30 January – February 1,2013
Kingston, Jamaica
The Statistical Institute of Jamaica
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Coverage of all economic activities is an
important quality consideration for national
accounts
Exhaustive coverage is often difficult to achieve
due to data collection issues or the activity is
deliberately concealed
Under coverage can affect both level and trend
of the GDP
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Non-Observed Economy- that part of the
economy that is difficult to measure. Includes:
◦ informal sector production
◦ production of households for own final use
◦ underground production
◦ illegal production
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There are two approaches to measuring the
non-observed
1. Focus is on ensuring that all activities
including non-observed activities is a part of
the GDP
2. Focus is to study the informal sector,
estimating the size, examine the
characteristics of the sector
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The emphasis in the Jamaican national
accounts is to ensure the exhaustiveness of the
GDP
Does not estimate formal and informal activities
separately.
Recognition that these units are not captured
through the basic data gathering mechanisms
Alternate methods have to be developed to
estimate value added of these activities
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Supply based methods – data on the supply of
inputs such as labour are used to estimate
output
Demand based methods – production is
determined by using indicator data on specific
uses of a good or service
Commodity flow method – this method involves
balancing total supplies and uses of individual
products.
Restaurants and Eating Establishments
 HES –household consumption of meals away
from home
 Issues for consideration
◦ Includes restaurants, hotels, baking industry,
retail
◦ Purchasers values
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Tourism Expenditure consumption of food
outside hotels- purchasers prices
Business consumption in restaurants – SUT
The output of “formal” segment is estimated
using supply side data. Intermediate
consumption is estimated using surveys
The informal portion is therefore a residual of
total output less the formal segment
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Costs for the informal portion is usually
estimated from anecdotal information gathered
from some players in the industry
Extrapolation
 GCT returns
 Survey of Living Conditions
 Tourism expenditure on food outside hotels
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STATIN however recognises the importance of
an analytical study of the informal sector
There is a plan for a study using the mixed
survey methodology as recommended by the
ILO
Resource constraints
Mixed Survey have two phases
Phase 1: Identify informal production units or
Household Unincorporated Enterprises with at
least some market production (HUEMS)
The Labour Force Survey to be used
Phase 2: To gather information about the working
conditions and economic performance of the
informal production units
Thank you