Transcript Supply-Use Tables in the 1993 SNA and SNA 1993 Rev 1
Measuring Non-Market Production of Households OECD National Accounts Working Party Meeting Paris December 2010 Contact: [email protected] and [email protected] Drivers • Better understanding of comparability of material well-being: catalyst from Stiglitz and many national studies….etc Household production of non-market services • SNA Production boundary includes goods produced on own-account but only dwelling services. • Long debate on extension of production boundary to include other services – i.e. those that satisfy the third party criterion. • But for a number of reasons, mainly the difficulty in determining a robust market price for these services, they have been excluded from the boundary. Boundary or not….. • ….there is merit in producing estimates, to give a better understanding of material wellbeing…. ……..Particularly in the context of international comparisons….. as the work demonstrates Methodology • Estimates the value-added of household production – Includes a labour component – And a capital component Valuing labour • Key is to estimate the cost of labour – two schools of thought – Replacement cost – Opportunity cost • Given a value, total labour costs = cost of labour*hours spent on own-account production of services OECD Time-Use Surveys • Survey of 16+ population: 1140 minutes per day broken down into: paid work, unpaid work, personal care, leisure, and other activities. • Unpaid work, broken down into: • • • • • routine housework; shopping; care; volunteering; and travel related activities. • Important to note that there may be some double counting. Valuing the price of labour Replacement cost approach: – Average hourly price of unregistered domestic servants and baby-sitters Opportunity cost approach: – Average post-tax hourly wage in total economy Valuing Capital services • Capital input (K) – PIM based - constructed from expenditures on consumer durables. • Value of capital services: = the price of capital services per unit of the net capital stock multiplied by the net capital stock K . Where the price of capital services is calculated as (r+d)*P(t) and r = real rate of return (4%) d = depreciation rate (20%) P(t) = price index of consumer durables • Again, some double counting….. Average hours worked - 2008 Contribution of labour only % of GDP, 2008 Total household production per capita converted with adjusted PPP, USD per capita, US=100 Decomposing the changes Next steps • • • • • • Correct for double counting Refine capital estimates Break down production into subcategories Consider growth Gender issues Extending the concept from material well-being to broader notion of well-being to incorporate Leisure • Extend coverage to other countries.