and Key Indicators Manual on the Changes between ESA 95 and ESA 2010 The Manual on the Changes between ESA 95 and ESA 2010 sets out
More informationQuarterly National Accounts, part 4: Quarterly GDP Compilation 1
Quarterly National Accounts, part 4: Quarterly GDP Compilation 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. In
More informationA new presentation for the quarterly National Accounts
A new presentation for the quarterly National Accounts The Canadian System of National Accounts 2012 (CSNA2012) Section 1: Current presentation of the Canadian National Accounts Section 2: New presentation,
More informationExhaustiveness, part 1 - Main issues 1
Exhaustiveness, part 1 - Main issues 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. One of the main themes in this
More informationFixed Capital Stock in the Swedish National Accounts Michael Wolf, National Accounts Division Statistics Sweden
Capital Stock Conference March 1997 Agenda Item III Fixed Capital Stock in the Swedish National Accounts Michael Wolf, National Accounts Division Statistics Sweden 1 STATISTICS SWEDEN National Accounts
More informationIntroduction to Supply and Use Tables, part 3 Input-Output Tables 1
Introduction to Supply and Use Tables, part 3 Input-Output Tables 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2.
More informationVIII. FINANCIAL STATISTICS
VIII. FINANCIAL STATISTICS INTRODUCTION 405. The financial statistics covered in this chapter have broader sectoral coverage than the monetary statistics described in Chapter 7. The scope of the monetary
More informationSources for Other Components of the 2008 SNA
4 Sources for Other Components of the 2008 SNA This chapter presents an overview of the sequence of accounts and balance sheets of the 2008 SNA. It is designed to give the compiler of the quarterly GDP
More informationExports and imports in current and constant prices 1
Exports and imports in current and constant prices 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. The aim of this
More informationThe primary purpose of the International Comparison Program (ICP) is to provide the purchasing
CHAPTER 3 National Accounts Framework for International Comparisons: GDP Compilation and Breakdown Process Paul McCarthy The primary purpose of the International Comparison Program (ICP) is to provide
More informationNational Accounts Statistics Report 2015
National Accounts Statistics Report 2015 Private Bag 0024, Gaborone. Tel: 3671300 Fax: 3952201 E-mail: info@statsbots.org.bw Website: http://www.statsbots.org.bw 2. Preface Published by STATISTICS BOTSWANA
More informationNATIONAL ACCOUNTS STATISTICS REPORT 2016
NATIONAL ACCOUNTS STATISTICS REPORT 2016 STATISTICS REPORT. Private Bag 0024 Botswana Tel: (267) 367 1300. Toll Free: 0800 600 200. Fax: (267) 395 2201. Email: info@statsbots.org.bw Website: www.statsbots.org.bw
More informationGross domestic product, 2008 (Preliminary estimation)
Internet publication www.ksh.hu Hungarian September 2009 Central Statistical Office ISBN 978-963-235-266-4 Gross domestic product, 2008 (Preliminary estimation) Contents Summary...2 Tables...4 Methodological
More informationINTRODUCING CAPITAL SERVICES INTO THE PRODUCTION ACCOUNT
SNA/M2.04/15 INTRODUCING CAPITAL SERVICES INTO THE PRODUCTION ACCOUNT PAPER FOR INFORMATION An Issue Paper Prepared for the December 2004 Meeting of the Advisory Expert Group on National Accounts Nadim
More informationNational Accounts Framework for International Comparisons:
International Comparison Program Chapter 3 National Accounts Framework for International Comparisons: GDP Compilation and Breakdown Process Paul McCarthy Measuring the Size of the World Economy ICP Book
More informationMethodology Estimates of the Capital Stock of Fixed Assets
Methodology Estimates of the Capital Stock of Fixed Assets The Estimates of the Capital Stock of Fixed Assets are the estimates produced by the Central Statistics Office (CSO) of the stock of fixed assets
More informationGENERAL GOVERNMENT DATA
GENERAL GOVERNMENT DATA General Government Revenue, Expenditure, Balances and Gross Debt PART I: Tables by country AUTUMN 2013 Economic and Financial Affairs EUROPEAN COMMISSION DIRECTORATE GENERAL ECFIN
More informationKathmandu, Nepal, September 23-26, 2009
Session Number: Session 8b (Parallel) Time: Friday, September 25, 14:00-15:30 Paper Prepared for the Special IARIW-SAIM Conference on Measuring the Informal Economy in Developing Countries Kathmandu, Nepal,
