Task force on statistical units: survey of current practices 11th Meeting of the Advisory Expert Group on National Accounts New York, December 5 – 7, 2017 Peter van de Ven Head of National Accounts OECD

Background (1) SNA 2008 distinguishes two different types of statistical units: Establishment for the description of the production process in supply and use framework Institutional units for the description of income and finance in institutional sector accounts SNA preference for this distinction is challenged Brought by rapidly changing nature of production Trends in the collection of source data

Background (2) Review of the statistical units in the SNA Issue identified as part of the long-term research agenda (Annex IV 2008 SNA) Creation of ISWGNA Task Force on Statistical Units in the National Accounts (January 2017) Objectives of ISWGNA Task Force Assess country practices of statistical unit used Assess the advantages and disadvantages of the use of different statistical units Provide guidance on which statistical unit to be used for what purpose Formulate proposals for future SNA recommendations

Survey of current practices Survey sent to members of the task force 36 responses: 35 economies, AFRITAC west Eurostat also provided a report of survey conducted among European Union countries Focus of survey Statistical units included in business register; relationships maintained; use of single/multiple register Targeted unit for the compilation of institutional sector accounts, supply and use tables, regional accounts Type of source data used and reporting unit Adjustments made to source data or reporting unit to obtain the target unit

Summary of results Results show quite diverging practices across countries for statistical unit used Use of adjustments to arrive at targeted unit More likely to make adjustments to source data used in compiling institutional sector accounts (8 respondents do not make adjustments) and regional accounts (9 do not make adjustments) Less likely to make adjustments to source data used in compiling supply and use tables (16 respondents do not make adjustments)

Business register Most countries use a single business register If multiple registers are used, most countries maintain relationships Reasons for multiple registers: more than one statistical agency; one register does not fulfil the needs across survey programs Many countries identify multiple types of statistical units … However, if one unit is identified it is most likely establishment

Institutional Sector Accounts Enterprise and legal unit most common unit targeted for compilation Most countries use more than one type of source data: mainly administrative data and surveys If admin data used it is predominantly the legal unit Adjustments to arrive at targeted unit Half of the countries reported that the survey area takes respondent data and allocates/aggregates the data to the targeted unit National accountants can also adjust the source data to the appropriate unit at the aggregate level (7 countries)

Supply and Use Tables (SUTs) Statistical unit used in SUTs varies across countries: most common, establishment or kind-of-activity unit Source data mainly come from surveys (multiple type of units) and admin data (mostly legal unit) Half of the countries make adjustments to arrive at target unit Most often (13) supplementary information is collected directly from the enterprises Often (8) use employment data and/or administrative data When one type of unit in source data, no adjustment is applied => source unit = targeted unit (13 responses) … However, divergence in statistical unit used (6 enterprise, 4 establishment, 2 kind-of-activity unit, 1 local unit)

Regional accounts Almost all countries compile regional accounts Most countries target the establishment Only one country compiles regional SUTs Adjustments to arrive at targeted unit: Most countries use information on employment or compensation of employees to make adjustments No direct information seems to be available on operating surplus

Reasons for diverging practices? Choice of the statistical units due to practical considerations? Diverging interpretations of the SNA? More work is needed: To better understand the reasons behind the current country practices To improve the conceptual and analytical understanding of the impact of the different statistical units used in the national accounts

Next Steps Themes to address: Type of information used to make adjustments to the targeted unit Impact analysis of these adjustments Feasibility of compiling data at the establishment level Advantages and disadvantages of an integrated analysis of production, income and finance Creation of sub-groups of the task force to investigate the themes Type of information used to make adjustments to the targeted unit, whether this is based on a full set of information or on some indicator(s), either or not directly collected from survey respondents; (ii) an impact analysis of these adjustments; (iii) the feasibility of compiling data at the establishment level; and (iv) the advantages and disadvantages of an integrated analysis of production, income and finance (some countries do use the same statistical unit for supply and use tables and institutional sector account

Questions for the AEG What are your opinions on the reasons for divergence of country practices? Are the themes identified the main issues that should be investigated? Is anything missing?

Thank you for your attention!