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Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

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Page 1: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Statistics Canada System of National

Accounts: Some Applications and

Reflections

Presented by:Dr. Atif Kubursi

Econometric Research Limited

Page 2: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

The Economy is a System of inter-dependencies:

Between Companies Economic Sectors Communities Provinces and

Countries

2

Page 3: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Measures of Real Domestic Product by Industry

The L Aggregation of the Input/Output Table for Canada includes 235 Industries and 471 Commodities

The L Aggregation is used to generate estimates of Real Domestic Product by the 235 industries

Page 4: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Input/Output Applications

Impact Analysis Structural Analysis Simulations and

Forecasting Regional Planning

4

Page 5: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Impact Analysis

5

Gross OutputInitial expenditures Value AddedEmploymentImportsTaxes

Page 6: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Structural Analysis

Forward and Backward Linkages

Clusters and Compact Product Spaces

Multipliers Productivity Measures

Labour ProductivityTotal Factor Productivity

6

Page 7: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Simulations and Forecasting

Macroeconomic Simulations Industrial Details of

Macroeconomic Aggregates Spatial Allocations of

Macroeconomic and Industrial Forecasts

Policy Simulations

7

Page 8: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Regional Planning

Inter-Provincial Input/Output Tables

Spatial Allocation of Activities and Impacts

Simulations of Regional Impacts and Inter-Provincial Impacts

8

Page 9: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

The Structure of the Canadian Input/Output Table

They are rectangular, not square Leontief Systems

An Industry can produce more than one commodity and a commodity can be produced by more than one industry

The Use Matrix comprises the technology cooking recipes of the economy

The Make Matrix comprises the market shares of the different commodities

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Page 10: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Commodities

Industries

Final Deman

d

Row Tota

l

Commodities q

Industries gFinal

Demand Y YF YT

Column Total q’ g’ fT’

UV

F

The Canadian I/O Matrix

6

Page 11: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

fT’g’q’Column

Total

YTYFYFinal

Demand

gIndustries

qCommoditi

es

Row Tota

l

Final Deman

d

Industries

Commodities

U

V

F

The ‘MAKE’ Matrix

7

Page 12: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

fT’g’q’Column

Total

YTYFYFinal

Demand

gIndustries

qCommoditi

es

Row Tota

l

Final Deman

d

Industries

Commodities

UV

F

The ‘USE’ Matrix

8

Page 13: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

fT’g’q’Column

Total

YTYFYFinal

Demand

gIndustries

qCommoditi

es

Row Tota

l

Final Deman

d

Industries

Commodities

U

VF

The Final Demand Matrix

9

Page 14: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Total Value by Commodity

fT’g’Column

Total

YTYFYFinal

Demand

gVIndustries

FUCommoditi

es

Row Tota

l

Final Deman

d

Industries

Commodities

q’

q

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Page 15: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Total Value by Industry

fT’q’Column

Total

YTYFYFinal

Demand

VIndustries

qFUCommoditi

es

Row Tota

l

Final Deman

d

Industries

Commodities

g

g’

11

Page 16: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Commodities

Industries

Final Deman

d

Row Tota

l

Commodities U F q

Industries V gFinal

Demand Y YF

Column Total q’ g’ fT’

YT

Total Value of Primary Inputs

12

Page 17: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Commodities

Industries

Final Deman

d

Row Tota

l

Commodities U F q

Industries V gFinal

Demand Y YF YT

Column Total q’ g’

fT

Total Value of Final Demand

13

Page 18: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Logging and Forest Industry

VV

Commodity

Processing

Primary Inputs

Commodity used to produce another commodity

UU

YY

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Page 19: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Sawmill, Planing and Shingle Mills Industry

VV

Commodity

Processing

Primary Inputs

Commodity used to produce another commodity

UU

YY

from Logging and Forest Industry

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Page 20: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Residential Construction Industry

VV

Commodity

Processing

Primary Inputs

Commodity used to produce another commodity

UU

from Sawmill, Planing and Shingle Mills Industry

FF

YFYF

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Page 21: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

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Tourism Satellite Account

Objective of Accounts

•(a) bring the Canadian Tourism Satellite accounts into closer harmony with the international standards for Tourism Satellite Accounts, the most important being the Tourism Satellite Account: Recommended Methodological Framework (TSA-RMF) developed by the Commission of the European Communities, the Organisation for economic Cooperation and Development (OECD), the World Tourism Organisation (WTO) and the United Nations (UN), and approved by the United Nations Statistical Commission in March 2000.

•(b) bring the CTSA into closer congruence with user requirements, especially those of industry users, for analysis and information.

Page 22: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

The Connection of the Canadian TSA to the UN SNA93

The international framework of TSA-RMF is a satellite account of the UN System of National Accounts (SNA93), which in turn uses the concepts of and data compiled for, the Balance of Payments (BPM 5) of the IMF.

It also uses the relevant United Nations international classifications of products, industries and international transactions (ISIC, CPC and the BOP Classification of International Transactions in Services).

The Canadian TSA is a satellite account of the Canadian adoption of SNA 93 and BPM 5.

Page 23: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Differences between the UN Satellite Account and the Canadian One

The Canadian System of National Accounts diverges from the concepts of SNA 93 in some respects that affect the measurement of tourism. These include:

•The specification of definitions of final household expenditure and actual final consumption.

•The modified basic prices valuation of goods and services used in Canada

•Net valuation of the services of travel agencies and tour operators.

•The SNA 93 definition of business expenses, which includes accommodation and transportation as part of intermediate consumption

Page 24: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Final Household Expenditure and Actual Final Consumption

Page 25: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

The Modified Basic Prices Valuation of Goods and Services

Page 26: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Net Valuation of the Services of Travel Agencies and Tour Operators

Page 27: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

Definition of Business Expenses, Which Includes Accommodation and Transportation as Part of Intermediate Consumption

Page 28: Statistics Canada System of National Accounts: Some Applications and Reflections Presented by: Dr. Atif Kubursi Econometric Research Limited

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