Progress report on Expert
Groups on micro and
macro household statistics
WPNA meeting
October 2011
Maryse FESSEAU
(OECD – Statistic Directorate, National Accounts Division)
1
Outline of presentation
1. Update on the Expert Groups
2. First results related to National Accounts
3. Emphasize the household perspective through
National Accounts data at the international level
2
1. Update on the Expert Groups on
Households’ economic resources
3
Reminder
Two Expert Groups on Households’ economic resources

OECD Expert Group on Micro Statistics on Income, Consumption and
Wealth (EG ICW – 17 NSOs), aiming at:
– Pursuing methodological work to develop standards and guidelines for
measuring household wealth through surveys
– Proposing a framework for joint analysis of micro data on households
income, consumption and wealth

OECD-Eurostat Expert Group on Disparities in a National Accounts
Framework (EG DNA – 25 NSOs), aiming at:
– Using existing micro sources to produce indicators of disparities by group
of households consistent with SNA totals – feasibility study (country pilot
studies)
4
First meeting and inputs
EG ICW + EG DNA : first meeting in Paris, March 2011
EG ICW + EG DNA : new inputs required and initiated



EG ICW: Survey of country practices on wealth (micro) statistics
Sent to 34 countries (all NSOs represented in CSTAT (members and
observers), and non-OECD EU countries ); 31 answers.
EGDNA : Survey of country practices on Households National Accounts
compilation (from production to saving, incl. StiK)
Sent to 42 countries (OECD/EU27/EFTA/EG DNA). 39 answers.
EGDNA: Questionnaire comparing micro and macro data sources (for
income, consumption and wealth)
Sent to 25 EG DNA countries. 19 answers.
5
Next steps and meetings
EG ICW / EG DNA




2nd meeting (Paris, Dec 2011)
3rd meeting (mid-2012)
End-work: end 2012
Early 2013: draft final report to CSTAT for
comments under written procedure
6
2. First results related to National
Accounts
7
EG DNA survey on HH current accounts



Sent to 42 countries (OECD/EU27/EFTA/EG DNA)
39 responses (32 OECD, 24 EU27, India)
Focus:
– On annual data
– On current accounts: from production to saving, including
social transfers in kind

Main information collected for the HH sector:
–
–
–
–
–

Delineation
Method and source used by transaction
Adjustments made
Indicators released at the country level
Improvements planned in the medium/short term
Preliminary results: some answers still to be checked
8
EG DNA survey: sector delineation

Non-Profit Institutions Serving Households (NPISHs)
– Nearly 1/3 publish HH accounts mixed with NPISHs
Remark: 1 out of 4 in EU27 countries
– In most countries the absence of separate accounts reflects
a lack of data source
Households and NPISHs separately
Only Households and NPISHs combined
Households only
Total
Source: EG DNA survey 2011
All
Nb countries
25
12
1
38
OECD
EU27
Nb countries
Nb countries
66%
21
66%
18
32%
10
31%
6
3%
1
3%
0
100%
32 100%
24
9
75%
25%
0%
100%
EG DNA survey: sector delineation

Unincorporated enterprises (UE)
– Wide range of situations across the 38 countries
• 3 countries do not include UE at all
• 13 countries include all the UE
• Other countries include a part of them, using different criteria
and different tresholds
– Difference in the share of UE income in HH income (proxi.
mixed income as a % of disposable income)
All
Less than 10%
10% to less than 20%
20% to less than 30%
30 % to less than 50%
50% or more
Total
OECD
9
18
5
2
1
35
….could be due to delineation gaps
8
15
5
1
0
29
EU27
5
13
3
1
1
23
10
EG DNA survey: method and sources


Information by income/consumption transaction
Method: 4 response items
–
–
–
–

Direct estimation independent of other sector accounts,
Estimation using counterpart information from other sectors,
Estimation as a residual from the total economy
Not included
Sources: 6 response items, multiple choices allowed
–
–
–
–
–
–
Household survey,
Administrative records,
Mixed survey and administrative records,
Business sample survey,
Economic census,
Trade sources.
11
EG DNA survey: method and sources

Method by income transaction
12
Source: EG DNA survey 2011
EG DNA survey: method and sources

Sources by income transaction
13
Source: EG DNA survey 2011
EG DNA survey: method and sources

Method by consumption transaction
14
Source: EG DNA survey 2011
EG DNA survey: method and sources

Sources by consumption transaction
15
Source: EG DNA survey 2011
EG DNA survey: adjustments


Different type of adjustments: conceptual,
exhaustiveness, balancing
Not all countries implement the same adjustments…
% of countries applying the adjustment
OECD
EU27
Underground production (deliberate under-declaration
activity) by unincorporated enterprises generating
households' mixed income
84%
88%
92%
Underground production (deliberate under-declaration
activity) by corporations generating income transfers
received by households
58%
59%
71%
Fisim
82%
81%
92%
Illegal productive activities (e.g. prostitution, narcotics
production/distribution)
37%
41%
50%
5%
6%
4%
Illegal non-productive activities (e.g. extorsion) generating
income transfers received by households
Source: EG DNA survey 2011

