1 ADDITIONAL OECD REQUIREMENTS OF ANNUAL CAPITAL STOCK AND RELATED DATA OECD National Accounts Experts Meeting Chateau de la Muette, Paris 7-10 October 2003

2 ADDITIONAL OECD REQUIREMENTS OF ANNUAL CAPITAL STOCK AND RELATED DATA The OECD currently collects only a limited amount of capital stock data relating to non-financial assets – see the appendix to the paper. This limits the possibility of studies on the origin of growth and of international comparisons of rates of return and household assets The current OECD/EUROSTAT questionnaire (table 1400) asks for –Fixed assets for the total economy by –Industry (A17) by product (Pi3) for –Gross and net at –Current prices, constant prices and historical cost

3 ADDITIONAL OECD REQUIREMENTS OF ANNUAL CAPITAL STOCK AND RELATED DATA The current questionnaire also collects detailed financial accounts data by –Institutional sector and sub-sector by –Instrument for –Transactions, revaluation accounts and balance sheets The current questionnaire does not cover at all non financial assets of households.

4 ADDITIONAL OECD REQUIREMENTS OF ANNUAL CAPITAL STOCK AND RELATED DATA The OECD proposes to pursue three separate streams of analysis requiring additional non-financial capital stock data: –Multifactor productivity –Rates of return –Household saving It also proposes to publish national balance sheets in current prices and in real/volume terms.

5 MFP REQUIREMENTS Capital services are the appropriate capital measure to use, but are only available for a few countries OECD calculates its own capital services estimates using GFCF of fixed assets by product (Pi6) from the OECD’s ANA database. Would like volume estimates of gross capital stock of fixed assets at the Pi6 product level to- –Use in cases where the available GFCF data are insufficient –As an editing tool for checking its estimates of capital services

6 RATES OF RETURN REQUIREMENTS The OECD would like to derive and publish estimates of the rate of return (i.e. NOS/NCS) for the total economy and the corporate sector at, where possible, the A6 industry level. To do this the OECD needs estimates of net capital stock of fixed assets at the A6 industry level for total economy and the corporate sector.

7 HOUSEHOLD SAVING REQUIREMENTS Ross Harvey’s paper Comparability of Saving and Profit Ratios presents alternative saving ratios and variables that could be used when analysing saving ratios. The requirement for the combined household and NPISH sectors for non-financial assets is: –Nominal holding gains and losses- Total Dwellings Tangible non-produced assets (land) –Closing balance sheet- Total Dwellings Tangible non-produced assets Consumer durables –COFC of consumer durables

8 NATIONAL BALANCE SHEET REQUIREMENTS The OECD would like to publish current price and real/volume balance sheets for the total economy to fill an important gap. The OECD questionnaire already includes current price estimates of the stock of fixed assets and financial assets and liabilities. The additional data requirement is for: –Inventories, valuables and non-produced assets at current prices –Non-financial assets at constant prices OECD would derive real estimates of financial assets and liabilities

9 PROPOSED EUROSTAT REVISION TO ITS ANNUAL QUESTIONNAIRE EUROSTAT is developing a proposal to revise the questionnaire it sends to EU countries. Two pertinent tables are: –Table 2000 (replaces table 1400) - Cross classification of fixed assets by industry (A6) and product (Pi6) at current and constant prices for gross and net capital stock. –Table 2600 (new) – Balance sheets for non-financial assets by institutional sector at current prices. The OECD requirements would be well met with in addition: –Table 2600 at constant prices –Household (+ NPISH) sector: nominal holding gains/losses; non- financial asset balance sheet data; and the COFC and stock of consumer durables