Part V. Balancing the system Marcel Pommée 9 November Balancing the system: Interaction and relations between the three systems Marcel Pommée Statistics Netherlands: National accounts in Practice

Relations between the three systems Part V. Balancing the system 9 November Relations between the three systems Supply and use tables Sector accounts Labour accounts (Extensions of the core system) Systems are interlinked and can enrich each other Statistics Netherlands: National accounts in Practice

Part V. Balancing the system 9 November Supply and Use Tables Supply table ( basic prices ) Margins Taxes Subsidies Use purchasers Value added = Important features: Focus on production process Provides information on important macro economic variables like: - Gross domestic product - Value added by industry - Price- and volume changes - Final expenditures - Etcetera Statistics Netherlands: National accounts in Practice

Part V. Balancing the system 9 November Institutional Sector Accounts Important features: Focus on (re)distribution of income, financial processes and accumulation of wealth Provides information on for example: - Saving - Lending, borrowing - Income and capital transfers - Etcetera I. Production account Uses (for all sectors excluding ROW) Resources Intermediate consumption 456,1 Output (basic prices) 870,4 B1g = Gross domestic product (mp) 414,3 Taxes less subsidies on products 50,9 Consumption of fixed capital 69,4 B1n = Net domestic product (mp) 395,8 921,3 II.1.1 Generation of income account Compensation of employees 238,9 Net domestic product (market prices) Taxes on production and imports 58,9 Less: subsidies -8,1 B2n = Operating surplus or mixed income 106,1 II.1.2 Primary distribution of income (for all sectors) Property income 222,9 Operating surplus or mixed income 238,6 56,4 -6,9 B5n = Net national income 400,1 228,8 623,0 II.2 Secondary distribution of income Current taxes on income, wealth 52,3 Net national income Social contributions 115,0 53,2 Social benefits 81,4 115,4 Other current tranfers 122,2 79,9 B6n = Net disposable income 393,5 115,8 764,4 II.4 Use of income account (households, government and NPISH) R Final consumption expenditure 343,3 Net disposable income Adjustment for change in net equity of households on pension funds 19,4 19,7 B8n = Net saving 50,5 413,2 III.1 Capital account ? in Assets in Liabilities Gross fixed capital formation 93,0 Net saving Less: consumption of fixed capital -69,4 Capital transfers, receivable 16,4 Changes in inventories -1,4 Capital transfers, payable -17,4 Acquisitions less disposals of valuables - Acquisitions less disposals of non- produced non-financial assets B8n = Net lending(+)/borrowing(-) 27,3 49,5 Statistics Netherlands: National accounts in Practice

Part V. Balancing the system 9 November Labour Accounts Important features: Focus on labour Provides information on all aspect of labour: - remuneration of labour - Labour volume - Types of labour - Etcetera Statistics Netherlands: National accounts in Practice

Part V. Balancing the system 9 November Link between SUT and institutional sector accounts Sector accounts: 5 sectors I. Production account Uses (for all sectors excluding ROW) Resources Intermediate consumption 456,1 Output (basic prices) 870,4 B1g = Gross domestic product (mp) 414,3 Taxes less subsidies on products 50,9 Consumption of fixed capital 69,4 B1n = Net domestic product (mp) 395,8 921,3 II.1.1 Generation of income account Compensation of employees 238,9 Net domestic product (market prices) Taxes on production and imports 58,9 Less: subsidies -8,1 B2n = Operating surplus or mixed income 106,1 II.1.2 Primary distribution of income (for all sectors) Property income 222,9 Operating surplus or mixed income 238,6 56,4 -6,9 B5n = Net national income 400,1 228,8 623,0 II.2 Secondary distribution of income Current taxes on income, wealth 52,3 Net national income Social contributions 115,0 53,2 Social benefits 81,4 115,4 Other current tranfers 122,2 79,9 B6n = Net disposable income 393,5 115,8 764,4 II.4 Use of income account (households, government and NPISH) R Final consumption expenditure 343,3 Net disposable income Adjustment for change in net equity of households on pension funds 19,4 19,7 B8n = Net saving 50,5 413,2 III.1 Capital account ? in Assets in Liabilities Gross fixed capital formation 93,0 Net saving Less: consumption of fixed capital -69,4 Capital transfers, receivable 16,4 Changes in inventories -1,4 Capital transfers, payable -17,4 Acquisitions less disposals of valuables - Acquisitions less disposals of non- produced non-financial assets B8n = Net lending(+)/borrowing(-) 27,3 49,5 Supply and use tables: 300 industries Supply table ( basic prices ) Margins Taxes Subsidies Use purchasers Value added = Cross classification for: - Output - Intermediate consumption Compensation of employees - Other taxes less subsidies on production - Final consumption expenditure Gross capital formation Statistics Netherlands: National accounts in Practice

Link between SUT and institutional sector accounts - example Supply table Sectors: Production account Industry Production value Forestry Private ent. State forestry dep. 150 100 50 Retail trade self employed part of enterprise 200 160 40 Banking 180 Total supply …………. S.11 S.12 S.13 S.14 S.15 ….. …… 100 40 180 50 160

