The 12th OECD-NBS Workshop on National Accounts Real Value
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Transcript The 12th OECD-NBS Workshop on National Accounts Real Value
The 12th OECD-NBS Workshop on
National Accounts
Real Value-added Estimation of Real Estate (LIU Nan, NBS)
Comments on paper by Roger Jullion, Statistics Canada
October 2008
Real value-added estimation of Real Estate
2
Measuring housing services in national accounts
NBS estimates of nominal output
NBS estimates of real output
Methods used at Statistics Canada
Suggestions for further development
Statistics Canada • Statistique Canada
2016-04-11
Measuring housing services in national
accounts
3
Rented vs owner-occupied housing
Production-based and expenditure-based GDP
Rental equivalence approach
User cost approach
Statistics Canada • Statistique Canada
2016-04-11
Owner-occupied housing services
NBS adopted user cost approach
• Data problems with rental equivalence approach
Nominal output equal to:
• Repair and maintenance costs
• Plus: management fees
• Plus: depreciation
4
Statistics Canada • Statistique Canada
2016-04-11
Owner-occupied housing services
Suggested improvements to nominal series
• Include property taxes (could be available from
municipal records)
• Include interest on housing loans (could be available
from bank reports)
• Include housing insurance
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Statistics Canada • Statistique Canada
2016-04-11
Constant price estimates of owner-occupied
housing services
Nominal owner occupied rents deflated by NBS
using the renting price index
• Problems of consistency between nominal series and
the deflator
• Coverage of renting price index limited to large cities
• Earlier methodological notes suggested that the
construction and installation price index was used as
a deflator for repair and maintenance and
management fees
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Statistics Canada • Statistique Canada
2016-04-11
Constant price estimates of owner-occupied
housing services
Alternative approach proposed by NBS
• Uses a volume indicator based on the growth rate of
urban and rural occupied housing area
• The housing area projector would exclude
improvements made to the dwellings that do not
increase the housing area but improve the quality of
the dwelling
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Statistics Canada • Statistique Canada
2016-04-11
Method used by Statistics Canada
Rental equivalence approach used for owner-occupied
dwellings (estimates done by province)
Adjustments are made for quality changes e.g. size of
the dwellings (based on Census information)
Volume estimates for housing services for tenant
occupied and owner-occupied housing are based on the
growth of the constant price housing stock
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Statistics Canada • Statistique Canada
2016-04-11
Suggestions for improvement
If the user cost approach is continued, the nominal
estimates should be increased to include property taxes,
interest on housing loans and home insurance
Consideration could be given to using the constant price
housing stock derived from the PIM model as a volume
indicator for housing services for both rented dwellings
and owner-occupied dwellings
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Statistics Canada • Statistique Canada
2016-04-11