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IV. Household final consumption expenditure and gross capital formation Vu Quang Viet UNSD consultant.

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Presentation on theme: "IV. Household final consumption expenditure and gross capital formation Vu Quang Viet UNSD consultant."— Presentation transcript:

1 IV. Household final consumption expenditure and gross capital formation Vu Quang Viet UNSD consultant

2 Household income and expenditure survey and income in national accounts Employers’ imputed social contribution (calculated by statisticians and unknown to employees) particularly for the government sector to guarantee that contribution is adequate for the government to pay future social benefits to current employees in cases of defined benefit scheme; Correction by national accountants for fisim in interest payable and interest receivable and insurance service charges by national accountants in pension and insurance schemes in order to distinguish between service charges (production) and income flows; Imputation of services from owner-occupied housing, a purely national account concept.

3 COE receivable by household sector Compensation of employees (COE) Household survey National accounts COE ð Conceptually similar, they are income receivable by residents. COE based on establishment survey must be adjusted to exclude COE payable to abroad and include those earned from abroad. Employers' social contribution Less reliable Must be adjusted to include imputed employers’ social contributions

4 Mixed income receivable by household sector Mixed income Household survey National accounts Mixed income from agricultural activities (from sale and own consumption except owner-occupied housing) May be less reliable than info from NA For major crops, estimate output, IC and mixed income by land use and per yield, but for minor backyard activities, national accountants have to rely on household surveys Residential rental income and other rental income less cost Rely on household survey for this item or production statistics and real estate sector. Mixed income from other activities Rely on hH survey such as own- production of goods at home, own-construction, etc.

5 Property income and current transfers Mixed income Household survey National accounts Property income Current transfers Income taxes Social transfers Much less reliable May rely on banking statistics and government finance statistics Government finance statistics Government finance statistics, pension and insurance statistics

6 Analysis of country data Graphs show percentages of difference (SNA value – Survey value)/Survey value. In general, SNA values are significantly higher than survey values, except mixed income. COE by 20-45%, Wages & salaries 5-25%. Given wages and salaries are more reliable, focus should be on them, while social contributions may be estimated from administrative sources. Mixed income, exept Thailand, is generally over-estimated by HS, varies from -60% to 20%. Property and current transfers are extremely underestimated by HS. PCE are also underestimated by HS. Differences are at least 40% Even PCE of food are at least 30%. For PCE, Macao and Mongolia are exceptions, why? Gross capital formation is overestimated in Indonesia.

7 Compensation of employees

8 Mixed income

9 Property income

10 Social contributions, benefits & other current transfers

11 Final consumption expenditure & Purchased in the market

12 Food, manufactured goods consumption

13 Lessons drawn from county data From the data supplied by the countries participating in this workshop, it is clear that for national accounts purposes: –Data on household final consumption obtained by household survey is not comprehensive enough for national account purposes. –Data on compensation of employees is more comprehensive, but still need further analysis for weakness. It is thus important that GDP should be compiled using simultaneously by three approaches through the use of the commodity flow technique.

14 What to do about the discrepancy problem between HH surveys and National Account (NA)? Is the trend over time in HH survey the same as NA? Do you use survey results in any way in NA estimation? Or do you estimate GDP by final expenditure mainly by residual approach? Or supporting by commodity flow approach? Was there any improvement of HH survey over time in your country experiences?

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