More informationINTEGRATED FINANCIAL AND NON-FINANCIAL ACCOUNTS FOR THE INSTITUTIONAL SECTORS IN THE EURO AREA
INTEGRATED FINANCIAL AND NON-FINANCIAL ACCOUNTS FOR THE INSTITUTIONAL SECTORS IN THE EURO AREA In May 26 the published for the first time a set of annual integrated non-financial and financial accounts,
More informationExhaustiveness, part 2 Illegal Economy 1
Exhaustiveness, part 2 Illegal Economy 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. One of the main themes in
More informationUPDATE OF QUARTERLY NATIONAL ACCOUNTS MANUAL: CONCEPTS, DATA SOURCES AND COMPILATION 1 CHAPTER 4. SOURCES FOR OTHER COMPONENTS OF THE SNA 2
UPDATE OF QUARTERLY NATIONAL ACCOUNTS MANUAL: CONCEPTS, DATA SOURCES AND COMPILATION 1 CHAPTER 4. SOURCES FOR OTHER COMPONENTS OF THE SNA 2 Table of Contents 1. Introduction... 2 A. General Issues... 3
More information18 NOV Nigerian Gross Domestic Product Report (expenditure approach) Q2 2015
18 NOV 2015 Nigerian Gross Domestic Product Report (expenditure approach) Q2 2015 PREFACE This publication provides data on Quarterly Gross Domestic Product (GDP) by the EXPENDITURE approach estimates
More information2 Some Essential Macroeconomic Aggregates
2 Some Essential Macroeconomic Aggregates 2.1 Defining Gross Domestic Product (GDP) 2.2 Deriving GDP in Volume 2.3 Defining Demand: the Role of Investment and Consumption 2.4 Reconciling Global Output
More informationAssistance with Implementation of System of Health Accounts (SHA) Organisation of Workshops
Assistance with Implementation of System of Health Accounts (SHA) Organisation of Workshops Eurostat Grant N 35100.2006.012-2006.628 Annex 2b (Part 1) HCR1 Capital formation of health care provider institutions
More informationNigerian Gross Domestic Product Report (Expenditure and Income Approach)
Nigerian Gross Domestic Product Report (Expenditure and Income Approach) ( Q3, Q4 2016) Report Date: October 2017 Data Source: National Bureau of Statistics Contents Preface 1 Summary 2 Gross Domestic
More informationDepreciation or Consumption of Fixed Capital
ISBN 978-92-64-02563-9 Measuring Capital OECD MANUAL 2009 OECD 2009 Chapter 5 Depreciation or Consumption of Fixed Capital 43 5.1. Concept and scope Depreciation is the loss in value of an asset or a class
More informationGuidelines for the Notes on National Accounts Methodology
Guidelines for the Notes on National Accounts Methodology In addition to the national accounts data, metadata on the national accounts methodology is published in the United Nations publication: National
More informationSTATISTICS BOTSWANA GROSS DOMESTIC PRODUCT. No:2017/3. Third Quarter 2017
No:2017/3 STATISTICS BOTSWANA GROSS DOMESTIC PRODUCT Third Quarter 2017 Copyrights 2017 Private Bag 0024, Gaborone. Tel: 367 1300 Fax: 395 2201 Toll Free: 0800 600 200 E-mail: info@statsbots.org.bw Website:
More informationGuidelines for the Notes on National Accounts Methodology
Guidelines for the Notes on National Accounts Methodology In addition to the national accounts data, metadata on the national accounts methodology is published in the United Nations publication: National
More informationExhaustiveness, part 3 Underground Economy 1
Exhaustiveness, part 3 Underground Economy 1 Introduction This paper continues the series dedicated to extending the contents of the Handbook Essential SNA: Building the Basics 2. One of the main themes
More informationQuarter 3, Copyrights Statistics Botswana 2018
STATISTICS BOTSWANA GROSS DOMESTIC PRODUCT Quarter 3, 2018 Copyrights 2018. Private Bag 0024 Botswana Tel: (267) 367 1300. Fax: (267) 395 2201. Email: info@statsbots.org.bw Website: www.statsbots.org.bw
More informationNATIONAL ECONOMIC ACCOUNTS 2010 (Provisional Estimates)
REPUBLIC OF CYPRUS NATIONAL ECONOMIC ACCOUNTS 2010 (Provisional Estimates) STATISTICAL SERVICE National Accounts Statistics Series II Report No. 27 Obtainable from the Printing Office of the Republic of
More informationECO 209Y MACROECONOMIC THEORY AND POLICY LECTURE 2: NATIONAL INCOME ACCOUNTING
ECO 209Y MACROECONOMIC THEORY AND POLICY LECTURE 2: NATIONAL INCOME ACCOUNTING Gustavo Indart Slide1 GROSS DOMESTIC PRODUCT Gross Domestic Product (GDP) is the value of all final goods and services produced
More informationCapital and Financial Accounts Main entries and Data Needs
