System Of National Accounts Research Articles

The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013

Over the 1948–2013 period, many factors significantly impacted on human capital, which in turn affected economic growth in the United States. This chapter analyzes these factors within a complete national income accounting system, which integrates Jorgenson-Fraumeni human capital into the accounts. By including human capital, a fresh perspective on economic growth across time and within specific subperiods is revealed, notably regarding the 1995–2000 and 2007–2009 periods. During the first period, the reduction in human capital investment significantly reduced apparent economic growth. In the second period, the increase in human capital investment tempered the negative impact of the Great Recession. Over the 1948–2013 period, first the post-World War baby boom, and then, the substantial increase in education led to higher economic growth than otherwise measured. As the pace of increase in education slowed and the workforce aged toward the end of the period, human capital induced growth was reduced.

The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013

Over the 1948–2013 period, many factors significantly impacted on human capital, which in turn affected economic growth in the United States. This chapter analyzes these factors within a complete national income accounting system which integrates Jorgenson-Fraumeni human capital into the accounts. By including human capital, a fresh perspective on economic growth across time and within specific subperiods is revealed, notably regarding the 1995–2000 and 2007–2009 periods. During the 1995–2000 period, the reduction in human capital investment significantly reduced apparent economic growth. In the 2007–2009 period, the increase in human capital investment tempered the negative impact of the Great Recession. Over the longer time period, first the post-World War baby boom and then the substantial increase in education led to higher economic growth than otherwise expected. As the pace of increase in education slowed and the workforce aged toward the end of the period, human capital induced growth was reduced.

Calculation of financial intermediation services indirectly measured (FISIM) for Islamic banking activity in Malaysia1

The Financial intermediation services indirectly measured (FISIM) is a concept used in national accounts to value the activity of banks as intermediaries between depositors and borrowers and widely used in conventional banking. Unlike conventional banking, Islamic banking declared their loans as financing in financial position statement. While interest expense and interest received declared as “profit distributed to depositors” and “income derived from investment”. The terms were compliant by the shariah law in Malaysia and this paper show on how the calculation of FISIM for Islamic banking in the context of the 2008 System of National Accounts. The calculation process is similar to conventional banks methodology, but the difference was only terms of financing instead of loans that have been used in Islamic Banking.

Problems of Developing Municipalities’ Financial Balances on the Example of the “General Government” Sector

The article deals with the problems of developing financial balances at the municipal level, based on the principles of constructing the System of National Accounts. The problems of methodological nature and information content of financial balances are described, possible ways of their solution are proposed. The author’s methodology for determining the share of the “General Government” sector in the economy of municipalities has been developed. In the absence of data on value-added areas, proposed to use wage data by types of economic activity. On this basis, we calculated the contribution of local and state budgets in the expenditures of the “General Government” sector in the municipalities of the Khanty-Mansiysk Autonomous Okrug - Yugra. On average, financing of wages in this sector is provided by federal and regional authorities at 60.86% in the region. The smallest value among municipalities is in the city of Pokachi (9.88%), the greatest dependence on the financing of the region and the federation is in the city of Khanty-Mansiysk (85.5%), Surgut (over 65%) and Yugorsk (slightly less than 64%).

Compilation of regional financial balances for the ‘General Governance’ sector in the Ural Federal District

Relevance. In recent years, the significance of financial flows in the public sector in territorial development in Russia has been growing. To be able to analyze all public sector revenues and expenditures at the regional level, it is necessary to develop financial balances that take into account all flows of financial resources. Research objective. The purpose of this study is to create financial balances of the "General Governance" sector by using the example of six regions in the Ural Federal District. Data and methods. The study is based on the theoretical framework of the System of National Accounts. The author proposes a methodological approach to the consolidation of official statistical reports from open sources in accordance with the classification of government revenues and expenditures in national accounting. Results. The proposed methodology for calculating the income and expenditures of all budgets in the region, including the volume of direct federal expenditures, is based on comparing the data on the sources of added value formation. A database on income and expenditures of the regions of the Ural Federal District for the period 2014-2018 was made and a matrix of financial balances of the "General Governance" sector by regions for 2017 was built. To this end, the structure and amount of public institutions financing costs were specified and donor and recipient regions of the Ural Federal District were identified. Conclusions. Financial resources of the public sector affect the economy of the regions of the Ural Federal District in several ways. The regions specializing on oil and gas production are net donors to the sector, the rest of the regions cannot provide for themselves and are more dependent on federal funds. The sector "General Governance" generates more than 10% of GRP of Chelyabinsk and Sverdlovsk regions and more than 20% of Kurgan region. The results can be used for planning and forecasting of socio-economic development of certain areas.

