Suggestions for an NTA Satellite,
an SNA Point of View
By Dr. Jan W. van Tongeren ,
International Consultant on SNA and Macro Accounting
for Policy Analysis,
Delft, Netherlands, email: jwvtongeren@gmail.com
1
Themes dealt with
 I. Concepts of SNA analysis
 II. Concepts of NTA analysis
 III. Review of NTA concepts
 IV. NTA compilation
2
I. SNA analysis
3
2010 Netherlands SNA Data
4
Policy analyses supported by SNA
accounts and concepts, SUT
 Production Account
 Value added -production approach: 𝑌𝑝𝑟𝑜𝑑,𝑗 = 𝑃𝑗 − 𝐼𝑗
 𝐺𝐷𝑃: 𝑌𝑝𝑟𝑜𝑑,𝑛𝑎𝑙 = 𝑗 𝑌𝑗
 Generation of Income Account
𝑝𝑎𝑖𝑑
𝑝𝑎𝑖𝑑
 Value added -income approach:𝑌𝑝𝑟𝑜𝑑,𝑛𝑎𝑙 = 𝐶𝑒𝑛𝑎𝑙
+ 𝑇𝑥𝑝𝑟𝑜𝑑,𝑛𝑎𝑙 + 𝑂𝑠
 Product accounts
 Supply Use balances
 𝑃𝑛𝑎𝑙 + 𝑀 = 𝐼𝑛𝑎𝑙 + 𝐶𝑛𝑎𝑙 + 𝐾𝑛𝑎𝑙 + 𝑋
 𝑃𝑛𝑎𝑙 − 𝐼𝑛𝑎𝑙 = 𝐶𝑛𝑎𝑙 + 𝐾𝑛𝑎𝑙 + (𝑋 − 𝑀)
 GDP/Value added expenditure approach
 𝑌𝑝𝑟𝑜𝑑,𝑛𝑎𝑙 = 𝐶𝑛𝑎𝑙 + 𝐾𝑛𝑎𝑙 + (𝑋 − 𝑀)
5
Policy analyses supported by SNA
accounts and concepts, IEA
 Primary distribution of income account
𝑝𝑎𝑖𝑑

𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑌𝑓𝑎𝑐𝑡𝑜𝑟,𝑗 = 𝐶𝑒𝑗𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑 + 𝑇𝑥𝑝𝑟𝑜𝑑,𝑗
+ 𝑂𝑠 + (𝑃𝑟𝑜𝑝𝑗𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑 − 𝑃𝑟𝑜𝑝𝑗

𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
(𝐶𝑒𝑛𝑎𝑙
−𝐶𝑒𝑛𝑎𝑙 ) = (𝐶𝑒𝑟𝑜𝑤 −𝐶𝑒𝑟𝑜𝑤
), same identity holds for 𝑇𝑥𝑝𝑟𝑜𝑑 & Prop
𝑝𝑎𝑖𝑑
)
𝑝𝑎𝑖𝑑
 Secondary distribution of income account
𝑝𝑎𝑖𝑑

𝑌𝑑𝑖𝑠𝑝𝑜𝑠𝑎𝑏𝑙𝑒,𝑗 = 𝑌𝑓𝑎𝑐𝑡𝑜𝑟,𝑗 + (𝑇𝑟𝑐𝑢𝑟𝑗𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑 − 𝑇𝑟𝑐𝑢𝑟𝑗

𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
(𝑇𝑟𝑐𝑢𝑟𝑛𝑎𝑙
− 𝑇𝑟𝑐𝑢𝑟𝑛𝑎𝑙 ) = (𝑇𝑟𝑐𝑢𝑟𝑟𝑜𝑤 −𝑇𝑟𝑐𝑢𝑟𝑟𝑜𝑤
)
𝑝𝑎𝑖𝑑
)
𝑝𝑎𝑖𝑑
 Use of income account

𝑆𝑎𝑣𝑗 = 𝑌𝑑𝑖𝑠𝑝𝑜𝑠𝑎𝑏𝑙𝑒,𝑗 − 𝐶𝑗

𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑆𝑎𝑣𝑅𝑂𝑊 = 𝑀 − 𝑋 + 𝐶𝐸𝑟𝑜𝑤
− 𝐶𝐸𝑟𝑜𝑤
𝑝𝑎𝑖𝑑
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
+ 𝑇𝑥𝑝𝑟𝑜𝑑,𝑟𝑜𝑤
− 𝑇𝑥𝑝𝑟𝑜𝑑,𝑟𝑜𝑤 +
𝑝𝑎𝑖𝑑
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
(𝑃𝑟𝑜𝑝𝑟𝑜𝑤
− 𝑃𝑟𝑜𝑝𝑟𝑜𝑤 ) + (𝑇𝑟𝑐𝑢𝑟𝑟𝑜𝑤
− 𝑇𝑟𝑐𝑢𝑟𝑟𝑜𝑤 )
 Capital account