An Introduction to System of National Accounts Integrated Transaction Accounts Lesson: IX Part 1 Capital and Financial Accounts Main entries and Data Needs Third Intermediate-Level e-learning Course on
More informationSTATE OF PLAY ON RESERVATIONS ON GNP/GNI. Eurostat/C3/GNIC/264 EN Orig: EN
EUROPEAN COMMISSION EUROSTAT Directorate C: National Accounts; prices and key indicators Unit C-3: Statistics for administrative purposes Eurostat/C3/GNIC/264 EN Orig: EN 27 TH MEETING OF THE GNI COMMITTEE
More informationPRELIMINARY ANNUAL NATIONAL ACCOUNTS 2014
PRELIMINARY ANNUAL NATIONAL ACCOUNTS 2014 Est. by Statistics Act 9 of 2011 Preliminary Annual National Account 2014 Namibia Statistics Agency 1 MISSION STATEMENT In a coordinated manner we produce and
More informationOrganisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development
For Official Use STD/NA(2002)27 Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development English - Or. English STATISTICS DIRECTORATE STD/NA(2002)27
More informationCapital and Financial Accounts Main entries and Data Needs
An Introduction to System of National Accounts Integrated Transaction Accounts Lesson: VII Part 1 Capital and Financial Accounts Main entries and Data Needs Second Intermediate-Level e-learning Course
More informationOne of the major recommended
FEATURE Peter Evans, Michael Hatcher and Damian Whittard The preliminary R&D satellite account for the UK: a sensitivity SUMMARY This article builds on previous work in Economic & Labour Market Review
More informationNet lending of the Portuguese economy increased to 1.1% of GDP
22 December 2017 Quarterly Sector Accounts (Base 2011) Third Quarter 2017 Net lending of the Portuguese economy increased to 1.1% of GDP The net lending of the economy stood at 1.1% of the Gross Domestic
More informationNATIONAL ACCOUNTS STATISTICS
SDT: 35-06 KINGDOM OF TONGA NATIONAL ACCOUNTS STATISTICS 2010 October 2010 Statistics Department P.O. Box 149, Nuku alofa Government of Tonga Telephone: (676) 23-300 / 23-913 Fax : (676) 24-303 Email :
More informationFinal annul GDP estimate for 2009
1(5) Final annul GDP estimate for 2009 The Swedish National Accounts have now been updated with detailed statistical information for 2009. The information is based on the balancing of 400 product groups
More information1. For information about the Mid-Decade Review, see Mid-Decade Strategic Review of BEA s Economic Accounts: Maintaining and Improving
September 1995 SURVEY OF CURRENT BUSINESS 33 Preview of the Comprehensive Revision of the National Income and Product Accounts: Recognition of Government Investment and Incorporation of a New Methodology
More informationAn Introduction to System of National Accounts - Basic Concepts
An Introduction to System of National Accounts - Basic Concepts Lesson I: Lecture 1 Introduction Lesson I Fifth Basic e-learning Course on 2008 System of National Accounts September - November 2014 e 2008
More informationOverview of the General Statistical Framework
Overview of the General Statistical Framework Chapter 2: Overview of the General Statistical Framework Table of Contents Chapter 2: Overview of the General Statistical Framework... 1 I. Introduction...
More informationJOINT OECD/ESCAP MEETING ON NATIONAL ACCOUNTS
OECD UNITED NATIONS ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC JOINT OECD/ESCAP MEETING ON NATIONAL ACCOUNTS 1993 System of National
More informationUpdated System of National Accounts (SNA): Chapter 16: Summarising and integrating the accounts
Statistical Commission Thirty-ninth session 26 29 February 2008 Item 3(d) of the provisional agenda Items for discussion and decision: National accounts Background document Available in English only Updated
More informationAn Introduction to System of National Accounts - Basic Concepts
Lesson-VI: Printable Lesson: VI Sequence of Accounts An Introduction to System of National Accounts - Basic Concepts Fourth e-learning Course on the 2008 System of National Accounts October December 2013
More informationDescription of the sources and methods used to compile quarterly non-financial accounts by institutional sector (QSA) in Finland
1(66) Description of the sources used to compile quarterly non-financial accounts by institutional (QSA) in Finland 2(66) Table of contents GENERAL DESCRIPTION... 3 Organisational aspects... 3... 4...
