1. An Integrated and Expanded Accounts for the New Digital Economy work in progress Ariel Coremberg

2. Digital Economy Puzzle Context
More Robots, less employment&productivity? Or the Neo Luddism + Protectionism biases of Public Policy and Public Opinion after Global Financial Collapse
You can see the computer age everywhere but in the productivity statistics. Solow 1987
Digital Revolution IoT, 3D printing, Big Data, Robots Everywhere but in Real GDP.

5. Digital Economy Puzzle: TFP slowdown
-Developed countries phenomena. -Hysteresis Effects of Global financial collapse of Transition: till organizational capital reallocates factors and output

6. AGENDA: HOW TO CAPTURE DIGITALIZATION AND ITS POTENTIAL
Which Sectors
Which Outputs, Inputs, Outcomes, Assets
Which type of Employment: between but mainly within sectors
Value Creation, Productivity
Scale & Market Power
Cross Borders Activity + Global Value Added Chain

9. NEED OF INTEGRATED APPROACH
WHICH PRODUCTS & SERVICES: DIG & NOT DIG
WHICH ACTIVITY: INCLUDING SECONDARY & ANCILLARY UNITS
FOR WHAT: PRODUCTION OR LEISURE
WHO OWNS ≠ WHO PRODUCE / FOR HIRE VS IN HOUSE
WHERE: GVC

10. An Integrated and Expanded Accounts for the New Digital Economy
Supply and Demand Side focus on Activity For Hire & In House by Firms & households Satellite Account For Production, Productivity & Leisure: Welfare -Expand SNA frontier

11. Expanding SNA frontiers: Welfare & Sustainability Frontier (DIG KLEMS+N)
Production Frontier: Peer to Peer activities.
For hire +
In house Activities by firms -reclassification
In house by Households –Expand GDP frontier
Leisure Activities (Non Market Production of services by households (beyond dwelling scies. Provided by owner occupiers houses-Schreyer-Diewert (2014)+Schreyer Jorgenson (2017)). ERASE FRONTIER BETWEEN HOURS WORKED VS LEISURE HOURS
Assets Frontier: Durables + Intangibles + Natural Capital (Coremberg 2015)

12. An Integrated and Expanded Accounts for the New Digital Economy
-GDP & BEYOND TOWARDS WELFARE
-Integrated & Expanded Account: Jorgenson & Selznick (2015), Jorgenson Schreyer (2017)
-Production by Activity + Productivity
-Income Flows (full consumption)
-Stock-Assets (durables+…..)

13. Which Sectors

14. Dwelling Services & Airbnb Services
Uberization-Sharing Economy Peer to Peer Services What is new what is old
Dwelling Services & Airbnb Services
Business and Transportation Services + Uberization
Distribution Services
Financial Intermediation Services

15. ISIC
Underlying Transactions
Digital
Example
Potential Digitalization Reallocation & Value Creation
Productivity
G+I
Trade & Distribution Services
Amazon-Ebay-
Alibaba
Mercado Libre
Retail Stores &Shoppings Centers
More Hours: Working Time (for hire + in house by Firms and Households) +
Leisure Time
H+K
Dwelling Services
AirbnB
Trip Advisor
Travel & Real Estate Agencies I
Transportation Services
Uber
Taxi & Remises J
Financial Intermediation Services
Crypto Currencies
On line Banking
Crowd funding
Traditional Banks
I-Comunication&Information
Free Apps
Netflix
Waze
Spotify
Facebook
Instagram
Whats up
Skpe
TV & Cable Network- CABLE CUTS.
Free Assets Produced by House holds
Linux
Wikipedia & Other Free Share Software

16. THE CHALLENGE DEEP PROBLEM
Not only measuring the Price of new goods but mainly:
STEP BEFORE
WE NEED TRANSACTION LEVEL DATA OF PEER TO PEER ECONOMY (NOT USUALLY IN OFFICIAL SURVEYS)

17. Potential of Digitalization: flows
Measuring the Upper Bound of Own Activity which implicitly include digitalized activities

18. UBER BLOCK CHAIN FREE APPS Cars services Fuel Expenses
How to capture Digitalization: Generalization of Cavallo, Coremberg, Serebrisky (2018) + Ahmad Schreyer Coremberg proposal Tracking Input Method compatible with replacement costs
UBER
Cars services
Fuel Expenses
BLOCK CHAIN
Computer Servers Services
FREE APPS
Advertising Expenses

