suggestions for an nta satellite, an sna point of view
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Suggestions for an NTA Satellite, an SNA Point of View. By Dr. Jan W. van Tongeren , International Consultant on SNA and Macro Accounting for Policy Analysis, Delft, Netherlands, email: [email protected]. Themes dealt with. I. Concepts of SNA analysis II. Concepts of NTA analysis - PowerPoint PPT PresentationTRANSCRIPT
Suggestions for an NTA Satellite, an SNA Point of View
By Dr. Jan W. van Tongeren ,
International Consultant on SNA and Macro Accounting for Policy Analysis,
Delft, Netherlands, email: [email protected]
1
Suggestions for an NTA Satellite, an SNA Point of View
Themes dealt with
2
I. Concepts of SNA analysis
II. Concepts of NTA analysis
III. Review of NTA concepts
IV. NTA compilation
I. SNA analysis
3
2010 Netherlands SNA Data
4
Policy analyses supported by SNA accounts and concepts, SUT
5
Production Account
Value added -production approach:
:
Generation of Income Account
Value added -income approach:
Product accounts
Supply Use balances
GDP/Value added expenditure approach
Policy analyses supported by SNA accounts and concepts, IEA
6
Primary distribution of income account
= same identity holds for & Prop
Secondary distribution of income account
= +
=
Use of income account
Capital account
While SNA is a double bookkeeping system, please note that not all items (receipts and expenditures) are used to define major SNA concepts. Only receipts and expenditures of Ce, Prop, Trcur, and Trcap are needed to define ; &
II. NTA analysis
7
Analysis supported by NTA Accounts and Concepts
8
SNA Saving
Operating surplus & Mixed Income
NTA Life cycle deficit
NTA Satellite with 2010 Netherlands data
9
Selection SNA Variables (received and paid) for Use in NTA, NTA balances, general principles
10
NTA Life cycle deficit
National saving () using selected items of Prop & Trcur will only remain the same if following condition holds:
= 0
This conditional identity could be implemented by identifying for each expenditure a supporting revenue and vice versa for each receipt the expenditure for which it is used
By selecting all SNA Prop and Trcur variables, same age profiles of counterpart variables may neutralize impact on age profile of saving
Age profile
Age profile
Age profile
etc. etc.
By selecting a limited nr. of Prop and Trcur variables, under identity conditions as formulated, the number of artificially imputed age profiles may be considerably reduced
(Tentative) Selection SNA Variables for Use in NTA, practical implementation with 2010 Netherlands data
11
Included: All items in HH sector
Included: All items of GOV and NPI sector (related to financing GOV and NPI consumption)
However, Excluded: All counterpart of items in HH, NPI and GOV sector
Excluded: All items of NFC and FC sectors that have counterparts in NFC and FC sectors
In the selection a decision needs to be taken whether revenue or expenditure items should be selected
III. Review of NTA concepts
12
Social Transfers in kind should not be included in NTA
13
Mixed income should be imputed for HH durables, no capital component of mixed income of non-market output (?)
14
Production taxes and subsidies may not be deducted from HH final consumption
15
A distinction should be made between pension premiums and benefits of funded and unfunded schemes
16
A distinction should be made between labour income and remittances to/from abroad
17
Current transfers versus Capital transfers, criteria
18
Capital transfers only occur if an ASSET is transferred
Concept of asset may be changed between SNA and satellite accounts (e.g. HH durables, human capital and expenditures on education and health, R&D)
Capital transfers may be in CASH and IN-KIND
Capital transfers IN-KIND may concern TANGIBLE, INTANGIBLE AND FINANCIAL assets
Capital transfers if one of the parties considers the transfer as a capital transfer (e.gh. Development aid based on current GOV budget)
For total economy K=Snal + Srow; for sectors K=S + TrCap + Lfin
Current transfers versus Capital transfers, examples
19
Transfer of house between parents and children (in-kind)
Transfer of funds between parents and children under condition that they purchase a house (cash)
Reimbursement by insurance companies for damage to buildings, equipment, infrastructure, caused by fire and adverse weather conditions (cash)
Transfer of defense and other equipment between GOVs (in-kind)
Funds provided by GOVs to GOVs for building roads and other infrastructure (cash)
Transfers between parents and children for purposes of education provided human capital is recognized as asset in satellite accounts
Cancellation of debt between GOVs and between parents and children
Large donations by individuals and enterprises to NPIs (universities, research centers, etc.), presumably for purposes of investment
Bequests to children at death of parent (not explicitly mentioned in SNA)
IV. NTA compilation
20
NTA Compilation, NTA Manual
21
Adjust micro data by age groups based on HH related surveys to Macro (SNA) Totals
NTA Compilation, Conventional SNA compilation
22
Available data are incomplete; in annual compilation basic data cover approximately 50% of SNA variables
SNA structures of benchmark compilation (e.g. i-o coefficients) are used to complete needed information to estimate variables for which no basic data are available
SNA identities (e.g. supply-use identities, IEA distribution of receipts and expenditures) are used to arrive at consistent estimates