𝑆𝑎𝑣𝑛𝑎𝑙 + 𝑆𝑎𝑣𝑟𝑜𝑤 = 𝐾

𝑁𝑙𝑗 = 𝑆𝑎𝑣𝑗 + 𝑇𝑟𝑐𝑎𝑝𝑗𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑 − 𝑇𝑟𝑐𝑎𝑝𝑗

𝑁𝑙𝑛𝑎𝑙 = −𝑁𝑙𝑟𝑜𝑤
𝑝𝑎𝑖𝑑
− 𝐾𝑗
 While SNA is a double bookkeeping system, please note that not all items (receipts and
6
expenditures) are used to define major SNA concepts. Only receipts and expenditures of
Ce, Prop, Trcur, and Trcap are needed to define 𝑌𝑓𝑎𝑐𝑡𝑜𝑟 ; 𝑌𝑑𝑖𝑠𝑝𝑜𝑠𝑎𝑏𝑙𝑒 ; 𝑆𝑎𝑣 & 𝑁𝑙
II. NTA analysis
7
Analysis supported by NTA
Accounts and Concepts
 SNA Saving
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
 𝑆𝑎𝑣𝑛𝑎𝑙 = 𝐶𝑒𝑛𝑎𝑙
+ 𝑇𝑥𝑝𝑟𝑜𝑑,𝑛𝑎𝑙
+ 𝑂𝑠 + 𝑃𝑟𝑜𝑝𝑛𝑎𝑙
− 𝑃𝑟𝑜𝑝𝑛𝑎𝑙
8
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
+ 𝑇𝑟𝑐𝑢𝑟𝑛𝑎𝑙
−
NTA Satellite with 2010
Netherlands data
9
Selection SNA Variables (received and paid) for Use in NTA,
NTA balances, general principles
 NTA Life cycle deficit
𝑝𝑎𝑖𝑑
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
 −[(𝐶𝑒𝑛𝑎𝑙
+ 𝑀𝑥) − 𝐶𝑛𝑎𝑙 ] = [𝑂𝑠 ′ + 𝑃𝑟𝑜𝑝𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑
− 𝑃𝑟𝑜𝑝𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑 + 𝑇𝑟𝑐𝑢𝑟𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑
− 𝑇𝑟𝑐𝑢𝑟𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑 −
𝑆𝑎𝑣𝑛𝑎𝑙 ]
 National saving (𝑆𝑎𝑣𝑛𝑎𝑙 ) using selected items of Prop & Trcur will only remain the same if
following condition holds:

