1 / 14

Measuring Non-Market Production of Households OECD National Accounts Working Party Meeting Paris December 2010

Measuring Non-Market Production of Households OECD National Accounts Working Party Meeting Paris December 2010. Contact: nadim.ahmad@oecd.org and seung-hee.koh@oecd.org. Drivers.

harlow
Download Presentation

Measuring Non-Market Production of Households OECD National Accounts Working Party Meeting Paris December 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Measuring Non-Market Production of HouseholdsOECD National Accounts Working Party Meeting Paris December 2010 Contact: nadim.ahmad@oecd.org and seung-hee.koh@oecd.org

  2. Drivers Better understanding of comparability of material well-being: catalyst from Stiglitz and many national studies….etc

  3. Household production of non-market services SNA Production boundary includes goods produced on own-account but only dwelling services. Long debate on extension of production boundary to include other services – i.e. those that satisfy the third party criterion. But for a number of reasons, mainly the difficulty in determining a robust market price for these services, they have been excluded from the boundary.

  4. Boundary or not….. • ….there is merit in producing estimates, to give a better understanding of material well-being…. ……..Particularly in the context of international comparisons….. as the work demonstrates

  5. Methodology • Estimates the value-added of household production • Includes a labour component • And a capital component

  6. Valuing labour • Key is to estimate the cost of labour – two schools of thought • Replacement cost • Opportunity cost • Given a value, total labour costs = cost of labour*hours spent on own-account production of services

  7. OECD Time-Use Surveys • Survey of 16+ population: 1140 minutes per day broken down into: paid work, unpaid work, personal care, leisure, and other activities. • Unpaid work, broken down into: • routine housework; • shopping; • care; • volunteering; • and travel related activities. • Important to note that there may be some double counting.

  8. Valuing the price of labour Replacement cost approach: • Average hourly price of unregistered domestic servants and baby-sitters Opportunity cost approach: • Average post-tax hourly wage in total economy

  9. Valuing Capital services • Capital input (K) • PIM based - constructed from expenditures on consumer durables. • Value of capital services: = the price of capital services per unit of the net capital stock multiplied by the net capital stock K . Where the price of capital services is calculated as (r+d)*P(t) and r = real rate of return (4%) d = depreciation rate (20%) P(t) = price index of consumer durables • Again, some double counting…..

  10. Average hours worked - 2008

  11. Contribution of labour only % of GDP, 2008

  12. Total household production per capita converted with adjusted PPP, USD per capita, US=100

  13. Decomposing the changes

  14. Next steps Correct for double counting Refine capital estimates Break down production into subcategories Consider growth Gender issues Extending the concept from material well-being to broader notion of well-being to incorporate Leisure Extend coverage to other countries.

More Related