9.2 STATISTICAL UNITS IN SUPPLY AND USE TABLES AND INSTITUTIONAL SECTOR ACCOUNTS Peter van de Ven Head of National Accounts, OECD Advisory Expert Group (AEG) on National Accounts Washington D.C., September 8 – 10, 2014

Introduction (1/2) SNA 2008 distinguishes two different types of statistical units: –Establishment in supply and use tables –Institutional units in institutional sector accounts Call for (re)considering statistical units, also call for possibly reconsidering classifications by industry Proposal for establishing a Task Force on Statistical Units, looking at it from a more fundamental point of view Going beyond the present standards of the 2008 SNA 2

Introduction (2/2) SNA 2008, para. A4.21: “At the present there are two reasons to have the concept of establishment within the SNA. The first of these is to provide a link to source information when this is collected on an establishment basis. In cases where basic information is collected on an enterprise basis, this reason disappears. The second reason is for use in input-output tables. Historically, the rationale was to have a unit that related as far as possible to only one activity in only one location so that the link to the physical processes of production was as clear as possible. With the change of emphasis from the physical view of input-output to an economic view, and from product-by-product matrices to industry-by-industry ones, it is less clear that it is essential to retain the concept of establishment in the SNA”. 3

Why reconsidering statistical units (1/5) Changes in economic environment: International fragmentation of production processes More generally, outsourcing (inside and outside an enterprise) of certain activities Increasing role of Intellectual Property Products Quickly changing organisational structures, etc.  Underlying assumption of homogeneity less apparent  More emphasis on “economic” view, instead of “physical” production processes  Establishments require more and more imputations of central services 4

Why reconsidering statistical units (2/5) Changes in collection of source data: Pressure to decrease respondent burden More and more use of administrative data Need to combine description and analysis of production process with, for example: Income and finance (recent financial crisis) Environmental issues (e.g. Green Growth) Trade (e.g. Trade in Value Added) Policy questions require increased flexibility, micro-macro linking  Move away from establishments, towards enterprises 5

Why reconsidering statistical units (3/5) International comparability issues Apparent differences in interpretation of present guidelines, sometimes related to availability of source data, but also for other reasons Two examples: –Delineation of quasi-corporations, impact on operating surplus of non-financial corporations –Delineation of institutional units, impact on e.g. gross debt as % of GDP 6

Why reconsidering statistical units (4/5) … 7

Why reconsidering statistical units (5/5) … 8

Proposal establishment Task Force (1/2) Mandate of the Task Force: To (re)consider the statistical units that are presently recommended in the 2008 SNA, and – if the Task Force has the opinion that the SNA-recommendations should be changed in this respect – to come up with concrete and implementable proposals for changing the current recommendations To come up with concrete suggestions, e.g. regarding the criteria for the recognition of separate units, which would be instrumental to an (enhanced) internationally comparable implementation To come up with concrete proposals, if needed, for classification by industry and possibly by institutional sector 9

Proposal establishment Task Force (2/2) Under the umbrella of the ISWGNA Regular reporting to AEG First progress report in 2016 Broad worldwide participation, not limited to national accountants 10

Issues to be addressed by the AEG Does the AEG agree that, in view of the changing economic environment, the differences in interpretation of the 2008 SNA, and the increasing pressure to reduce the respondent burden, an International Task Force on Statistical Units should be set up, which would look into possible amendments and/or further clarifications of the SNA. 11

Thank you for your attention! 12