Arthur Berger Regional Products and Income Accounts, Beijing, China, March 2010 Canadas Provincial and Territorial Economic Accounts

09/02/2014 Statistics Canada Statistique Canada 2 Outline 1.Regional Economic Accounts: Canadian context 2.Regional Input Output Tables 3.Regional Income and Expenditure Accounts 4.Regional GDP by industry

09/02/2014 Statistics Canada Statistique Canada 3 Part 1: Canadian context Principles for Canadian regional accounts: Integration of accounts – Input Output, Income & Expenditure Accounts, GDP by industry Standardization – common survey frame, classification systems, chart of accounts Coherence – establish control totals & adjust detail to add up to total Use administrative data and survey data

09/02/2014 Statistics Canada Statistique Canada 4 Part 1: Canadian context Legislative Requirements: Value added tax collected by federal government on behalf of provinces, allocated to those provinces based on regional economic accounts expenditure estimates Federal transfer payments to provincial governments also based on regional accounts data

09/02/2014 Statistics Canada Statistique Canada 5 Part 2: Regional Input Output Tables Topics Timing Detail Benchmarking role Data sources Balancing Deflation

09/02/2014 Statistics Canada Statistique Canada 6 Part 2: Regional Input Output Tables Timing: Annual regional Input Output tables are published 34 months after the reference period For example, 2006 I/O tables were published in November 2009 National I/O tables are published concurrently with the regional tables Most source data available 15 months after reference period, but some as late as 24 months

09/02/2014 Statistics Canada Statistique Canada 7 Part 2: Regional Input Output Tables Detail: Regional I/O tables are broken down into 300 industries, 727 commodities, 170 final demand categories This is the same detail found in the national I/O tables

09/02/2014 Statistics Canada Statistique Canada 8 Part 2: Regional Input Output Tables Imports & Exports Detail: 727 commodities 13 provinces and territories + rest of world Example: exports of bank and investment commissions from Ontario province to Quebec province were $600M in 2006

09/02/2014 Statistics Canada Statistique Canada 9 Part 2: Regional Input Output Tables Benchmarking Role: Regional I/O tables provide C$ benchmark for regional income and expenditure based GDP, and regional value added by industry Regional I/O tables add-up to the national I/O tables National K$ I/O tables provide benchmark for national real GDP by industry

09/02/2014 Statistics Canada Statistique Canada 10 Part 2: Regional Input Output Tables Data Sources: Industry estimates Final demand estimates

09/02/2014 Statistics Canada Statistique Canada 11 Part 2: Regional Input Output Tables Data Sources – Industry Estimates: Annual surveys, mostly establishment based, sampling designed to produce accurate estimates by province Samples are usually divided into three strata: take all (large companies that operate in more than one industry and/or more than one province) take some (medium sized companies) take none (smaller companies that operate in only one province and only one industry) Income tax data is used for take none stratum

09/02/2014 Statistics Canada Statistique Canada 12 Part 2: Regional Input Output Tables Data Sources – Industry Estimates: Other sources Labour expenses by industry – taxation data Construction – capital expenditure survey for output Financial industries – administrative data + enterprise survey data Income tax data + occasional surveys

09/02/2014 Statistics Canada Statistique Canada 13 Part 2: Regional Input Output Tables Data Sources – Final Demand Estimates: Personal expenditures: retail trade survey + survey of household spending + service industry surveys + administrative data Capital expenditures: capital expenditure survey Investment in inventories: industry surveys Government current expenditures: public accounts International imports and exports: customs data (data exchange with USA) for merchandise, survey data for services Inter-provincial imports and exports: combination of survey data and modeling

09/02/2014 Statistics Canada Statistique Canada 14 Part 2: Regional Input Output Tables Balancing: National & provincial/territorial supply/use data are balanced in successive iterations National balancing adjustments serve as a guide for provincial/territorial adjustments Implications at provincial/territorial level provide feedback loop for re-adjusting national estimates (i.e. Petroleum extraction = 7% of national GDP, 31% of Alberta provincial GDP)

09/02/2014 Statistics Canada Statistique Canada 15 Part 2: Regional Input Output Tables Deflation: Regional I/O tables are in C$ only. National I/O tables are deflated to K$.

