IV. Household final consumption
expenditure and gross capital
formation
Vu Quang Viet
UNSD consultant
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.
COE receivable by household sector
Compensation of
employees (COE)
Household
survey
National accounts
Conceptually similar, they are
income receivable by
residents.
COE
Employers' social
contribution
ð
COE based on establishment
survey must be adjusted to
exclude COE payable to
abroad and include those
earned from abroad.
Must be adjusted to include
imputed employers’ social
Less reliable
contributions
Mixed income receivable by household sector
Mixed income
Mixed income from
agricultural activities
(from sale and own
consumption except
owner-occupied
housing)
Household
survey
National accounts
May be
For major crops, estimate output, IC
less
and mixed income by land use
reliable
and per yield, but for minor
than
backyard activities, national
info
accountants have to rely on
from
household surveys
NA
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 ownproduction of goods at home,
own-construction, etc.
Property income and current transfers
Mixed income
Household
survey
Property income
Current transfers
National accounts
May rely on banking statistics and
government finance statistics
Much less
reliable
Income taxes
Government finance statistics
Social transfers
Government finance statistics,
pension and insurance statistics
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.
Compensation of employees
50
45
40
35
30
COE
25
Wages and salaries
20
15
10
5
0
T hailand
Korea
China
Macao
Indonesia
Mixed income
Mixed income
60
40
20
-60
-80
sia
Ch
ina
a
Mixed income
In
do
ne
-40
Ko
re
Th
ail
an
-20
d
0
Property income
Property income
sia
on
e
Ind
Ch
ina
Ko
r ea
d
Property income
Th
ail
an
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
Social contributions, benefits &
other current transfers
600
500
400
Social cont
300
Social benefits
200
O. Current transf
100
Ch
ina
M
ac
ao
M
on
go
lia
Ho
ng
ko
ng
In
do
ne
sia
a
Ko
re
Th
ail
an
-100
d
0
Final consumption expenditure &
Purchased in the market
180
160
140
120
100
80
60
40
20
0
FCE
es
ia
In
do
n
go
lia
M
on
ac
ao
M
ina
Ch
rea
Ko
Th
a il
an
d
Purchased (Mkt)
Food, manufactured goods consumption
100
80
60
Food
40
Manf. Goods
20
0
T hailand
-20
Korea
Macao
Mongolia
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.
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?