IV. Household final consumption expenditure and gross capital formation

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?