Statistisches Bundesamt
German experiences in estimating
households’ non-financial assets
OECD Working Party on National Accounts and
Financial Statistics
Paris, 2-5 October 2007
Presented by
Oda Schmalwasser and Marc Peter Radke
Federal Statistical Office
oda.schmalwasser@destatis.de
Deutsche Bundesbank
marc-peter.radke@bundesbank.de
© Statistisches Bundesamt, Federal Statistical Office of Germany, National Accounts
Statistisches Bundesamt
Content
1. Introduction
2. Compilation of households’ fixed assets by the
Federal Statistical Office
3. Estimation of households’ stock of land underlying
buildings and structures by the Deutsche
Bundesbank
4. Example of use: Compilation of integrated financial
and non-financial household sector balance sheets
5. Conclusion
© Statistisches Bundesamt, Federal Statistical Office of Germany, National Accounts
Statistisches Bundesamt
1. Introduction
Availability of data on households’ non-financial assets
Code
Non-financial assets (AN)
Availability of data
AN.1
Produced assets
Partly available
AN.11
Fixed assets
Available, see section 2
AN.12
Inventories
Not available
AN.13
Valuables
Not available
AN.2
Non-produced assets
Partly available
AN.211
Land
Partly available
AN.2111
Land underlying buildings and
structures
Available, see section 3
AN.212..4
Other tangible non-produced
assets
Not available
AN.22
Intangible non-produced assets Not available
© Statistisches Bundesamt, Federal Statistical Office of Germany, National Accounts
Statistisches Bundesamt
2. Compilation of fixed assets
Sector S.11
Assets AN 1.1…
1
1
2
AN 1,1,1
.
.
.
.
Industries (A60)
.
2
...
an
...
...
AN 1,an,1
...
.
AN
Sector S.12
AN 1,AN,1
.
Fixed assets.
.
.
AN 1.1
Sector s
.
.
Sector S
a
AN a,1,1
.
.
.
.
.
.
.
.
.
.
.
.
...
60 AN 60,1,1
...
AN a,an,1
AN 60,an,1
...
...
AN a,AN,1
AN 60,AN,1
60
© Statistisches Bundesamt, Federal Statistical Office of Germany, National Accounts
AN a,an,s
AN a,an,S
Statistisches Bundesamt
2. Compilation of households’ fixed assets (2)
Traditional German non-financial enterprises: S.11+S.14
Dwellings by sector available
Basis for the further breakdown:
PIM information in a cross classification of

other buildings and structures (including major
improvements on land and costs of ownership transfer on
land)
 machinery and equipment
 intangible assets
for S.1 – S.12 – S.13 – S.15 = (S.11 + S.14)
by 60 industries (A60 of ESA 95)
© Statistisches Bundesamt, Federal Statistical Office of Germany, National Accounts
Statistisches Bundesamt
2. Households’ fixed assets (3)
Net stock at current replacement costs
Code
Fixed assets by category
2005
2005
EUR bn
% in S.1
AN.11
Fixed assets
3244
47.3
AN.111
Tangible fixed assets
3233
47.6
2948
86.0
AN.1112 Other buildings and structures
181
7.5
AN.1113 Machinery and equipment
100
10.6
4
60.0
12
18.9
AN.1111 Dwellings
AN.1114 Cultivated assets
AN.112
Intangible fixed assets
© Statistisches Bundesamt, Federal Statistical Office of Germany, National Accounts
3. Estimation of households’ stock of land
underlying buildings and structures
3.1
•
Background information
Characteristics of the “old” approach to the estimation of land underlying
buildings and structures by the Bundesbank
1.
Approach was inextricably linked with the estimation of fixed assets
2.
Approach was based on an updating procedure of former estimates of
fixed assets by Destatis under ESA 1979 and former land estimates
by the German Institute for Economic Research (DIW) and the
Deutsche Bundesbank
• Introduction of Destatis’ sectoral compilation of fixed assets required a “new”
approach to the estimation of land underlying buildings and structures
8
3.2
Data requirements
Aim of the estimation procedure was to compile
•
•
Market value and real stock of land underlying buildings and structures
(AN.2111) for households including non-profit institutions serving households
(S.14+S.15) for the period from 1991 to 2006
Breakdown of the results into
1. part of land (AN.2111) underlying dwellings (AN.1111)
2. part of land (AN.2111) underlying other buildings and structures
(AN.1112)
9
3.3
Data sources
1. Statistics on purchase values of building land published by Destatis
•
•
•
•
Transactions: sales volumes of building land (in sq.km) from 1964 up to 2007 (annual
data)
Transaction/market prices (in €/sqm)
Breakdown by building areas (business area, mixed business and residential area,
residential area, industrial area, village area)
No breakdown by sector and no breakdown into land underlying dwellings and land
underlying other buildings and structures according to ESA 1995
2. Statistics on the area of land classified by actual uses published by Destatis
•
•
•
Breakdown of the whole economy’s stock of land by kinds-of-use (in sq.km)
(quadrennial data: 1992, 1996, 2000, 2004)
Definition of item “areas and open areas underlying buildings” corresponds to land
underlying buildings and structures (AN.2111) according to ESA 1995.
