Session 6 A consolidated European Union and Euro Area supply-use system and input-output tables Eurostat, Unit C2, Isabelle Rémond-Tiedrez Joint paper written by Rueda-Cantuche, J.M., Beutel, J., Remond-Tiedrez,I., Bouwmeester, M. C. and Oosterhaven, J.) WIOD meeting – Sevilla May 26th 2011 Project history Oct 2007: cooperation is set up – Eurostat National Accounts Unit – Institute for Prospective Technological Studies (JRC-IPTS) in Seville and – the Konstanz University of Applied Sciences. Early 2010, collaboration extended to : – EUROSTAT Unit E.7 (Environmental accounts and climate change) and its contractors May 2011: Eurêka data on line WIOD meeting – Seville May 26th 2011 Which selection of tables for European aggregates? Supply table (SUP) at basic prices for the 27 EU Member States, the European Union and euro area; Use table (USE) at basic prices broken down into domestic (USEdom) and imports (USEimp) uses for the 27 EU Member States, the European Union and euro area; Symmetric product by product input-output (SIOT) table broken down into domestic and imports uses for the European Union and euro area. WIOD meeting – Seville May 26th 2011 Which details for European aggregates? Current prices Years 2000 onwards 59 products (CPA) * 59 activities (NACE) 6 products * 6 activities WIOD meeting – Seville May 26th 2011 Data availability Official tables (ESA Transmission Program): – SUP yearly (table 1500) – USE at purchaser’s prices yearly (table 1600) – SIOT, SIOTdom, SIOTimp 5-yearly (tables 1700, 1800, 1900) Additional tables – USE at basic prices (1610) USEdom (1611) USEimp – Trade and Transport Margins (1620) – Taxes Less Subsidies (1630) WIOD meeting – Seville May 26th 2011 (1612) Official and additional tables 25 Official Additional 5-yearly average 20 yearly average (up to 2006) Number of countries 2007 15 10 5 0 SUP USEpp WIOD meeting – Seville May 26th 2011 SIOT SIOTdom SIOTimp USEbp Usedom Useimp TTM TLS Methodology 1. Estimate USE table at basic prices for every country with split import and domestic; 2. simply add-up the 27 tables 3. balance the intra-EU import table with the information on intra-EU exports 4. aggregate domestic and balanced intra-EU imports 5. transform European SUT into IOT -> technical paper http://epp.eurostat.ec.europa.eu/cache/ITY_SDDS/Ann exes/naio_esms_an1.pdf WIOD meeting – Seville May 26th 2011 Methodology, point 1: estimation of USE at basic prices Itineraries defined according to available data Purchaser's prices (excluding any deductible VAT) - trade and transport margins - non-deductible VAT - taxes on products + subsidies on products = Basic prices -> USE pp – TTM – TLS = USEbp Estimations of TTM, TLS not essential: TLS+TTM Assumptions: product technology assumption, proportionality of imports Examples WIOD meeting – Seville May 26th 2011 Data situation: 5 groups 30 Number of countries 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 EXCELLENT GOOD SATISFACTORY INCOMPLETE NON AVAILABLE WIOD meeting – Seville May 26th 2011 Estimation of USE at basic prices, examples for 2 data situations Good data situation: – SUP, USEpp, SIOT, SIOTdom, SIOTimp – Product technology assumption – Reverse model : SIOT, SIOTdom, SIOTimp Incomplete data situation: – SUP, USEpp – Previous years’ information -> itinerary – Split import/domestic WIOD meeting – Seville May 26th 2011 Good data situation SIOT SIOTimp SUP USEpp SIOTdom Itinerary 2: Reverse Model (dark blue) IMP Distinguishing domestic and import uses (bright green) USEbp (draft) Final demand Value added USEbp (final) USEimp(-1) USEimp WIOD meeting – Seville May 26th 2011 USEdom Incomplete data situation USEpp SUP TLS(-1) Itinerary 4: Merging valuation matrices IMP TTM USEbp (draft) USEbp(-1) Distinguishing domestic and import uses TLS TLS + TTM USEpp(-1) Value added USEbp (final) USEimp(-1) USEimp WIOD meeting – Seville May 26th 2011 USEdom The result: EU27 Symmetric Input-Output table Homogenous branches Other Financial Trade, Agriculture, Industry incl. Construction transport services and services hunting and energy and com- business fishing munication activities services 6 5 4 3 2 1 PRODUCTS (CPA) 6 223 3 630 23 558 2 824 173 007 45 984 Products of agriculture, hunting and fishing 256 642 219 335 519 579 358 832 77 135 2 420 959 Industrial products (incl Energy) 45 664 115 441 45 149 338 556 42 210 2 679 Construction work 179 001 250 806 827 984 116 605 721 866 35 294 Trade, transport and communication services 356 951 721 684 1 248 467 177 631 650 201 24 685 Financial services and business services 257 734 102 976 68 916 10 497 78 308 4 798 Other services 190 575 4 086 552 1 004 945 2 206 870 1 940 655 1 102 216 Total Domestic 599 238 1 888 186 16 658 2 619 Products of agriculture, hunting and fishing 43 707 33 206 67 847 31 600 576 283 7 079 Industrial products (incl Energy) 91 136 54 872 154 4 Construction work 3 259 7 307 38 242 1 288 12 326 315 Trade, transport and communication services 10 538 44 156 19 029 4 282 27 807 542 Financial services and business services 5 078 1 277 2 104 134 2 033 24 Other services 63 271 86 320 129 163 38 362 635 260 10 582 Total imports from third countries 93 482 81 898 76 874 17 346 66 135 4 598 Taxes less subsidies on products 205 755 4 787 947 1 060 653 2 412 907 2 108 873 1 258 968 Total intermediate consumption/final use at purchasers' prices 386 808 1 277 489 1 231 574 1 748 497 62 593 1 183 080 Compensation of employees 142 051 124 299 133 121 30 927 121 883 - 20 638 Other net taxes on production 147 093 435 521 163 027 25 797 197 842 19 726 Consumption of fixed capital 281 014 610 283 1 212 077 216 091 561 192 114 440 Operating surplus, net 428 108 773 309 1 647 597 241 887 759 034 134 166 Operating surplus, gross 659 622 2 183 919 3 003 470 2 318 655 176 121 2 063 997 Value added at basic prices 381 876 6 851 944 1 720 275 4 596 826 5 112 343 3 577 624 Output at basic prices WIOD meeting – Seville May 26th 2011 Total 7 255 226 3 852 483 589 699 2 131 556 3 179 619 523 230 10 531 812 22 187 759 722 1 312 62 737 106 353 10 649 962 959 340 333 11 835 104 5 890 041 531 642 989 005 2 995 097 3 984 101 10 405 783 22 240 888 Gross Final consumption ex- capital penditure formation 8 101 765 1 469 520 48 082 2 082 144 1 462 441 3 014 418 8 178 370 11 601 242 800 41 15 244 7 324 6 362 283 372 742 770 9 204 513 9 11 811 562 335 1 080 334 150 386 282 700 23 353 2 110 920 1 241 160 634 765 369 5 965 1 041 170 014 180 117 2 461 051 Exports Final uses at Total use at basic prices basic prices 12 11 10 381 876 126 650 13 075 967 607 2 999 462 6 851 944 2 160 1 130 576 1 720 275 232 739 2 465 270 4 596 826 187 583 1 932 724 5 112 343 16 622 3 054 393 3 577 624 1 419 785 11 709 075 22 240 887 36 054 13 867 1 025 507 799 1 267 521 104 366 2 124 812 6 83 730 20 994 5 382 125 505 19 152 5 863 18 597 7 948 544 570 572 1 533 531 117 185 929 205 1 269 538 6 318 1 543 288 13 208 852 25 043 956 Consistency: EU27 SUIO Tables versus Macro economic aggregates 2006 2005 2004 2003 2002 2001 2000 0,4% 0,2% 0,0% -0,2% -0,4% -0,6% -0,8% -1,0% -1,2% -1,4% Final consumption expenditure (Use table) Value added at basic prices (use table) WIOD meeting – Seville May 26th 2011 Gross capital formation (use table) Taxes less subsidies onproducts (use table) Next steps Dissemination of EU27 and EA17 data via Eurostat database Statistics in focus including environmental extension Data 2000-2006 now available; 2007 by September Nace rev 2: from year 2008 onwards – no backdata WIOD meeting – Seville May 26th 2011 Supply Use Input-Output Table Super Tool Comments, analysis : isabelle.remond-tiedrez@ec.europa.eu WIOD meeting – Seville May 26th 2011