Agro-Industrial Complex of the Russian Arctic: Research Contribution to the Value Added Areas

The article deals with the problems of assessing the contribution of the agro-industrial complex to the economy of the Arctic territories. An approach to the definition of the notion “agro-industrial complex” from the point of view of the System of National Accounts is highlighted. The author proposes a method of calculating the value added of economic activities at the municipal level. On this basis, formed a database of wages of all municipalities of the Arctic region of Russia. The author calculated the contribution of agro-industrial complex in gross value added Arctic municipalities in the context of the Russian Federation. The results obtained allow us to highlight the importance of the agro-industrial complex in the economy of municipalities in the Arctic zone of Russia. The agro-industrial complex is of the greatest importance in the economy of the Anabar national region of the Republic of Yakutia and the city of Murmansk. The calculations showed that the added value of the agro-industrial complex for the whole Arctic territories of Russia is 55,821.78 million rubles, and its contribution to the total value added is 1.56%.

Майбутнє корпоративної звітності: історія, перспективи та проблеми

The purpose of the article is to analyze proposals for prospects for the development of corporate reporting in the future, as well as to identify areas and obstacles to such development. Historical aspects of forming a new model of corporate reporting have been analyzed. Priority of external factors in the improvement of corporate reporting at the initial stage of analysis of its development has been identified. The reasons for the discrepancy between the current model of corporate reporting and the specifics of the functioning of corporations have been identified. The necessity of continuous improvement of corporate reporting in accordance with the changing information needs of stakeholders has been grounded. The dependence of corporate reporting on changes in the external accounting environment (internal and external stakeholders, new technologies of work with accounting information, peculiarities of corporate activities) has been disclosed. The proposals of research structures and professional accounting organizations for improvement of corporate reporting during 2015-2019 have been analyzed. Priority environmental factors that will influence the development of corporate reporting in the future (requirements of external stakeholders, technological innovations) have been identified. Two main models have been formed that characterize the development of corporate reporting in the future. Priority of development of corporate reporting in the future has been established on the basis of selected ways (inclusion of new objects in its composition, improvement of the current accounting methodology, active introduction of technological innovations into the accounting process, improvement of the institutional structure of national accounting systems, improvement of the accounting organization process).Obstacles to the progressive development of corporate reporting in the future have been determined (necessity of transformation of the theory of double-entry accounting, necessity of economy of expenses for the reporting process, insufficiency of the solution of agency problem in corporations, falling into institutional trap in the process of development of the system of reporting regulation, low level of theorizing of corporate reporting process transformation).

An Estimate of the Economic Impacts of Tourism in Developing Countries; A Case Study of Tunisia by Applying Tourism Satellite Account

The Tourism Satellite Account(TSA)is now widely used to examine the economic impact of tourism. The purpose of“TSA”is to analyze specific economic activities more completely than is possible within the System of National Accounts(SNA). The economic analysis of tourism requires the identification of the resources used by tourist on their trips, the consumption of goods and services that they acquire, and therefore the identification of the economic units that provide those goods and services. Both the demand and the supply perspectives are of particular importance. The paper, based on questionnaire survey conducted by the author at Tunisia airport, outlines the procedure for estimating Tunisian TSA, find out the value of direct and indirect tourism value added and show the size of tourism in Tunisian economy and the various industries related to tourism.

Bioeconomic modelling – An application of environmentally adjusted economic accounts and the computable general equilibrium model

Building on the current international discourse and United Nation's System of Environmental-Economic Accounting (SEEA) this study provides further empirical evidences on how failure to include natural capital resources in national accounting leads to erroneous calculation of macroeconomic estimates. The SEEA methodological framework for integrating natural capital into the System of National Accounts amplifies analytical power of computable general equilibrium (CGE) models and allows to investigate relationship between the economy and the environment. This paper integrates values of natural capital into Supply and Use Tables (SUTs) to illustrate depletion of forest due to natural disaster. It further applies CGE model to demonstrate economy-wide effects of a real event in which hurricane felled almost 80 thousands hectares of trees in Polish forests in 2017. The model results corresponds with the statistical data published after the mentioned event. Furthermore they align with findings of previous studies, which applied different methodical approach and show that without natural capital accounting the macroeconomic estimates provide misleading information about economic performance.