No breakdown into land underlying dwellings and land underlying other buildings and
structures according to ESA 1995; no information on land (market) prices
10
3.4
Estimation procedure
Step 1:
Stock-flow calculation of land underlying buildings and structures at the
total economy level (S.1) and breakdown by building areas (business
area, mixed business and residential area, residential area, industrial
area, village area) from 1991 to 2006
Step 2:
Breakdown of the stock-flow calculation into land underlying dwellings and
land underlying other buildings and structures at the total economy level
(S.1)
Step 3:
Breakdown of land underlying dwellings and land underlying other
buildings and structures by institutional sector
11
3.5
Results (1)
Net stock of fixed assets including land underlying buildings and structures of the household sector
including non-profit institutions serving households (S.14 + S.15)
Other fixed assets
(AN.1113+AN.1114+AN.112)
6000.00
€ billion
5000.00
4000.00
Land underlying other
buildings and structures (part
of AN.2111 underlying
AN.1112)
3000.00
Other buildings and
structures (AN.1112)
2000.00
Land underlying dw ellings
(part of AN.2111 underlying
AN.1111)
1000.00
0.00
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
Dw ellings (AN.1111)
Year
Notes: Net stock of fixed assets is valued at replacement costs; land underlying buildings and structures is valued at market
prices.
12
3.5
Results (2)
Shares in net stock of fixed assets including land underlying buildings and structures of households
including non-profit institutions serving households (S.14 + S.15) (shares at the beginning of the year)
Dw ellings (AN.1111)
shares in net stock of fixed assets including land underlying
buildings and structures
1.000
0.900
Land underlying dw ellings
(part of AN.2111 underlying
AN.1111)
0.800
0.700
Other buildings and
structures (AN.1112)
0.600
0.500
Land underlying other
buildings and structures (part
of AN.2111 underlying
AN.1112)
0.400
0.300
Other fixed assets
(AN.1113+AN.1114+AN.112)
0.200
Households' housing w ealth
(dw ellings + land underlying
dw ellings)
0.100
0.000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Year
Notes: Net stock of fixed assets is valued at replacement costs; land underlying buildings and structures is valued at market
prices.
13
3.6
Assessment
• Estimation approach led to considerable improvements in data quality
• But results have to interpreted with due care because
1.
sectoral breakdown is based on assumptions (no sectoral data
available)
2.
estimates can be only considered as a lower limit of the “true“
market value (no information on market values of land which is
already built-up)
14
4.
Example of use: Compilation of integrated
financial and non-financial household sector
balance sheets
15
4.1 Compilation procedure
• Compilation of balance sheets for households including non-profit institutions
serving households (S.14+S.15) from 1992 to 2006
• Data sources and compilation:
1. Net stock of fixed assets (AN.11) from Destatis
2. Land underlying buildings and structures (AN.2111) from Bundesbank
3. Financial assets and liabilities (AF) from Bundesbank (financial accounts)
4. Net worth (B.90) compiled as residual
16
4.2
Results (1)
Balance sheet of households and non-profit institutions serving households (S.14+S.15)
(stocks at the beginning of the year)
10000.00
Liabilities (AF=AF.4+AF.7)
€ billion
8000.00
6000.00
Financial assets
(AF=AF.2+AF.3+AF.4+AF.5+AF.
6+AF.7)
4000.00
Land underlying buildings and
structures (AN.2111)
2000.00
Fixed Assets (AN.11)
0.00
Net Worth (B.90)
-2000.00
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
-4000.00
Year
Notes: Net stock of fixed assets is valued at replacement costs; land underlying buildings and structures is valued at market
prices. Financial assets and liabilities are predominantly valued at market prices.
17
4.2 Results (2)
Net w orth structure of households including non-profit institutions serving households
(S.14+S.15) (stocks at the beginning of the year)
8000.00
7000.00
6000.00
Net financial assets (BF.90)
€ billion
5000.00
4000.00
Non-financial assets
(AN.11+AN.2111)
3000.00
Net Worth (B.90)
2000.00
1000.00
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
0.00
Year
Notes: Net stock of fixed assets is valued at replacement costs; land underlying buildings and structures is valued at market
prices. Financial assets and liabilities are predominantly valued at market prices.
18
4.3
International Comparison
International comparison of households' net worth in per cent of nominal disposible
income (stock of net worth at the beginning of the year; nominal disposable income at the
end of previous year)
Canada
1000
France
900
800
Italy
700
Japan
%
600
500
United Kingdom
400
300
United States
200
Germany (w ithout
consumer durables)
100
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Germany (including
consumer durables)
Year
Source (except data for Germany): OECD, Economic Outlook, Vol. 2007/1, No. 81, June, Annex Table 58: Household wealth and
indebtedness, p. 298.
Notes: For Canada, Italy and the United States, data also include consumer durables. For Canada, Germany, France, Japan, the
United Kingdom and the United States, data also include non-residential buildings and fixed assets of unincorporated enterprises
and of non-profit institutions serving households, although coverage and valuation method may differ.
19
5.
Conclusion
• Data quality and data availability regarding non-financial assets and respecting
household sector balance sheets have been improved considerably by the latest
work of Destatis and the Bundesbank
• Potential fields of improvement:
1.
Regarding data availability: for example, collection of data on nonfinancial assets which have not yet been covered by the current
compilation approach
2.
Regarding data quality: for example, development of reliable valuation
methods for land taking into account regional differences
20