National Accounts in Practice - CIRCABC

National Accounts in practice




12-21 November 2012, The Hague (Netherlands)



Exercises


Contents



Supply and Use Tables 5

Basic terminology 6
A simple set of supply and use tables 7
Production and Value added 9
Production boundary 9
Determining output value 10
Final Expenditure 15
Household consumption 16
Balancing supply and use: Tobacco 20
Constant prices 22

Quarterly National Accounts 24

Prices in the Quarterly National Accounts 25

Sector Accounts 26

Introduction in Sector Accounts 27
Exercise 1: The kitchen table account 27
Exercise 2: Budget and transaction identities 28
Exercise 3: Sectorization 29
Exercise 4: The basic set of T-accounts 30
Exercise 5: Flows and stocks 33
Exercise 6: Financial accounts and balance sheets - the structure of the
system 34
Rest of the world (S2) 35
Exercise 1: On residency 35
Exercise 2: Foreign Direct Investment 36
Non-financial corporations (S.11) 37
Financial Corporations (S12) 40
Exercise 1: financial corporations 40
Exercise 2: FISIM 43
Households (S.14) 44
Non Profit Institutions serving Households (S.15) 47
Government (S.13) 48
Non Profit Institutions serving Households (S.15) 51
Balancing the system using matrices 52

Balancing the System 56

Interactions and relations between the three systems 57

Regional Accounts 62





Supply and Use Tables







Exercises





Basic terminology





|Commodities |Unit A |Unit B |
| |Purchase |Sale |Purchase |Sale |
|Textile | |50 |30 | |
|Board | |100 |70 | |
|Tables | | | |200 |
|Chairs | | | |150 |
|Import Cotton |10 | | | |
|Import Wood |20 | | | |
|Compensation of |80 | |180 | |
|employees | | | | |

|Consumption of fixed |10 | 30 |
|capital | | |






|Calculate: |Gross Output |
| |Intermediate consumption |
| |Gross value added |
| |Net operating surplus |
| |GDP for the total economy |








A simple set of supply and use tables


Explanation

The statistical office of your country has compiled a number of statistics.


The department for National Accounts is responsible for compiling a
complete picture of the economy. For this purpose they use a system of
Supply and Use matrices.

The basic statistical data are given on the next page and stem from:
* Production surveys on
> Agriculture and Manufacture
> Trade and Repair
> Government
> Service industry
* Household Budget survey
* A survey on Foreign trade
* Statistics on capital formation

You may assume that the available information is complete and perfect. This
will never happen in reality. It is a simplification just for this
exercise. A further simplification is that trade and transport margins, and
taxes and subsidies do not exist.

1. You are asked to fill in the scheme of the supply and use tables. In the
supply and use matrix only the rows and columns of the industries and
commodities (or products) are given.

You should find yourself the right entries for the final consumption
categories, the wages, the operating surplus, and the imports. If this is
done correctly, all basic identities are fulfilled. You can check this by
calculating the row and column totals.

Data

DATA ON INDUSTRIES

| |Agricultur| |Trade | |Government| |Services |
| |e, | |repair | | | | |
| |manufactur| | | | | | |
| |e | | | | | | |
| |Outpu|Inp| |
| |t |ut | |
|1. Handing out passports by local | | | |
|government | | | |
| | | | |
|2. The production and sales of | | | |
|marijuana | | | |
| | | | |
|3. Polluting the environment | | | |
| | | | |
|4. Gathering of raspberries in the | | | |
|woods | | | |
| | | | |
|5. The natural growth of herrings in | | | |
|the North Sea | | | |
| | | | |
|6. Eating at home | | | |
| | | | |
|7. Painting your own house on the | | | |
|outside | | | |
| | | | |
|8. Painting your own house on the | | | |
|inside | | | |
| | | | |
|9. Preparing a meal for your own | | | |
|family | | | |
| | | | |
|10. The growth of trout at a | | | |
|trout-farm | | | |





Determining output value


Exercise 1

Please compile the output value in the following cases:


Unit A: "Interior design" furniture manufacturing

Interior design is a small furniture manufacturing company. They design,
construct and sell furniture. The following information is available for
2007:

Sales:

-
Chairs..................................................................
......................................................75 mln E
-
Tables..................................................................
......................................................25 mln E
- Couches
.......................................................................
............................................65 mln E
-
Bookcases...............................................................
..................................................35 mln E

Other information:

Construction of a parking lot by own
staff....................................................estimated costs 25
mln E
The office is painted by own staff:
...............................................................estimated
costs 5 mln E
Change of stock of finished
furniture...................................................................
...................10 mln E


Costs:

- Intermediate
consumption............................................................
..........................135 mln E
-
Wages...................................................................
...................................................60 mln E
- Other taxes on
production.............................................................
.............................5 mln E
- Consumption of fixed
capital................................................................
......................5 mln E


Unit B: "Fly away" airlines

Fly away airlines is a small aviation company. It maintains flight on
several European and North American cities. The following information is
available for 2007.

Sales:

- Tickets
(sold).................................................................
......................................100 mln E.
- On board sales of tax free
items..................................................................
............2 mln E


Other information:

- Fly away personnel is allowed to make two European flights for free
each year.
The market value of the tickets provided to the personnel amounted
.....................6 mln E
- Allowances for meals etc. to flight-personnel during their stay
abroad....................4 mln E
- Overhaul of own
aeroplanes.............................................................
........................8 mln E
- Regular maintenance of own
aeroplanes.............................................................
..10 mln E
- Sale of two
aeroplanes.............................................................
..............................50 mln E

Costs:
- Intermediate
consumption............................................................
............................35 mln E
-
Wages...................................................................
...................................................25 mln E
- Consumption of fixed
capital................................................................
......................8 mln E




Unit C: Rugby club "The warriors"

Rugby club the warriors plays in the amateur league. Its main income source
is from subscription fees from the members. Besides that there also some
income from sales of food and drinks in the clubhouse, from shirt
advertising and from sponsoring.