09/02/2014 Statistics Canada Statistique Canada 16 Part 3: Regional Income and Expenditure Accounts Topics Timing Benchmarking Detail Data Sources Deflation

09/02/2014 Statistics Canada Statistique Canada 17 Part 3: Regional Income and Expenditure Accounts Timing: Preliminary estimates published 4 months after reference period (i.e estimates published April 2009) Revised estimates for most recent 4 years published 7 months later (i.e revised estimates published November 2009) Revisions incorporate most recent I/O tables + all other new information

09/02/2014 Statistics Canada Statistique Canada 18 Part 3: Regional Income and Expenditure Accounts Timing (continued): National IEA revised estimates for most recent 4 years published in May (i.e revised estimates published May 2009) Plan to move to single annual release of regional IEA, concurrent with national IEA by May 2013

09/02/2014 Statistics Canada Statistique Canada 19 Part 3: Regional Income and Expenditure Accounts Benchmarking: Regional IEA C$ benchmarked to regional I/O C$ (up to 2006 so far) Regional IEA C$ benchmarked to national IEA C$ (2007 & 2008) Regional IEA K$ benchmarked to national IEA K$ (all years) National IEA C$ benchmarked to national I/O C$ National IEA K$ not benchmarked to national I/O K$ National and regional GDP in IEA very similar to national and regional GDP by industry, but not identical

09/02/2014 Statistics Canada Statistique Canada 20 Part 3: Regional Income and Expenditure Accounts Detail - Aggregates: GDP at market prices income based (C$) and expenditure based (C$ & K$) Net Domestic Product at basic prices(C$)

09/02/2014 Statistics Canada Statistique Canada 21 Part 3: Regional Income and Expenditure Accounts Detail - Income: Labour Income – 16 industrial sectors Corporate Profits – total economy; no industrial detail

09/02/2014 Statistics Canada Statistique Canada 22 Part 3: Regional Income and Expenditure Accounts Detail – Expenditures: Personal Expenditures: about 60 categories of goods and services Capital Expenditure: Residential structures, buildings, engineering structures, 10 categories of machinery & equipment All broken down by government and business

09/02/2014 Statistics Canada Statistique Canada 23 Part 3: Regional Income and Expenditure Accounts Detail – Expenditures (continued): Imports and Exports: 9 goods categories, 5 service categories

09/02/2014 Statistics Canada Statistique Canada 24 Part 3: Regional Income and Expenditure Accounts Detail – Sector Accounts: Sources and disposition of personal income (includes persons, unincorporated businesses and non-profit institutions serving households) Government sector tax revenue, investment income, transfer payments, subsidies

09/02/2014 Statistics Canada Statistique Canada 25 Part 3: Regional Income and Expenditure Accounts Data Sources: Corporate profits – quarterly survey of financial statements, income tax data Labour income – monthly household survey of labour force, monthly payroll survey, administrative data

09/02/2014 Statistics Canada Statistique Canada 26 Part 3: Regional Income and Expenditure Accounts Data Sources (continued): Personal expenditures - monthly retail trade survey, annual survey of household spending, service industry surveys, administrative data Capital expenditures - annual capital expenditure survey, monthly construction payroll data, monthly manufacturing survey (shipments of building materials and machinery and equipment) and international trade data ( machinery and equipment)

09/02/2014 Statistics Canada Statistique Canada 27 Part 3: Regional Income and Expenditure Accounts Data Sources (continued): International merchandise trade – monthly customs data (provincial allocation is challenging) International services trade – quarterly and annual surveys Inter-provincial trade – model based on input output tables trade flows & aggregate production and demand data

09/02/2014 Statistics Canada Statistique Canada 28 Part 3: Regional Income and Expenditure Accounts Deflation: Personal expenditures – consumer price index Engineering construction expenditures – labour and material input prices Home & building construction expenditures – building price index Machinery and equipment – machinery and equipment price indexes

09/02/2014 Statistics Canada Statistique Canada 29 Part 3: Regional Income and Expenditure Accounts Deflation: Government current expenditures – hourly wages of government employees Exports – unit values, domestic producer price indexes (exchange rate pass-through assumption) Imports - unit values, foreign producer price indexes (exchange rate pass-through assumption)

09/02/2014 Statistics Canada Statistique Canada 30 Part 4: Regional GDP by industry Topics Timing Detail Data Sources Deflation

09/02/2014 Statistics Canada Statistique Canada 31 Part 4: Regional GDP by industry Timing: Same publication dates as the regional income and expenditure accounts

09/02/2014 Statistics Canada Statistique Canada 32 Part 4: Regional GDP by industry Detail: Same level of industry detail as found in the regional input-output tables

09/02/2014 Statistics Canada Statistique Canada 33 Part 4: Regional GDP by industry Data Sources: Monthly and annual industry surveys Monthly payroll survey Administrative data

09/02/2014 Statistics Canada Statistique Canada 34 Part 4: Regional GDP by industry Deflation:

09/02/2014 Statistics Canada Statistique Canada 35 Reference Documents Guide to the Income and Expenditure Accounts, Catalogue no X, Gross Domestic Product by Industry Sources and Methods with Industry Details, Catalogue no XIE, Chain Fisher Volume Index Methodology, Catalogue no MIE No. 42,