Selected Issues with Implementation
of 2008 SNA (continued)
Training Workshop on System of National Accounts
for ECO Member Countries
14-17 October 2012, Tehran, Islamic Republic of Iran
United Nations Statistics Division
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Outline of Presentation
 Mineral exploration and evaluation
 Measurement of FISIM
 Exhaustiveness of national accounts (non-observed
economy and informal sector)
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Mineral exploration and evaluation
 Value of expenditures on exploration for petroleum and
natural gas and for non-petroleum deposits and
subsequent evaluation of the discoveries made
 Includes
• Prelicence costs
• Licence and acquisition costs
• Appraisal costs
• Costs of actual test drilling and boring
• Costs of aerial and other surveys, transportation
costs, etc to carry out such tests
• Re-evaluation costs
 Gross fixed capital formation whether successful or not
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Mineral exploration and evaluation
Valuation
 Own account
• Sum of costs including return to fixed capital (for
market producers)
 Contracted out
• Explicit fee
Data sources
 Survey of mining enterprises
• Census is preferable due to volatility
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FISIM - Concept
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Indirect measure of the value of financial intermediation
services provided but for which financial institutions do not
charge explicitly
Needs to be imputed because no explicit fees are charged
Split actual interest transactions into
• SNA interest
• FISIM
Applies to loans and deposits
• Financial institutions
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FISIM - Concept
FISIM  FISIM L  FISIM D   rL  rr  YL   rr  rD  YD
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FISIML = FISIM on loans
FISIMD = FISIM on deposits
rL = lending rate
rD = deposit rate
rr = reference rate
YL = stock of loans
YD = stock of deposits
rL YL = actual bank interest receivable on loans
rD YD = actual bank interest payable on deposits
rrYL (rrYD) = SNA interest on loans (deposits)
• Record in allocation of primary income account
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FISIM - Concept
Reference rate
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Between interest rates on loans and deposits
No service element
Reflects risk and maturity structure of deposits and loans
One reference rate per currency
One method
• Simple or weighted average of the ratio of interest
payable on deposits to the stock of deposits and ratio
of interest receivable on loans to the stock of loans
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FISIM – Estimation and Allocation
Bottom-up method
 If complete data on average stocks of loans and deposits
and interest by sector from monetary authorities are
available
 Calculate FISIM on loans to each sector
 Calculate FISIM on deposits to each sector
 Sum up to get total FISIM
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FISIM – Estimation and Allocation
Top-down method
 If complete data on average stocks of loans and deposits
and interest by sector from monetary authorities are not
available
 Calculate total FISIM on loans
 Calculate total FISIM on deposits
 Distribute total FISIM on loans (deposits) to each sector
in proportion to average stocks of loans and deposits
(from other sources)
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FISIM – Estimation and Allocation
Households
 FISIM on loans to households sector
Intermediate
• Owners of dwellings (dwelling loans)
consumption
• Owners of unincorporated enterprises
• Other loans (final consumption expenditure)
 FISIM on deposits to households sector
• Owners of unincorporated enterprises (intermediate
consumption)
• Deposits as final consumers (final consumption expenditure)
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FISIM – Estimation and Allocation
Households
 Complete breakdown of data not always available
 Allocate FISIM on loans to
• Owners of dwellings (dwelling loans)
• Owners of unincorporated enterprises
• Other loans (final consumption expenditure)
Using indicators such as breakdown of data on loans
from other sources
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FISIM - Estimation
Households
 Allocate FISIM on deposits to
• Owners of unincorporated enterprises (intermediate
consumption)
• Households as final consumers (final consumption
expenditure)
 Using indicators from other sources such as
• Ratio of stocks of deposits to VA for smallest size
corporations
• Ratio of stocks of deposits to turnover for smallest size
corporations
 Other solutions?
• Equal split?
• Professional judgement
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Exhaustiveness of National Accounts
 Need to ensure whole of economic activity within the SNA
production boundary is measured comprehensively
 Exhaustiveness of coverage of national accounts
 Ensures availability of good quality national accounts for
economic policy making and research
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Exhaustiveness of National Accounts
Non-observed economy (NOE)
 Extent of economic activity missing from statistical data
collections and from administrative sources
 5 problem areas that are most likely to be nonobserved are:
• Underground
• Illegal
• Informal sector
• Household production for own final use
• Deficiencies of basic data collection programme
(statistical underground)
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Exhaustiveness of National Accounts
Methods to measure NOE
 Direct surveys
• Expenditure and income surveys
 Indirect statistical methods
• Supply based approaches, including labour input
method
• Demand based approaches
• Income based approaches
• Commodity flow approach
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Exhaustiveness of National Accounts
Informal sector (ILO concept)
 Consists of units engaged in production with the purpose of
generating income and employment for the person
concerned
 Characterised by a low level of organisation, informal
employment relations (e.g. oral agreements), with little or
no division between labour and capital as factors of
production, on a small scale
 Production units have features of household enterprises
 At least some of production should be sold or bartered
 Coverage restricted to employment size below certain level
or units which are not registered
 Confined to non-agricultural activities
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Exhaustiveness of National Accounts
Informal sector (2008 SNA operational guidelines)
 ILO concept always regards informal sector as a subset of household
unincorporated enterprises operating within the production boundary of
the SNA
 Excludes the following from SNA households sector
• Institutional households such as prisons, and retirement homes
• Households with no production activity
• Produce exclusively for own final use
• Households whose only activity is the production of services from
owner-occupied dwellings or the production of services by
employing domestic staff or both
• Agricultural production
 Consider national practices in establishing the households sector to
see if any adjustment to the first step is necessary
• Exclude NPISHs if included in households sector
 Provides breakdown by type of activity so that common exclusions
according to type of activity can be made
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Exhaustiveness of National Accounts
Approaches to measuring activities of informal sector
 Household surveys
 Establishment surveys
 Mixed household-enterprise surveys
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Questions?
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Thank You
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