Including new micro HH data by ages implies that SNA compilation would need to be revised; estimates of Macro Totals would be changed if this information had been available at the time of the SNA compilation
NTA Compilation, Bayesian Compilation in SNA and Satellite Frameworks
23
Formalization of Bayesian estimation approach manually used in conventional national accounts compilation
Bayesian estimation approach uses four inputs:
Basic data of selected variables: age structure micro data, SNA macro estimates
Ratios: age structure composition of micro HH data, SNA coefficients: i-o coefficients, tax ratios, structure of composition of HH disposable income
SNA identities, identities between Macro-totals and sum of micro HH data
Prior reliabilities (standard deviations) of basic data on variables and ratios
Results of Bayesian estimation:
Posterior (adjusted) Bayesian estimates of all variables and ratios that are consistent,
Posterior standard deviations of all variables and ratios
Final consumption expenditure
167,065262,6555,155434,875
Labour income
201,69517,36059,207328,99652,4632,599328,996333,3245,4271,099
Net social contributions
5,23548,26087,225439139,96955141,214139,9692841,529
Social benefits other than social transfers in kind
5,23533,19468,798105,66543955105,665107,7212,304248
Taxes less subsidies
10,1813,264132,295-21257,62822132,295133,4471,995843
Net non-life insurance premiums
2,56513,9561,45430811,4653613,95615,8282,040168
Non-life insurance claims
2,5651,45413,95630811,4653615,82813,9561682,040
Miscellaneous current transfers
816103,229111,11311,13914,0536,4383,038120,806129,02012,7614,547
Operating surplus, net
82,57620,155102,731102,731
Property income
49,18870,891200,586210,70216,49111,79139,62416,68840814306,297310,086195,151191,362
Saving, net (SNA)
49,7077,003-19,52710,691-1,36146,513-29,866
NPISH'sTotal economy
Rest of the
world
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
ReceiptsReceipts
Disburse-
ments
Receipts
Disburse-
ments
Table 2f Example of ideal data conditions: SNA
variables selected for incorporation in NTA,
excl. counterpart variables
(actual figures)
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Non-financial
corporations
Financial
corporations
General
government
Households
Requires more detail to
identify counterpart
items
Requires more detail to
identify counterpart
items
General
government
HouseholdsNPISH's
Disposable income, net
147,538258,1263,794
Final consumption expenditure
167,065262,6555,155
Individual consumption expenditure
100,392262,6555,155
Collective consumption expenditure
66,673
Saving, net, NTA
-19,527-4,529-1,361
Social transfers in kind
-100,392105,547-5,155
Adjusted disposable income, net
47,146363,673-1,361
Actual final consumption
66,673368,202
Actual individual consumption
368,202
Actual collective consumption
66,673
Saving, net, NTA
-19,527-4,529-1,361
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Table 2a HH final Consumption and Social
Transfers in kind
Before
"Adjustment for
the change in
pension
entitlements"
Households
Disposable income, net, SNA
258,126
Disposable income, net, NTA
260,126
Mixed income of owner-occupied dwelling services
5,000
Mixed income of services of HH durables
2,000
Mixed income of other non-market products
10,000
Mixed income for market output
17,890
Other disposable income
225,236
Final consumption expenditure, SNA
262,655
Final consumption expenditure, NTA
260,655
Consumption of owner-occupied dwelling services
5,000
Consumption of services of HH durables
2,000
Minus: consumption of HH durables
-4,000
Consumption of other non-market products
22,684
Consumption of market products
234,971
Saving, net, SNA
-4,529
Saving, net, NTA
-529
Receipts
Disburse-
ments
Table 2b HH durables and mixed income
General
government
HouseholdsNPISH's
Final consumption expenditure (in market prices)
167,065262,6555,155
Taxes less subsidies
Taxes on production and imports
71,363
Taxes on products
64,303
Other taxes on production
7,060
Subsidies
-9196
Subsidies on products
-3549
Other subsidies on production
-5647
Table 2c Product taxes and subsidies
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Non-financial
corporations
Financial
corporations
General
government
HouseholdsNPISH'sTotal economy
Rest of the
world
Social contributions and benefits in cash
Net social contributions
5,23548,26087,225439139,96955141,214139,9692841,529
Actual social contributions, pensions
47,94247,26447,94247,264678
Actual social contributions, non-pensions
83,10982,54283,10982,542284851
Imputed social contributions
5,2353184,11643910,1635510,16310,163
Social benefits other than social transfers in kind
5,23533,19468,798105,66543955105,665107,7212,304248
Social benefits, pensions
32,87632,04432,04432,876832
Social benefits, non-pensions
5,23531868,79873,6214395573,62174,8451,472248
49,70722,069-19,527-4,529-1,36146,359-29,712
Adjustment for the change in pension entitlements
-15,06615,220154-154
49,7077,003-19,52710,691-1,36146,513-29,866
Saving, net, before "Adjustment for the change in
pension entitlements"
Saving, net, after "Adjustment for the change in
pension entitlements"
Receipts
Disburse-
ments
Table 2d Pension premiums and claims
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Receipts
Disburse-
ments
Non-financial
corporations
Households
Rest of the
world
Labour abour income
5,4271,0995,4271,099
Current transfers
Remittances, to/from ROW
4551,2761,276455
Disburse-
ments
Receipts
Compensation of employees, to/from ROW
Table 2e Labour income and remittances
Receipts
Disburse-
ments
Receipts
Disburse-
ments