More informationREVISION AND AUTHORISATION HISTORY
Pilot Study on the Estimation of Regional Capital Stocks A Final Report for the European Commission (Directorate General Regional Policy) 12 March 2010 REVISION AND AUTHORISATION HISTORY Version Date Authorised
More informationNational Accounts
Republic of Namibia National Accounts 1996 2006 Sectoral Contribution to GDP, 2006 Primary Sector 22.1% Tertiary Sector 51.6% Secondary Sector 18.4% Central Bureau of Statistics National Planning Commission
More informationEstimating the Corporate Income Tax Gap: The RA-GAP Methodology. Prepared by Junji Ueda Fiscal Affairs Department
T E C H N I C A L N O T E S A N D M A N U A L S Estimating the Corporate Income Tax Gap: The RA-GAP Methodology Prepared by Junji Ueda Fiscal Affairs Department I N T E R N A T I O N A L M O N E T A R
More informationCapital Stock Measurement in New Zealand
Capital Stock Conference March 1997 Agenda Item III CONFERENCE ON MEASUREMENT OF CAPITAL STOCK Canberra 10-14 March 1997 Capital Stock Measurement in New Zealand National Accounts Division Statistics New
More informationJean Monnet Chair. Small Area Methods for Monitoring of Poverty and Living conditions in EU (SAMPL-EU)
Jean Monnet Chair Small Area Methods for Monitoring of Poverty and Living conditions in EU (SAMPL-EU) II.1. Income, Consumption and Poverty in the European Statistical System Luigi Biggeri Outline 1. Some
More information1.5. "GENERAL GOVERNMENT" SECTOR ACCOUNTS
1.5. "GENERAL GOVERNMENT" SECTOR ACCOUNTS 1.5.1. PRODUCTION ACCOUNT 1995 Output Intermediate consumption value added Total 59500 32005 27495 Nonmarket services 54698 29773 24925 Education 10336 3188 7148
More informationEconomic Commission for Latin America and the Caribbean SUMMARY RESULTS OF THE REGIONAL SEMINAR ON NATIONAL ACCOUNTS
Economic Commission for Latin America and the Caribbean SUMMARY RESULTS OF THE REGIONAL SEMINAR ON NATIONAL ACCOUNTS ( de Janeiro, 18-28 September 1990) List of Headings: Page Accounts and tables... 11
More informationAn introduction to the United Kingdom National Accounts
An introduction to the United Kingdom National Accounts The Blue Book presents the full set of economic accounts, or National Accounts, for the United Kingdom. These accounts are compiled by the Office
More informationMacroeconomic Theory and Policy
ECO 209Y Macroeconomic Theory and Policy Lecture 2: National Income Accounting Gustavo Indart Slide1 Gross Domestic Product Gross Domestic Product (GDP) is the value of all final goods and services produced
More informationChapter 8: The redistribution of income accounts...3
Chapter 8: The redistribution of income accounts...3 A. Introduction... 5 1. The secondary distribution of income account... 5 Current taxes on income, wealth, etc... 6 Social contributions and benefits...
