On Extension of Aggregate National Transfer Accounts

Abstract

The article addressed some methodological issues of National Transfer Accounts (NTA) in detail and reviewed the idea of further extension (in terms of wealth accounting) on aggregate - economy-wide-level. NTA as one of the types of satellite accounts are explored. They are constructed on alternative concept relative to System of National Accounts (SNA). The article focuses in-depth on methodological features and logical approaches to compiling some indicators. It further explored the wealth content in the system of NTA, its dual nature (accrued real wealth and transfer wealth), and consequent measuring specifics. Considering international research (US practice), the author discussed established methodological approaches to compiling aggregate wealth accounts and analyzing consumption support in the form of private transfers. Based on Russian national account statistics and aggregate transfer economic account of economic lifecycle compiled for Russia, the article highlighted interconnections between the NTA and the SNA in terms of usage of resources saved in economy to accumulate both non-financial and financial assets. The author pointed out that balance sheet in SNA function as a macro benchmark for measuring total wealth of economy in NTA. Analysis of age structure indicate rapid population aging in Russia over the last decade. The State has been playing an increasing role in financing the economic lifecycle deficit. The question arises: how will this affect private savings? Does the growing social support from the state contain the growth of private savings, partially «replacing» them or not? The information presented in the article, will be useful to readers with an interest in demographic studies and socio-economics.