Transcript Methods for allocation of national activities to regions and estimating

Australian National Accounts
State Accounts
States of Australia
State Level Data Produced
Limited set of state data published in the Quarterly
National Accounts
State Final Demand
–Household and Government Consumption
–Private and Government Capital Formation
International Trade in Merchandise
Compensation of Employees
State Level Data Produced
Full set of State Accounts produced annually
All three measures: Income, Expenditure &
Production
Plus:
Income and Outlay Accounts
Capital Accounts
Agricultural Income
General Approach
National:
At the national level supply-use benchmarks are in place for t-1
These benchmarks are moved forward using movements from subannual indicator series
State:
Headline measure: GSP(A) = average of GSP(E/I) and GSP(P)
National Benchmarks – all state aggregates are set to equal national
benchmarks
Note GSP = Gross State Product
GSP(E)
• Calculated for each state by adding:
–
–
–
–
Final expenditures (government and household)
Private and public gross fixed capital formation
Exports less imports of goods and services
A balancing item
• Balancing item includes changes in inventories and
net interstate trade.
GSP(I)
• Calculated for each state by adding:
–
–
–
–
Compensation of employees
Gross operating surplus
Gross mixed income
Taxes less subsidies on production and imports
• Deflated to chain volume estimates using the
implicit price deflator from GDP(E)
GSP(P) Methodology
1. Australia GVA by industry in current prices
2. Allocate to state using factor income shares in
reference year
3. State GVA by industry in current prices
4. Apply quantity revaluation or price deflation to
create the output indicator
5. Use output indicator with price information to
create chain volume measure
GSP(P) methodology
6. State GVA by industry chain volume measures
7. Ownership of dwellings and Taxes less subsidies
on products
8. GSP(P)
GSP(P) methodology
• Almost all industries use an output indicator approach
– i.e. extrapolate reference year estimates of current price GVA
using movements in volume indicator of output
– Agriculture uses a double deflation methodology
• Most volume indicators derived by price deflation
– i.e. dividing a price index into a current price value of sales or
turnover
– Quantity revaluation used when there are individual commodities
that are reasonably homogeneous and not subject to quality
change or where price change difficult to measure
GSP(P) methodology
• Once each state’s current price and volume GVA estimates
have been derived for each industry and Ownership of
dwellings they are then benchmarked to the Australian total
for each industry
• This ensures that the sum of the states for each industry
equals the Australian total
• Each state’s benchmarked industry GVA estimates (current
price and chain volume) are then summed to produce GVA
at basic prices for each state
• To derive GSP(P) Taxes less subsidies on products needs to
be added to each state’s GVA at basic prices
Key Data Sources – GSP(P)
• Quarterly Business Indicator Survey
– All private non-financial corporations (excl agriculture) by state
– Data Items: Sales, Wages, Profits, Inventories
• Government Finance Statistics
– All general government and public corporations by state/national
• Administrative data from other government departments
– Mining, Agriculture, Finance & Insurance, Health, Education
• Price Indexes
– Consumer Price Index (by State)
– Producer Price Indexes (national except for construction)
– Labour Price Index (by state)
Industry
Methodology
Price Indexes
A - Agriculture,
Forestry and
Fishing
Combination price deflation and
quantity revaluation.
Double deflation (for Agriculture) and
quantity revaluation (for Forestry and
Fishing).
State production value data and
quantity data.
Producer Price Indexes
B - Mining
Combination price deflation and
quantity revaluation.
State production value data and
quantity data
Producer Price Indexes
C - Manufacturing
Price deflation method.
Producer Price Indexes
Current price turnover & GVA by state
by sub-division
Industry
Methodology
Price Indexes
D - Electricity, Gas, Combination price deflation and
Producer Price Indexes
Water and Waste
quantity revaluation.
Services
Electricity Gas and the Water groups
are compiled by quantity revaluation at
the subdivision level
Waste services compiled by price
deflation
E - Construction
Price deflation method.
Construction price
Current price turnover by state by sub- indexes by state
division
F - Wholesale
Trade
Price deflation method.
Producer Price Indexes
Current price turnover by state by subdivision
Industry
Methodology
Price Indexes
G - Retail Trade
Price deflation method.
Retail turnover data for all of Retail
Consumer Price index
HAccommodation
and Food Services
Price deflation method.
Turnover data by subdivision
Consumer Price index
I - Transport, Postal Combination price deflation and
and Warehousing
quantity revaluation.
Turnover data for transport and
warehousing, quantity data for postal
Producer Price index
Industry
Methodology
Price Indexes
J - Information
Price deflation method
Media and
Turnover data by subdivision
Telecommunication
Consumer Prices Index
K - Financial and
Insurance Services
Quantity revaluation method.
National data are collected from the
Australian Prudential Regulatory
Authority (APRA)
State splits using hours worked by
state, by industry group from the
Labour Force survey
Domestic Final
Demand IPD
L - Rental, Hiring
and Real Estate
Services
Price deflation method.
Producer Price Index
Current price turnover by state by subdivision
Industry
Methodology
Price Indexes
M - Professional,
Scientific and
Technical Services
Price deflation method.
Producer Price Indexes
Current price turnover by state by subdivision
N - Administrative
and Support
Services
Price deflation method.
Producer Price Indexes
Current price turnover by state by subdivision
O - Public
Administration and
Safety
Combination price deflation and
quantity revaluation methods.
Indicators are average hours worked
by Government Administration
employees
-
Industry
Methodology
Price Indexes
P - Education and
Training
Quantity revaluation method.
Student numbers for Preschool,
Primary and Secondary, University,
Vocational Education & Training
Public sector expenditure on education
by state is sourced from the
Government Finance data
Q - Health Care
and Social
Assistance
Combination price deflation and
quantity revaluation methods.
Private health turnover
Public health number of treatments
Consumer Price Index
R - Arts and
Price deflation method.
Consumer Price Index
Recreation Services Current price turnover by state by subdivision
Industry
Methodology
S - Other Services
Price deflation method.
Consumer Price
Current price turnover by state by sub- Indexes
division
Ownership of
dwellings
Quantity revaluation method
National current price split into states
using the state shares of TFI
Current price state estimates are
quantity re-valued using the CVM for
HFCE - Gross Dwelling Rents (actual
plus imputed rent from owners of
dwellings)
Taxes less subsidies Quantity revaluation method
on products
Government Finance data are used to
determine state shares
Price Indexes
Consumer Price Index
-
Key Issues – GSP(P)
• A number of price indexes are representative of national,
rather than state, price movements
• Single deflation methodology used – output used as an
indicator for value added, data on intermediate
consumption not available on timely basis
• We do not produce state supply-use or input-output tables product mixes within industries may vary on a state basis,
this is not picked up
• Allocation of activity spread across regions i.e. Mining
operation vs Mining company headquarters
Further information
• National Accounts: Concepts Sources and Methods
– Catalogue number 5216.0
• Information Paper: Gross State Product using the
Production Approach GSP(P)
– Cat. No. 5220.0.55.002
• Australian National Accounts: State Accounts
– Cat. No. 5220.0
Questions?