Introduction to the System of National Accounts (SNA) Lesson 9

1. Introduction to the System of National Accounts (SNA) Lesson 9 Data Sources for Estimating GDP

2. Censuses (1) • Population census: • Size of population by gender and age • Growth rates • Housing, employment • Agricultural census • Crop production • Livestock type and numbers • Income and expenditure • These censuses are usually carried out every ten years and provide the benchmark figures which can be extrapolated by volume indicators for the years between censuses.

3. Censuses (2) • Industry • Production • Inputs • Capital formation • Employment • Inventories • Housing • Numbers • Type of construction • Facilities • Year when built • Benchmark estimates extrapolated for years between censuses

4. Living Standards Measurement Study • The LSMS is a World Bank program helping countries to measure living standards through household surveys and community surveys. • LSMS surveys include modules on a large number of demographic, social and economic topics. • LSMS surveys provide benchmark data for national accounts on household expenditure and income, employment, household and business assets, food intake ….

5. Enterprise surveys (1) • Cover enterprises operating from fixed locations • Often carried out annually but in some countries less frequently • Collect data on sales, purchases, inventories, wages and employment. • May be tailored to the kind of activity, e.g.: • Retail outlet • Restaurant • Factory

6. Enterprise surveys (2) • Short or long questionnaires? • For the national accounts we are mainly interested in wages and salaries paid and profits earned. • Can we ask directly for profits? • Or do we need longer questionnaires asking about all outputs and all inputs? • Some countries have tried experiments.

8. Household Surveys • Income and expenditure surveys • Monthly, quarterly, annually ? • Diaries or memory • Recall period • Income/expenditure consistency • Labor force surveys • Monthly, quarterly, annual • Working or not • Earnings • Kind of activity • Occupation

9. Combined Household/Enterprise Surveys (1-2 Surveys) Household survey (1) • Usually a labour force survey • Extra questions included to determine if anyone in the household is running a business • These households form the survey frame for the enterprise survey Enterprise survey (2) • Type of business • Number of employees • Family workers • Sales • Business expenses • Value added;

10. Administrative sourcesGovernment accounts • Government accounts • Budget, provisional, final. • IMF Government Finance Statistics. This is a better source for the national accounts than the government accounts themselves. • Government Final Consumption Expenditure (GFCE) • Gross Fixed Capital Formation (GFCF). This where you will find expenditures on infrastructure. • Strategic stocks • Consumption of fixed capital (CFC)

11. Administrative sourcesGovernment Consumption of Fixed Capital • Government CFC is the using up of government’s fixed capital assets and is an important part of the costs of producing government services. • The SNA requires estimates of CFC in both government final consumption expenditure (part of GDP(E)) and in government value added (part of GDP(P)). • The correct procedure is to estimate PIM from a perpetual inventory model (PIM). • If you have no PIM, you can use “depreciation” if this is shown in the government accounts. But it should be at least 5% of government final consumption expenditure (GFCE) • If you have no PIM and no depreciation in the government accounts, make an assumption that CFC is between 5%-7% of GFCE depending on the level of economic development .

12. Administrative sources Trade and Taxes • Merchandise trade statistics • Household consumption • Intermediate consumption • Capital formation in plant and machinery • Tax records • Income tax • Sales taxes and VAT • Excise duties on alcohol and tobacco

13. Administrative sourcesRegulator records • Central bank data on the commercial banks and other financial institutions • Insurance regulator • Vehicle registration records • Building permits

14. Administrative sources Private sector • Company accounts • Chambers of commerce • Membership lists • Business surveys • Business registration records

16. International SourcesFAO Food Balances • For 200 countries and 200 crops • Total domestic supply: • Domestic production, imports, exports, change in stocks • Intermediate and final uses: • Feed • Seed • For processing • Consumption • Quantities only

18. International sourcesOECD and other countries • OECD • Input output data bank • Developing as well as developed countries • Intermediate consumption coefficients for 47 kinds of activities. • Other countries’ data • Living Standards Measurement Studies surveys • Country reports

19. Lessons? • National accounts draw on the full range of statistics collected by the statistical office. • Some will be out of date and most will need adjustments. • National accounts in all countries rely on administrative data: • Government • Regulators • Private sector • Don’t forget international sources. • You can also borrow from another country