Part V. Balancing the system 9 November Link between SUT and institutional sector accounts - overview Supply table ( basic prices ) Margins Taxes Subsidies Use purchasers Value added = I. Production account Uses (for all sectors excluding ROW) Resources Intermediate consumption 456,1 Output (basic prices) 870,4 B1g = Gross domestic product (mp) 414,3 Taxes less subsidies on products 50,9 Consumption of fixed capital 69,4 B1n = Net domestic product (mp) 395,8 921,3 II.1.1 Generation of income account Compensation of employees 238,9 Net domestic product (market prices) Taxes on production and imports 58,9 Less: subsidies -8,1 B2n = Operating surplus or mixed income 106,1 II.1.2 Primary distribution of income (for all sectors) Property income 222,9 Operating surplus or mixed income 238,6 56,4 -6,9 B5n = Net national income 400,1 228,8 623,0 II.2 Secondary distribution of income Current taxes on income, wealth 52,3 Net national income Social contributions 115,0 53,2 Social benefits 81,4 115,4 Other current tranfers 122,2 79,9 B6n = Net disposable income 393,5 115,8 764,4 II.4 Use of income account (households, government and NPISH) R Final consumption expenditure 343,3 Net disposable income Adjustment for change in net equity of households on pension funds 19,4 19,7 B8n = Net saving 50,5 413,2 III.1 Capital account ? in Assets in Liabilities Gross fixed capital formation 93,0 Net saving Less: consumption of fixed capital -69,4 Capital transfers, receivable 16,4 Changes in inventories -1,4 Capital transfers, payable -17,4 Acquisitions less disposals of valuables - Acquisitions less disposals of non- produced non-financial assets B8n = Net lending(+)/borrowing(-) 27,3 49,5 Supply table: - Output Taxes less subsidies on production Use table: - Intermediate consumption (Components of ) value added Final expenditure (consumption, gross fixed capital formation, change in inventories) Statistics Netherlands: National accounts in Practice

Part V. Balancing the system 9 November Link between supply and use tables and labour accounts Supply table ( basic prices ) Margins Taxes Subsidies Use purchasers Value added = Labour productivity Statistics Netherlands: National accounts in Practice

Part V. Balancing the system 9 November Relations between SUT, Sector accounts, Labour accounts and extensions Supply and use tables Sector accounts Supply table ( basic prices ) Margins Taxes Subsidies Use purchasers Value added = I. Production account Uses (for all sectors excluding ROW) Resources Intermediate consumption 456.1 Output (basic prices) 870.4 B1g = Gross domestic product (mp) 414.3 Taxes less subsidies on products 50.9 Consumption of fixed capital 69.4 B1n = Net domestic product (mp) 395.8 921.3 II.1.1 Generation of income account Compensation of employees 238.9 Net domestic product (market prices) Taxes on production and imports 58.9 Less: subsidies -8.1 B2n = Operating surplus or mixed income 106.1 II.1.2 Primary distribution of income (for all sectors) Property income 222.9 Operating surplus or mixed income 238.6 56.4 -6.9 B5n = Net national income 400.1 228.8 623.0 II.2 Secondary distribution of income Current taxes on income, wealth 52.3 Net national income Social contributions 115.0 53.2 Social benefits 81.4 115.4 Other current tranfers 122.2 79.9 B6n = Net disposable income 393.5 115.8 764.4 II.4 Use of income account (households, government and NPISH) R Final consumption expenditure 343.3 Net disposable income Adjustment for change in net equity of households on pension funds 19.4 19.7 B8n = Net saving 50.5 413.2 III.1 Capital account ? in Assets in Liabilities Gross fixed capital formation 93.0 Net saving Less: consumption of fixed capital -69.4 Capital transfers, receivable 16.4 Changes in inventories -1.4 Capital transfers, payable -17.4 Acquisitions less disposals of valuables - Acquisitions less disposals of non- produced non-financial assets B8n = Net lending(+)/borrowing(-) 27.3 49.5 Energy, Namea, TSA Labour accounts Statistics Netherlands: National accounts in Practice

Checks within each system SUT Production/Intermediate consumption ratio Analysis of price and volume changes Analysis of taxes and expenditure Comparison with figures for previous years Supply table ( basic prices ) Margins Taxes Subsidies Use purchasers Value added = Sector Accounts I. Production account Uses (for all sectors excluding ROW) Resources Intermediate consumption 456.1 Output (basic prices) 870.4 B1g = Gross domestic product (mp) 414.3 Taxes less subsidies on products 50.9 Consumption of fixed capital 69.4 B1n = Net domestic product (mp) 395.8 921.3 II.1.1 Generation of income account Compensation of employees 238.9 Net domestic product (market prices) Taxes on production and imports 58.9 Less: subsidies -8.1 B2n = Operating surplus or mixed income 106.1 II.1.2 Primary distribution of income (for all sectors) Property income 222.9 Operating surplus or mixed income 238.6 56.4 -6.9 B5n = Net national income 400.1 228.8 623.0 II.2 Secondary distribution of income Current taxes on income, wealth 52.3 Net national income Social contributions 115.0 53.2 Social benefits 81.4 115.4 Other current tranfers 122.2 79.9 B6n = Net disposable income 393.5 115.8 764.4 II.4 Use of income account (households, government and NPISH) R Final consumption expenditure 343.3 Net disposable income Adjustment for change in net equity of households on pension funds 19.4 19.7 B8n = Net saving 50.5 413.2 III.1 Capital account ? in Assets in Liabilities Gross fixed capital formation 93.0 Net saving Less: consumption of fixed capital -69.4 Capital transfers, receivable 16.4 Changes in inventories -1.4 Capital transfers, payable -17.4 Acquisitions less disposals of valuables - Acquisitions less disposals of non- produced non-financial assets B8n = Net lending(+)/borrowing(-) 27.3 49.5 Comparison with figures for previous years Development of statistical discrepancy Comparing transactions that should be linked in some way (for example interest paid and loans) LA Hourly wage rate Development of labour volume, number of jobs, etc.

Advantages of linking the three systems ► Consistency of all figures is guaranteed; ► Errors or unlikely figures that otherwise could be overlooked will be traced more easily, for example: - SUT <> LA: analysis of labour productivity development - SUT <> SA: comparing balancing items from sector accounts with SUT- figures (for example: household consumption from the SUT with household Disposable income and Saving from the sector accounts)

EXERCISE