𝑝𝑎𝑖𝑑
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
𝑃𝑟𝑜𝑝𝑛𝑜𝑛−𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑
− 𝑃𝑟𝑜𝑝𝑛𝑜𝑛−𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑 + 𝑇𝑟𝑐𝑢𝑟𝑛𝑜𝑛−𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑
− 𝑇𝑟𝑐𝑢𝑟𝑛𝑜𝑛−𝑠𝑒𝑙𝑒𝑐𝑡𝑒𝑑 = 0
 This conditional identity could be implemented by identifying for each expenditure a supporting
revenue and vice versa for each receipt the expenditure for which it is used
 By selecting all SNA Prop and Trcur variables, same age profiles of counterpart variables may neutralize
impact on age profile of saving
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
 Age profile 𝑇𝑥𝑐𝑢𝑟,𝐻𝐻 = 𝑇𝑥𝑐𝑢𝑟,𝐺𝑂𝑉
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
 Age profile𝑇𝑟𝑠𝑜𝑐𝑐𝑜𝑛𝑡𝑟𝑖𝑏,𝐻𝐻 = 𝑇𝑟𝑠𝑜𝑐𝑐𝑜𝑛𝑡𝑟𝑖𝑏,𝐺𝑂𝑉
𝑝𝑎𝑖𝑑
𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑
 Age profile 𝑇𝑟𝑠𝑜𝑐𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑠,𝐻𝐻
= 𝑇𝑟𝑠𝑜𝑐𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑠,𝐺𝑂𝑉
 etc. etc.
 By selecting a limited nr. of Prop and Trcur variables, under identity conditions as formulated, the
number of artificially imputed age profiles may be considerably reduced
10
(Tentative) Selection SNA Variables for Use in NTA,
practical implementation with 2010 Netherlands data
 Included: All items in HH sector
 Included: All items of GOV and NPI sector (related to financing GOV and NPI
consumption)
 However, Excluded: All counterpart of items in HH, NPI and GOV sector
 Excluded: All items of NFC and FC sectors that have counterparts in NFC and
FC sectors
 In the selection a decision needs to be taken whether revenue or expenditure
items should be selected
Table 2f Example of ideal data conditions: SNA
variables selected for incorporation in NTA,
excl. counterpart variables (actual figures)
Final consumption expenditure
Labour income
Net social contributions
Social benefits other than social transfers in kind
Taxes less subsidies
Net non-life insurance premiums Requires more detail to
identify counterpart
Non-life insurance claims
items
Miscellaneous current transfers
Operating surplus, net
Requires more detail to
identify counterpart
Property
income
11
items
Saving, net (SNA)
Non-financial
corporations
Receipts
Financial
corporations
General
government
Households
Total economy
Rest of the
world
DisburseDisburseDisburseDisburseDisburseDisburseDisburseReceipts
Receipts
Receipts
Receipts
Receipts
Receipts
ments
ments
ments
ments
ments
ments
ments
167,065
201,695
5,235
17,360
48,260
5,235
33,194
3,264
2,565
13,956
1,454
1,454
13,956
816
49,707
68,798
132,295
262,655
5,155
328,996
52,463
2,599
439
139,969
105,665
55
210,702
7,003
16,491
333,324
5,427
1,099
141,214
139,969
284
1,529
439
55
105,665
107,721
2,304
248
57,628
22
132,295
133,447
1,995
843
308
11,465
36
13,956
15,828
2,040
168
15,828
13,956
168
2,040
120,806
129,020
12,761
4,547
102,731
102,731
306,297
310,086
195,151
191,362
11,465
111,113
11,139
36
14,053
6,438
3,038
20,155
200,586
434,875
328,996
-212
308
103,229
82,576
70,891
59,207
87,225
10,181
2,565
49,188
NPISH's
11,791
-19,527
39,624
16,688
10,691
408
14
-1,361
46,513
-29,866
III. Review of NTA concepts
12
Social Transfers in kind should
not be included in NTA
Table 2a HH final Consumption and Social
Transfers in kind
Disposable income, net
Final consumption expenditure
Individual consumption expenditure
Collective consumption expenditure
Before
Saving, net, NTA
"Adjustment for
the change in
Social transfers in kind
pension
Adjusted disposable income, net
entitlements"
Actual final consumption
Actual individual consumption
Actual collective consumption
Saving, net, NTA
13
General
government
Receipts
Households
NPISH's
DisburseDisburseDisburseReceipts
Receipts
ments
ments
ments
147,538
258,126
3,794
167,065
262,655
5,155
100,392
262,655
5,155
-19,527
-4,529
-1,361
-100,392
105,547
-5,155
47,146
363,673
-1,361
66,673
368,202
66,673
368,202
66,673
-19,527
-4,529
-1,361
Mixed income should be imputed for HH
durables, no capital component of mixed
income of non-market output (?)
Households
Table 2b HH durables and mixed income
Receipts
14
Disposable income, net, SNA
Disposable income, net, NTA
Mixed income of owner-occupied dwelling services
Mixed income of services of HH durables
Mixed income of other non-market products
Mixed income for market output
Other disposable income
Final consumption expenditure, SNA
Final consumption expenditure, NTA
Consumption of owner-occupied dwelling services
Consumption of services of HH durables
Minus: consumption of HH durables
Consumption of other non-market products
Consumption of market products
Saving, net, SNA
Saving, net, NTA
Disbursements
258,126
260,126
5,000
2,000
10,000
17,890
225,236
262,655
260,655
5,000
2,000
-4,000
22,684
234,971
-4,529
-529
Production taxes and subsidies may not be
deducted
from HH final consumption