More informationGovernment finance statistics guide
Government finance statistics guide January 2019 Contents 1 Introduction 3 1.1 Latest update of the guide 3 1.2 Context and purpose 3 1.3 Methodological framework 4 1.4 ECB publications and other uses
More informationPDCOUNTRY DEMOGRAPHICS
PDCOUNTRY DEMOGRAPHICS The population, GDP (and its breakdown), value added by economic activity, implicit price deflator, GNI, and exchange rate demographics provided are among the most important parts
More informationGOVERNMENT FINANCE STATISTICS GUIDE
GOVERNMENT FINANCE STATISTICS GUIDE GOVERNMENT FINANCE STATISTICS GUIDE MARCH 2010 In 2010 all publications feature a motif taken from the 500 banknote. European Central Bank, 2010 Address Kaiserstrasse
More informationNATIONAL ECONOMIC ACCOUNTS 2011 (Provisional Estimates)
REPUBLIC OF CYPRUS NATIONAL ECONOMIC ACCOUNTS 2011 (Provisional Estimates) STATISTICAL SERVICE National Accounts Statistics Series II Report No. 28 Obtainable from the Printing Office of the Republic of
More informationBuilding the System of National Accounts - basic concepts
Building the System of National Accounts - basic concepts Statistics Explained This article is part of a set of background articles explaining in some detail how statistics producers, such as national
More informationSupply and Use Tables for Macedonia. Prepared by: Lidija Kralevska Skopje, February 2016
Supply and Use Tables for Macedonia Prepared by: Lidija Kralevska Skopje, February 2016 Contents Introduction Data Sources Compilation of the Supply and Use Tables Supply and Use Tables as an integral
More information8 Changes from BPM5. Chapter 3. Accounting Principles. Chapter 1. Introduction. Chapter 2. Overview of the Framework APPENDIX
APPENDIX 8 Changes from BPM5 A detailed list of individual changes made in this edition of the Manual is provided below. The comparison is with BPM5, as amended by The Recommended Treatment of Selected
More informationDistribution and Use of Income Accounts Main entries and Data Needs
An Introduction to System of National Accounts Integrated Transaction Accounts Lesson: VI Part 1 Distribution and Use of Income Accounts Main entries and Data Needs Second Intermediate-Level e-learning
More informationReal National Accounts as a Money Flow System
Real National Accounts as a Money Flow System Matti Estola 1 and Alia Dannenberg 2 The analogy between a money and a water flow system is demonstrated in Figure 1, where the difference between inflow and
More informationMEASURING NATIONAL OUTPUT AND NATIONAL INCOME. Chapter 18
1 MEASURING NATIONAL OUTPUT AND NATIONAL INCOME Chapter 18 national income and product accounts Data collected and published by the government describing the various components of national income and output
More informationDistribution and Use of Income Accounts Main entries and Data Needs
An Introduction to System of National Accounts Integrated Transaction Accounts Lesson: VI Part I Distribution and Use of Income Accounts Main entries and Data Needs Third Intermediate-Level e-learning
More informationNotes on Accounts. Integrated accounts for total economy. Account 0: Goods and services account
Notes on Accounts This issue of National Accounts Statistics presents integrated economic accounts in which are included the Transaction accounts i.e., goods and services account, full sequence of accounts
More informationFifteenth Meeting of the IMF Committee on Balance of Payments Statistics Canberra, October 21-25, 2002
BOPCOM-02/29 Fifteenth Meeting of the IMF Committee on Balance of Payments Statistics Canberra, October 21-25, 2002 Valuing the Direct Investment Position in U.S. Economic Accounts Prepared by Ralph Kozlow
More informationImplementation of 2008 System of National Accounts - Challenges
Statistics and Applications {ISSN 2454-7395 (online)} Volume 16, No. 2, 2018 (New Series) pp 1-19 Implementation of 2008 System of National Accounts - Challenges A.C. Kulshreshtha 208 E, MIG Flats, Rajouri
More informationQuarterly Spanish National Accounts. Base 2008
28 November 2013 Quarterly Spanish National Accounts. Base 2008 Third quarter of 2013 Quarterly National Accounts (GDP) Latest data Year-on-year growth rate Quarter-on-quarter growth rate Third quarter
More informationFinancial Services. IMF Statistics Department
Financial Services IMF Statistics Department Outline Financial Services Central Bank Other financial services Provided in return for explicit charges; Provided in association with interest charges on loans
More informationTHE BALANCE SHEET. A. Introduction
XIII THE BALANCE SHEET A. Introduction 13.1 A balance sheet is a statement, drawn up at a particular point in time, of the values of assets owned and of the financial claims - liabilities - against the
More informationOrig: EN 28 TH MEETING OF THE GNI COMMITTEE 6-7 MAY 2014 LUXEMBOURG, JMO BUILDING ROOM M1 STRUCTURE AND FORMAT OF THE GNP/GNI QUESTIONNAIRES 2014
EUROPEAN COMMISSION EUROSTAT Directorate C: National Accounts; prices and key indicators Unit C-3: Statistics for administrative purposes Eurostat/C3/GNIC/274: EN Orig: EN 28 TH MEETING OF THE GNI COMMITTEE