19. FREE APPS
Ahmad-Schreyer (2016) Triangular Definition

20. Free apps There is no free lunch: free is not free, someone is paying
Value of Free services= Value of Advertising Services
Or Nakamura & Solovehcnick (2015). Time to spent less than 0,5% of GDP

21. Transportation Services Potential of Digitalization-vrg Uberization
IADB Cavallo Coremberg Serebrisky (2018): Satellite Account of Infrastructure Services
Measurement of Energy, Transportation & Communications Activities: for hire + in house (Firms+ Households)
Transportation: Hire & Commuting, tourism, peer to peer (UBER) by households+ Internal Transportation of firms

22. Transport Activity by Provision Type
Source: Coremberg, Cavallo &Serebrisky (2018)

23. In house transportation by Institutional Sector
Source: Coremberg, Cavallo &Serebrisky (2018)

24. Share of Internal transport of companies of Total Transport Activity
Source: Coremberg, Cavallo &Serebrisky (2018)

25. Potential of Uberization Share transport of households with own vehicles in GDP
Source: Coremberg, Cavallo &Serebrisky (2018)

26. Potential digitalization of transportation of households by own vehicles: aggregate > 2% to official GDP: transportation activities by household vehicles-final consumption Uber & Carpool is a fraction of in house transportation by households

27. POTENTIAL DIGITALIZATION ALSO ATTAINS AGRICULTURE: for ex e-farming MANUFACTURING: for ex 3D printing USER SIDE

28. Potential of Digitalization: Stocks

29. G20 Complete System of National Accounts: not only GDP and Annual I-O
Financial Accounts
Wealth and Stocks
Other Changes of Assets Volumes

30. How to capture Digitalization: Stocks Coremberg (2007,2012) generalization of Hall Method+CHS (2006)
Market Value of Digital Firms= Present Value of Profits + Goodwill
Goodwill: expectations of future profits of digital economy

31. Which Assets
Coremberg (2016) &Coremberg& Nofal (2017)

33. EXPANDED KNOWLEDGE CAPITAL

34. Extended Accounting of Growth & Productivity

35. Extended GDP Growth Accounting
𝑝 𝑗 𝑉 𝑗 = 𝑖=1 𝑚 𝑟 𝑖,𝑗 𝐾 𝑖,𝑗 + ℎ=1 𝑛 𝑤 𝑖,𝑗 𝐿 𝑖,𝑗
𝐼 𝑘 = 𝐾 𝑘,𝑗 𝑘 𝑝 𝑗 𝑋 𝑉 𝑗 ,
with 𝐾 𝑗 𝑘 = 𝑖=1 𝑚 𝑟 𝑖,𝑗 𝑘 𝐾 𝑖,𝑗 𝑘 + ℎ=1 𝑛 𝑤 𝑖,𝑗 𝑘 𝐿 𝑖,𝑗 𝑘

36. Extended Accounting of Growth & Productivity
𝑉 = 𝜀 𝑘 𝐾 𝑘 + 𝜀 𝑛𝑘 𝐾 𝑛𝑘 + 𝜀 𝐿 𝐻 + 𝐴
𝜀 𝑘 = 𝐼 𝑘 + 𝛾 𝑘
𝐴 𝑀 = 𝐴 𝑉 + 𝛾 𝑘 𝐾 𝑘

37. Kk role
Kk Q
 Kk /H Q/H
 Kk TFPM if
𝜀 𝑘 > 𝛼 𝑘

39. CONCLUSIONS Most of the New Digital Activities are included in the GDP
Digital Economy expands SNA frontier
between firms and households: households as producers
From Durables to capital
New knowledge assets as intangibles are not recognized as K by SNA08
Not all digital activities are captured by basic statistics
Imputation methods are necessary to measure Effective and Potential Digitalization

40. CONCLUSIONS
Every new In house activity by household for the market expands Production and GDP frontier: Transportation ( Uber) ≥ 2%
In house by firms: Reclassification of activities
Integration and Expanded Accounts to include Dig not only by supply side but mainly by demand as inputs