Presentation on theme: "Supply and Use Tables in the Czech Republic"— Presentation transcript:
1 Supply and Use Tables in the Czech Republic Marek Rojíček
2 Supply and Use Tables (SUT) an important quality check Annual updating and balancing SUT at detailed product level has at least three main functions:They represent an integral part of, and check on, the national accounts estimates produced for the economy based on economic statistics and estimates.They represent an important tool for constant price estimates (double deflation ).They represent an important statistical tool for economic analysis purposes.
3 Introduction to Czech SUT until > SUT constructed only after GDP compilation (SUT for 1995 and > released), compiled on detailed CPA and NACE level (3-digit)from > whole time series of SUT compiled in aggregated form (2-digit CPA and NACE) within NA revision before EU entry (revised NA for ) + NA 2003, 2004 (preliminary)from 2005 onwards new system for SUT compilation introduced (norwegian software SNA-NT), up to now time series of 4 years compiled ( preliminary just finishing)
4 Timetable (year 2006)March - June --> compilation of SUT for 2004 (semi-definitive version) and 2003 (definitive version)MAIN features: complete SBS data, final government data, HBS, Balance of Payments, Price indicesAugust - September --> compilation of SUT for 2005 (preliminary versionMAIN features: partly SBS data, indices from quarterly SBS, preliminary government data, HBS, Balance of Payments, Price indices; structures for GO and IC from previous year, business statistics data
5 Data sourcesBalancing processParameters(tax rates,margins)Surveys,Administr.dataModellingSUT tables incurrentpricesSUT tables inprevious year‘sconstant pricesPrice indices
6 Preliminary version of NA have to be released by the end of September --> working version finished by the mid-Septemberframe data (GO, IC for industries finished by the end of August including all methodological corrections)only 2 weeks for balancing SUT in current and constant prices --> mostly based on extrapolation, confrontation with business statistics trends, special attention paid to important commodities (cars, energy, transportation etc.)there is strong advantage of BoP data --> trends in exports and imports influence significantly domestic aggregates
8 Structure of the SNA-NT system Database is divided into supply part (T1), use part (T2) and value added part (T3).2 main classifications:Industry classification (5-digit), which combines type of aggregate with industry code or other classification (e.g. COICOP or COFOG in final consumption)Product classification (6-digit adjusted CPA)Data for every combination of those 2 classifications are kept in the system in all valuation types (basic prices, taxes, subsidies, margins, purchaser´s prices)
9 Overview of classifications used As a base we used the 3-digit classification CPA, from which some commodity groups were separated (inward and outward processing, consumption of resident tourists abroad, self-supply, CFC in government and NISD sectors and some others). There is more than 1000 commodity groups defined in the Czech SUT.We defined 129 market industries, 41 non-market industries for central government, 53 for local government, 43 for NISDGFCF classified in the similar way as output (market, non-market) - not used up to now
10 It is possible to separate own account production „industries“ (imputed rent, selp supply, individual housing construction.) - not used up to nowGovernment final consumption can be split into COFOG groups (and similarly NISD consumption into COPNI groups) - not used up to nowCross classification for household final consumption (cca 200 categories – detailed COICOP)Imports and exports separately for goods and services
11 Balancing procedures in the SNA-NT For every product we have to define USER, into which the difference between source and use side is automatically allocated.The difference between source and use side can be split in the same proportion to the former structure of users or we can choose different method.Small differences can be eliminated by the in-built RAS procedure (holds the row and column totals).The changing in the value added made by balancing are automatically projected into T3-part (change of the operating surplus).
12 Constant price calculation of the SUT The constant price figures are compiled by deflating current values by price indices at the product level. This results in integratedLaspeyres volume indices and Paasche price indices.Each of the products might have three different price indices:Domestic production (Basic or producers' values)Imports (CIF value) Based on foreign trade statistics (Unit value for homogenous products) and other sourcesExports (FOB value)Based on foreign trade statistics (Unit value for homogenous products) and other sourcesThese three price indices are used to deflate the corresponding current price figures.
13 Deflating the supply table Domestic production at basic value Price index for each product:Producer price indices (PPI)Consumer price indices (CPI),Unit value price indices or “implicit” price indices, based on value and volume dataInput price indices used for non-market industries. Compiled by the Paasche formula, measuring the price the production factors.
14 Constant price estimates for taxes, subsidies on products in basic value “Tax rates" give taxes and subsidies on products as % of the product flows in basic values. Constant prices figures compiled by multiplying "Tax rates" from year t-1 with the constant price figures for the supply of products in basic values in year t.
15 Deflating the Use table Constant price figures for exports, specified by products Exports, in purchasers’ values minus trade margins Equals exports in producers’ values minus product taxes Equals to exports in basic values (in fact we do not consider taxes for exports)
16 Domestic use in basic value Equality in constant prices between the supply and use of each product:Constant price figure for Total Domestic Use of a product calculated as:Constant price figure for Total Supply minusConstant price figure for ExportsThe constant price figures for the various domestic uses of the product in basic values, calculated by distributing total domestic use in constant prices proportionally with the domestic uses of the product in current prices.This means that in basic values, the same price index is used for all domestic use of a product (intermediate consumption, final consumption, gross fixed capital formation and changes in inventories)
17 Strong and weak points of the Czech SUT + Good data sources for external trade+ SBS in all kinds of activities+ Long tradition of HBS+ Good price statistics (foreign trade, PPI, CPI)+ Advanced system for SUT compilation- Low reliability of intermediate consumption- Short time series of data at detailed product level- Insufficiantly detailed data on trade margins- Complicated access to administrative data (tax reports)- Low coherency with production statistics