Table 2c Product taxes and subsidies
General
government
Receipts
Final consumption expenditure (in market prices)
Taxes less subsidies
Taxes on production and imports
Taxes on products
Other taxes on production
Subsidies
Subsidies on products
Other subsidies on production
15
64,303
7,060
-9196
-3549
-5647
NPISH's
DisburseDisburseDisburseReceipts
Receipts
ments
ments
ments
167,065
71,363
Households
262,655
5,155
A distinction should be made between
pension premiums and benefits of
funded and unfunded schemes
Table 2d Pension premiums and claims
Non-financial
corporations
Receipts
Social contributions and benefits in cash
Net social contributions
Actual social contributions, pensions
Actual social contributions, non-pensions
Imputed social contributions
Social benefits other than social transfers in kind
Social benefits, pensions
Social benefits, non-pensions
Saving, net, before "Adjustment for the change in
pension entitlements"
Adjustment for the change in pension entitlements
Saving, net, after "Adjustment for the change in
pension entitlements"
16
Financial
corporations
General
government
Households
NPISH's
Total economy
Rest of the
world
DisburseDisburseDisburseDisburseDisburseDisburseDisburseReceipts
Receipts
Receipts
Receipts
Receipts
Receipts
ments
ments
ments
ments
ments
ments
ments
5,235
48,260
87,225
439
47,942
83,109
5,235
318
5,235
4,116
33,194
68,798
32,876
141,214
139,969
47,264
55
47,942
47,264
82,542
83,109
82,542
10,163
10,163
105,665
107,721
32,044
32,876
832
73,621
74,845
1,472
439
10,163
55
105,665
439
55
439
55
-4,529
-1,361
32,044
5,235
318
68,798
49,707
22,069
-19,527
-15,066
49,707
139,969
73,621
15,220
7,003
-19,527
10,691
1,529
678
284
851
2,304
248
46,359
154
-1,361
284
248
-29,712
-154
46,513
-29,866
A distinction should be made between
labour income and remittances
to/from abroad
Table 2e Labour income and remittances
Non-financial
corporations
Receipts
Labour abour income
Compensation of employees, to/from ROW
Current transfers
Remittances, to/from ROW
17
Households
Rest of the
world
DisburseDisburseDisburseReceipts
Receipts
ments
ments
ments
5,427
1,099
455
1,276
5,427
1,099
1,276
455
Current transfers versus
Capital transfers, criteria
 Capital transfers only occur if an ASSET is transferred
 Concept of asset may be changed between SNA and satellite




accounts (e.g. HH durables, human capital and expenditures on
education and health, R&D)
Capital transfers may be in CASH and IN-KIND
Capital transfers IN-KIND may concern TANGIBLE, INTANGIBLE
AND FINANCIAL assets
Capital transfers if one of the parties considers the transfer as a
capital transfer (e.gh. Development aid based on current GOV
budget)
For total economy K=Snal + Srow; for sectors K=S + TrCap + Lfin
18
Current transfers versus
Capital transfers, examples
 Transfer of house between parents and children (in-kind)
 Transfer of funds between parents and children under condition that they







19
purchase a house (cash)
Reimbursement by insurance companies for damage to buildings,
equipment, infrastructure, caused by fire and adverse weather conditions
(cash)
Transfer of defense and other equipment between GOV’s (in-kind)
Funds provided by GOV’s to GOV’s for building roads and other
infrastructure (cash)
Transfers between parents and children for purposes of education
provided human capital is recognized as asset in satellite accounts
Cancellation of debt between GOV’s and between parents and children
Large donations by individuals and enterprises to NPI’s (universities,
research centers, etc.), presumably for purposes of investment
Bequests to children at death of parent (not explicitly mentioned in SNA)
IV. NTA compilation
20
NTA Compilation, NTA Manual
 Adjust micro data by age groups based on HH related surveys to
Macro (SNA) Totals
21
NTA Compilation, Conventional SNA
compilation
 Available data are incomplete; in annual compilation basic data
22
cover approximately 50% of SNA variables
 SNA structures of benchmark compilation (e.g. i-o
coefficients) are used to complete needed information to
estimate variables for which no basic data are available
 SNA identities (e.g. supply-use identities, IEA distribution of
receipts and expenditures) are used to arrive at consistent
estimates
 Including new micro HH data by ages implies that SNA
compilation would need to be revised; estimates of Macro
Totals would be changed if this information had been available
at the time of the SNA compilation
NTA Compilation, Bayesian Compilation
in SNA and Satellite Frameworks
 Formalization of Bayesian estimation approach manually used in
conventional national accounts compilation
 Bayesian estimation approach uses four inputs:
 Basic data of selected variables: age structure micro data, SNA macro
estimates
 Ratios: age structure composition of micro HH data, SNA coefficients: i-o
coefficients, tax ratios, structure of composition of HH disposable income
 SNA identities, identities between Macro-totals and sum of micro HH data
 Prior reliabilities (standard deviations) of basic data on variables and ratios

Results of Bayesian estimation:
 Posterior (adjusted) Bayesian estimates of all variables and ratios that are
consistent,
 Posterior standard deviations of all variables and ratios
23