All
….whereas some adjustments can have a strong
impact on the final amount (more than 80%)
16
EG DNA survey: social transfers in kind


Only 2 countries do not estimate a separate item for
STiK
Among the 36 countries that estimate STiK:
– 3 countries do not include Education
– 5 countries do not include all the Health components
% of countries that compile social transfers in kind including:
Health, entirely
Health related products obtained by households either with or whithout prescription
Medical, dental, and paramedical services delivered to outpatients
Services of general and specialists hospitals which provide in-patient services
Governement expenditures on services provided to individual pupils and students
Support in kind in connection with family/children
Support in kind in connection with unemployment
Support in kind in connection with housing
Other components
Source: EG DNA survey 2011
All
OECD
86%
90%
89%
90%
92%
94%
92%
97%
92%
94%
86%
84%
56%
48%
61%
55%
25%
29%
17
EU27
88%
92%
92%
88%
88%
88%
63%
71%
38%
EG DNA survey: aggregates published
In level (amount in national currency)
Compensation of employees (D1)
Total
(gross)
Total
(net*)
97%
Per
Per capita households/
Per CU
11%
0%
Disposable income (B6)
Final consumption expenditures (P3)
84%
95%
84%
26%
24%
0%
0%
Adjusted disposable income (B7)
Actual final consumption (P4)
76%
76%
71%
18%
18%
3%
0%
* net of consumption of fixed capital
In real growth (%)
Disposable income (B6)
Final consumption expenditures (P3)
Adjusted disposable income (B7)
Actual final consumption (P4)
Saving ratio (in %)
Source: EG DNA survey 2011
Total
(gross)
39%
74%
24%
32%
66%
Per
households/
Per CU
13%
3%
11%
0%
Per
capita
8%
8%
0%
0%
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EG DNA survey: conclusions





The HH sector is estimated by using mainly direct
and counterpart information
Micro and macro data sources are not completely
disconnected even if the HH accounts is affected by
adjustments
Sharing knowledge on country practices is crucial to
knowing whether gaps are significant
=> Especially where HH aggregates are used to
benchmark country performances
Countries could already improve the emphasis on HH
aggregates by publishing more aggregates
More than half of the countries are planning to work
on the HH sector in the medium/short term
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3. Emphasize the household
perspective through National
Accounts data at the international
level
20
The annual aggregates currently
emphasized at the OECD

National Accounts at a Glance (NaaG) 2010

OECD Factbook

How is Life ?
21
Annual aggregates currently emphasized
at the OECD
NaaG 2010
HOUSEHOLDS AGGREGATES
OECD Factbook 2010
Compensation of employees by activity
Social benefits to households (incl. STiK)
% of gross value added
HH Disposable income
In % of the disposable income of the Average annual growth rate (in
total economy
%), in real term
HH Adjusted disposable income
US $ at current PPPs per capita;
In % of the disposable income of the
total economy
HH Final consumption expenditures
% of GDP, annual growth rates (%)
in volume
Actual consumption
% of GDP, annual growth rates (%)
in volume
HH Saving rate
% of HH disposable income, Net
value*
Net lending/borrowing
Non-financial assets held by households
Financial assets of households
% of GDP
Financial wealth (assets minus liabilities)
* Net of consumption of fixed capital
How is Life ?
% of GDP,% of total general
government expenditures
US $ at current PPPs per
capita - Net value*
% of HH disposable income Net value*
US $ at current PPPs per capita
US $ at current PPPs per capita;
Structure (in %) by type of assets
US $ at current PPPs per
capita 22
Other annual aggregates could
be emphasized
Financial indicators:
 OECD financial Dashboard
Combination of financial and non-financial indicators
 Household net worth
Non-financial indicators, such as:
 Adjusted disposable income (as % of primary
income)
 Housing costs (as % of HH disposable income)
23
Other annual aggregates could be
emphasized
Adjusted disposable income (% of primary income)
= Do HHs benefit from the redistribution process?

24
Scope: countries with detailed information on the HH (S14) sector in the OECD database for 2000 and 2008
Other annual aggregates could be
emphasized

Housing costs (% of disposable income)
25
Scope: countries with detailed information on the HH (S14) sector in the OECD database for 2000 and 2008
Other annual aggregates could
be emphasized
CONCLUSIONS:
Financial indicators:
 Information available, work on-going
Combination of financial and non-financial indicators
 Work to be done, country coverage issue
Non-financial indicators:
 Information available, relevance of indicators should
be investigated
26
To go forward…

COMPILATION
– Encouraging the compilation of HH accounts close to SNA
for better homogeneity
– Encouraging the compilation of HH balance sheets

DATA COLLECTION
– Develop collection/exchanges on metadata

DISSEMINATION
– Paper on the EG DNA survey to share the information
– Introduction of new HH indicators in the current OECD
publications
– OECD financial Dashboard
– Press release on HH

Not forgetting: HH quarterly sector accounts !
27
Thank you for your attention.
28