1. Good Morning ********************** Welcome to
ESTP course on National Accounts ESA 2010
Luxembourg, 15 May May Eurostat

2. Structure of the Course
First three days on basics of national accounting
Brief history of National Accounts (NA)
Overview of ESA 2010
Units and Sectors
Production, Expenditure, Income
Stocks and Flows, BoP
Last two days on specific topics:
Supply/Use Tables and Balancing
Employment
Price and Volume Measures and Purchasing Power Parities
Financial Accounts
Quarterly National Accounts and European Sector Accounts
FISIM
Government Finance Statistics
Parallel sessions on items 8, 14, 19 and 24

3. Item 1: Introduction to National Accounts
ESTP course on National Accounts ESA 2010
Luxembourg, 15 May May Eurostat

4. A bit on History of NA
Two main characteristics of the modern NA: consistent bookkeeping system and macroeconomic theory.
Double entry bookkeeping: Luca Pacioli 1494
Tableau économique (1758) by François Quesnay: economic circuit, economic flows between sectors (landowners, farmers, artisans and merchants)
John Maynard Keynes 1936: modern macroeconomics, role of government
Wassily Leontief, input-output analysis (Nobel Price 1973)
Richard Stone (Nobel Price 1984); flowed into UN System of National Accounts

5. Modell of the National Economy

6. The System of NA
"The aim" of NA: measure value added created in one period (GDP)
production  value added  income  use of income (expenditure)
UN level: SNA
EU level: ESA
Harmonised concepts, methods, definitions, classifications and recording/bookkeeping rules

7. SNA and ESA
UN level:
SNA 1993
SNA 2008
EU level:
ESA 1995
ESA 2010

8. Key features of the System
The value added of NA: It is a complete and consistent system!
Basic macroeconomic identities hold;
supply = use
It is a complex interlinked system
Three approaches to measure GDP: Production Approach (PA), Expenditure Approach (EA) and Income Approach (IA)
Different Sources and different Methods
Balancing!
The sequence of accounts:
production, distribution of income, use of income

9. The three Approaches to GDPPA EA IA
Output
Total final cons. expend.
Compens. of employees
- Intermediate consumption
by households
+ Gross operating surplus
GVA (bp)
by NPISH
and mixed income
+taxes on products
by general government
+ taxes on production
- subs. on products
+ gross capital formation
and imports
GDP (mp)
GFCF
- subsidies
changes in inventories
GDP
acqu. less dispos. Valuables
+ Exports
- Imports

10. Further features of the System
Satellite Accounts: for specific needs
e.g. Economic Accounts for Agriculture, Environmental Accounts, Tourism, Health Care.
Supply and use tables / symmetric input-output tables: details of the production process and flows of goods and services.
Price and Volume Measures

11. The Uses of NA
for economic analysis (structural analysis, business cycle analysis)
for policymaking (productivity, growth, employment etc.)
for monetary policy-making
for financial markets, businesses
for research purposes
and for administrative uses

12. Administrative Uses of NA
EU own resources purposes
VAT based own resource
GNI based own resource
EU structural funds
Surveillance purposes
Excessive Deficit Procedure (EDP)
Macroeconomic Imbalances