1. Second homes abroad introduction
Agenda item 8
Second homes abroad introduction
Ann Lisbet Brathaug
Head of Division for National Accounts

2. Background
Ownership of second homes abroad has increased substantially, especially within European countries
Why
general growth in households’ income
more leisure time and longer holidays
liberalisation of capital flows
cheaper and more efficient transportation
relaxation of border controls, making it easier for people to move between countries
labour mobility

3. Main principles Three fundamental national accounts concepts
Which economic values are involved?
Dwellings
Who are the economic agents or transactors involved?
Owner of the dwelling
Occupier of the dwelling
What kind of economic transactions are taking place, what events or actions are the economic values subject to?

4. Figure 1: Direct ownership of second homes abroad
Country A
Country B
Dwelling
Owner
Financial claim
Notional
enterprise
Ownership to producing asset

5. Figure 2: Generation and distribution of income from second homes abroad
Country A
Country B
Dwelling
Owner
Property income
Production
Notional
enterprise
Operating
surplus

6. Figure 3: Generation, distribution and use of income from second homes abroad
Country A
Country B
Dwelling
Owner and occupier
Property income
Production
Notional
enterprise
Operating
surplus
Travel, exports (credit)
Travel, imports
Consumption

7. Important considerations
Does production (and consumption) take place regardless of whether the dwelling is inhabited or not?
Second homes is by definition not occupied full time
Generation of income to owner only if production takes place
Consumption of dwellings (and exports/imports) only if production takes place
Lack of statistics

8. Two papers
The Norwegian experiences in estimation economic stocks and flows
WTO: Vacation Home Ownership in a globalized world