Download Lesson 8 - Moodlerooms

Introduction to the System of
National Accounts (SNA)
Lesson 8
Supply and Use Tables and
Commodity Flow
1
Copyright 2010, The World Bank Group. All Rights Reserved.
Supply and Use Tables
• In Lesson 1 we looked at a simplified Supply and Use
Table (SUT).
• SUTs are a first step in producing an Input-Output
table.
• SUTs are a means of ensuring that GDP(P) and
GDP(E) are equal.
• «Commodity flow» is an SUT confined to a single
good or service.
2
Copyright 2010, The World Bank Group. All Rights Reserved.
Supply of goods and services
Domestic
production
(Basic Prices)
Imports
(C.i.f.)
Transport
Costs
Trade
Margins
Product
Taxes (minus
subsidies)
Total supply
at
purchasers
prices
Food
Clothing
Shoes
Furniture
Cement
Coal
Radios
I-phone
.
.
.
3
Copyright 2010, The World Bank Group. All Rights Reserved.
Exports
Capital
formation
Household
consumption
NPISH
consumption
Government
consumption
Intermediate
consumption
Use of goods and services
Total uses
at
purchaser
s prices
.
.
4
Copyright 2010, The World Bank Group. All Rights Reserved.
Worked examples for four
commodities
• Poultry meat
– Mainly for household consumption but some is also
intermediate consumption
• Tobacco
– In this example it is only for final consumption
• Motor cars
– Vehicles are both capital and consumption goods
• Accountancy services
– Intermediate and final consumption
5
Copyright 2010, The World Bank Group. All Rights Reserved.
Poultry
Domestic production (value at farm gate)
6,500
Imports (c.i.f.)
0
Taxes on poultry
0
Subsidies on poultry
0
Trade margins (on household consumption)
130
Trade margins (on intermediate consumption)
10
Transport charges
65
Intermediate consumption (for pet food)
1,000
Final consumption expenditure by households
Unknown
Gross fixed capital formation
0
Change in inventories
0
Exports
45
6
Copyright 2010, The World Bank Group. All Rights Reserved.
Commodity Flow calculation for Poultry
Supply
Domestic production (value at farm gate)
6,500
plus Imports (c.i.f.)
0
plus Taxes on poultry
0
less Subsidies on poultry
0
plus Trade margins (on household consumption)
130
plus Trade margins (other)
10
plus Transport charges
65
equals Total supply
6,705
Uses
Intermediate consumption (for pet food)
plus Household final consumption expenditure
1,000
Unknown
plus Government final consumption expenditure
0
plus Gross fixed capital formation
0
plus Change in inventories
0
plus Exports
equals Total known uses
45
1,045
Residual calculation
Total supply
6,705
less Total known uses
1,045
equals Final consumption expenditure by households
5,660
Copyright 2010, The World Bank Group. All Rights Reserved.
7
Tobacco
Domestic production (basic prices)
8,200
Imports (c.i.f.)
1,200
Taxes on tobacco
Subsidies on tobacco
Trade margins (on household consumption)
Transport charges
Intermediate consumption
Final consumption expenditure by households
Gross fixed capital formation
940
0
1,340
300
0
8,000
0
Change in inventories
–10
Exports
350
8
Copyright 2010, The World Bank Group. All Rights Reserved.
Tobacco
Supply
Domestic production (basic prices)
8,200
plus Imports (c.i.f.)
1,200
plus Taxes on tobacco
less Subsidies on tobacco
plus Trade margins (on household consumption)
plus Transport charges
equals Total supply
940
0
1,340
300
11,980
Uses
Intermediate consumption
plus Household final consumption expenditure
0
8,000
plus Government final consumption expenditure
0
plus Gross fixed capital formation
0
plus Change in inventories
–10
plus Exports
350
equals Total uses
8,340
Discrepancy
Total supply
11,980
less Total uses
8,340
equals Discrepancy
3,640
Copyright 2010, The World Bank Group. All Rights Reserved.
9
Making Supply and Use Equal
•
Appraise each estimate in turn.
– How reliable is the source
– How does this year’s estimate compare with last
year’s?
• Identify the weakest link
– Survey statisticians can help here.
• Decide whether to accept the resdidual estimate or
the direct estimate.
10
Copyright 2010, The World Bank Group. All Rights Reserved.
Motor cars
Domestic production (basic prices)
Imports (c.i.f.)
0
955
Customs duties on cars
30
Taxes on motor cars
45
Trade margins (total)
80
Transport charges
60
Intermediate consumption
Final consumption expenditure by households
0
Unknown
Gross fixed capital formation by government
20
Gross fixed capital formation by businesses
135
Change in inventories
0
Exports
0
11
Copyright 2010, The World Bank Group. All Rights Reserved.
Motor cars
Supply
Domestic production (basic prices)
plus Imports (c.i.f.)
plus Taxes on motor cars
less Subsidies on motor cars
0
955
75
0
plus Trade margins (total)
80
plus Transport charges
60
equals Total supply (purchasers’ prices)
1,170
Uses
Intermediate consumption
plus Household final consumption expenditure
plus Government final consumption expenditure
plus Gross fixed capital formation (government plus business)
0
Unknown
0
155
plus Change in inventories
0
plus Exports
0
equals Total known uses
155
Residual calculation
Total supply
less Total known uses
equals Final consumption expenditure by households
Copyright 2010, The World Bank Group. All Rights Reserved.
1,170
155
1,015
12
Second-hand Sales
• Sales between households
– The value of the vehicles cancells out
– But dealers margins increase household
consumption expenditure
• Sales from government and enterprises to
households
– Negatve capital formation
– Positive household consumption
• Exports
– Negatve capital formation or household
consumption
Copyright 2010, The World Bank Group. All Rights Reserved.
13
Accounting services
Domestic production (basic prices)
200
Imports (c.i.f.)
0
Customs duties
0
Value added tax on sales to households
3
Trade margins (total)
0
Transport charges
Total supply at purchasers’prices
0
203
Intermediate consumption
170
Final consumption expenditure by households
23
Capital formation
0
Change in inventories
0
Exports
Copyright 2010, The World Bank Group. All Rights Reserved.
10
14
What have we learned?
• Supply and Use tables have 2 uses:
– First step towards Input/Otput tables
– Estimating consistent GDP
• Commodity flow is a partial application
of the SUT to:
– Estimate a missing value
– Consistency check
• Applying commodity flow tables is
challenging:
– Assumptions are always needed.
– Use all the information you can find.
15
Copyright 2010, The World Bank Group. All Rights Reserved.