More informationNational Accounts (Income and Expenditure): Year ended March 2012
National Accounts (Income and Expenditure): Year ended March 2012 Embargoed until 10:45am 21 November 2012 Key facts In the year ended March 2012: Current price gross domestic product (GDP) increased 3.7
More informationSIMULATION STUDIES ON CAPITAL STOCK OF MACHINERY AND EQUIPMENT
SIMULATION STUDIES ON CAPITAL STOCK OF MACHINERY AND EQUIPMENT Introduction 1 This paper presents the results of four simulation studies carried out by the Singapore Department of Statistics (DOS) to assess
More informationNational Accounting. Introduction to Macroeconomics. October 7 th, 2011 WS 2011
National Accounting Introduction to Macroeconomics WS 2011 October 7 th, 2011 Introduction to Macroeconomics (WS 2011) National Accounting October 7 th, 2011 1 / 35 Why study National Accounting? National
More informationMEASURING GDP AND ECONOMIC GROWTH. Objectives. Gross Domestic Product. An Economic Barometer. Gross Domestic Product. Gross Domestic Product CHAPTER
MEASURING GDP AND ECONOMIC CHAPTER GROWTH Objectives After studying this chapter, you will able to Define GDP and use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationMeasuring Productivity in the Public Sector: A personal view
Measuring Productivity in the Public Sector: A personal view Matilde Mas University of Valencia and Ivie OECD WORKSHOP ON PRODUCTIVITY OECD Conference Centre Paris, 5-6 November 2012 [ 1 ] Problems faced:
More informationNational Accounts Estimates ( ) September 2018 issue
National Accounts Estimates (2015 2018) September 2018 issue 1. INTRODUCTION This issue of Economic and Social Indicators presents National Accounts estimates for the period 2015 to 2018. Concepts and
More informationNATIONAL ACCOUNTS STATISTICS TO KINGDOM OF TONGA. May Price: T$25.00
SDT: 35-07 KINGDOM OF TONGA NATIONAL ACCOUNTS STATISTICS 2001-02 TO 2009-10 May 2011 Statistics Department P.O. Box 149, Nuku alofa Government of Tonga Telephone: (676) 23-300 / 23-913 Email: dept@stats.gov.to
More informationSession 5 Supply, Use and Input-Output Tables. The Use Table
Session 5 Supply, Use and Input-Output Tables The Use Table Introduction A use table shows the use of goods and services by product and by type of use for intermediate consumption by industry, final consumption
More informationLesson: VII Expenditure Components of GDP: Part I
An Introduction to System of National Accounts Lesson: VII Expenditure Components of GDP: Part I Fourth Intermediate-Level e-learning Course on 2008 System of National Accounts September - November 2014
More informationHouseholds' economic well-being: the OECD dashboard Methodological note
Households' economic well-being: the OECD dashboard Methodological note Paris, September 2015 Gross domestic product (GDP) is the standard measure of the value added created through the production of goods
More informationPrimary Income. Introduction. Compensation of Employees
13 Primary Income Introduction 13.1 Primary income represents the return that accrues to resident institutional units for their contribution to the production process or for the provision of financial
More informationSupply & Use and Input-Output Tables for Ireland
Supply & Use and Input-Output Tables for Ireland This explanatory note is provided by the CSO to users of our annual Supply & Use Tables. It also describes the Input-Output Tables which are available every
More informationAnnual National Accounts
Annual National Accounts 2013 Est. by Statistics Act 9 of 2011 Namibia Statistics National Accounts : 2013 Agency 1 OUR MISSION In a coordinated manner we produce and disseminate relevant, quality and
More informationThe savings of households in the national accounts
The savings of households in the national accounts Catherine Rigo 1 Introduction The system of national accounts provides a harmonised accounting framework for analysing the accounts of the various sectors
More informationDistance Learning Programme. IAS Prelims INDIAN ECONOMY
Distance Learning Programme IAS Prelims INDIAN ECONOMY CONTENTS 1. Introduction to Economics 5-11 2. Concepts of National Income 12-20 3. Human Development 21-30 4. Poverty, Unemployment & Inequality 31-49
More informationE/ESCAP/CST(2)/INF/37
Distr.: For participants only 13 December 2010 English only Economic and Social Commission for Asia and the Pacific Committee on Statistics Second session Bangkok, 15-17 December 2010 Item 4 (b) of the
More information- output (value added by each producer); - income (all income generated); - expenditure (all spending on final demand).
ESA95 terminology The terminology used is in line with the conventions of the ESA95. The term GDP is now reserved for valuation at market prices while Value Added is used for other valuations of the aggregate
More informationGROSS DOMESTIC PRODUCT FOR 2011 FINAL DATA
GROSS DOMESTIC PRODUCT FOR 2011 FINAL DATA In 2011 GDP at current prices amounts to 75 308 million Levs. GDP at 2005 constant prices increases by 1.8 % compared to the previous year. GDP, current prices
More information