Vietnam

At the request of the General Statistics Office (GSO) of Vietnam, a technical assistance (TA) mission was conducted at the headquarters of the statistical office from April 8–12, 2019. The purpose of the mission was to evaluate the revised estimates of GDP, to ensure that the compilation process is aligned with the System of National Accounts 2008 (2008 SNA) and that the methodology employed for estimation is consistent and coherent.

The System of Macroeconomic Accounts Statistics by the Modelling Indicators for the Financial Corporations Sector

The article deals with the development of models for analysing and forecasting the indicators of the Financial Corporation sector by the System of National Accounts (SNA), and with the possibilities of including it in forecasts based on the integrated SNA model. A listing of endogenous indicators of sector accounts for their modelling and of exogenous indicators, which are factors of influence on the prognostic indicator, has been substantiated. The modelling tool suggested provides a basis for developing an integrated SNA model. It embraces all sector accounts and their links, and is suitable from the viewpoint of available statistical data. It also allows formalising and assessing the macroeconomic policy to develop possible future options (conditions) of sector development.

On Extension of Aggregate National Transfer Accounts

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.

Valuation of Biological Assets at Fair Value

Today the globalisation of the world market leads to the necessity of constructive interaction in the international market and forming common standards of accounting. Transnational corporations as a phenomenon of worldwide integration are businesses with units in different countries of the world. Special issues of information support of management in agricultural organisations have become very important in the conditions of the market economy. Clear and transparent accounting in such enterprises requires the existence of common international standards. Such standards could become International Financial Reporting Standards (IFRS). They are designed to provide an understanding of financial processes in different countries for the interaction between investors and potential investment projects located in different national accounting systems. The standard “Agriculture” has great importance for the Russian Federation. Agriculture is one of the leading sectors of our country, supplying products for both domestic and foreign market. Accordingly, the adoption of this standard and the implementation of its provisions is an important and urgent issue of today’s economic reality. Introduction of this standard leads to the formation of fundamentally new methodological bases of the accounting of agricultural activities based on the market value of assets because paragraphs 12–13 of this Standard states that during the initial and subsequent valuation of biological assets will be measured at their fair value fewer costs to selling. Thus, the need to allocate biological assets in the separate account-economic category, their reflection in the accounting at fair value by the provisions of IAS 41 has determined the relevance of the topic, goal, objectives and logic of the article.

Продвинулся ли мир на пути к всеобщей социальной защите: к столетию МОТ

The article discusses the new ILO initiatives undertaken in the 21st century in the context of globalization and the presence of many acute problems in social protection and social security of ILO member countries. The author analyzes a number of key ILO reports of the 2010s. The author shows that the main problem of the ILO and its future is insufficient ratification of conventions, and this problem has no noticeable solution. Particular attention is paid to unpaid domestic and care work and the task of its inclusion in the System of National Accounts. The author believes that the ILO status allows this organization to raise the issue of solving the problem of accounting for domestic work and labour for the disabled people caring in GDP calculations in order to more accurately assess it. The article emphasizes the importance of renew ILO periodic reports as a continuation of the World Social Security Report 2010/11. The author concludes that it is necessary to develop the Russian Future of Work Strategy and to consider it in the implementation of national projects implemented by the Russian government.

REGIONAL GROSS DOMESTIC PRODUCT OF GEORGIA. METHODOLOGICAL CHANGES


 
 
 The paper is devoted to the methodological changes in the calculation of regional Gross Domestic Product (GDP), mainly due to the introduction of the 2008 version of the System of National Accounts in Georgia. Other changes are related to the transition to a new classification system of economic activity (NACE rev2). Because of this, the regional structure of GDP has changed significantly.Regional GDP on a per capita basis, in 2018 Tbilisi ranks first (6122,5 USD). Then it will be followed by Adjara (5514.3 USD). Their rate is significantly higher than the national rate (4722.0 USD).The priority directions for calculating regional GDP in Georgia are as follows: •Receiving data directly from local units (local KAUs) by improving information sources;•More detailing of regionalization. In particular, at the municipal level; •Calculate regional GDP at constant prices.
 
 

INTERNATIONAL EXPERIENCE OF ENVIRONMENTAL FACTORS ACCOUNTING IN ADJUSTING MACROECONOMIC INDICATORS

New requirements to the system of macroeconomic indicators, corresponding to the concept of socio-economic development sustainability, have been determined. The factors, associated with the features of gross domestic product constructing methodology, determining the trends observed in international statistics for adjusting or replacing the gross domestic product with other analytical indicators, have been identified. Actual problems of environmental factors accounting in the construction of adjusted gross domestic product values have been considered. The basic schemes for constructing gross domestic product modified versions used in modern international statistics have been presented. Approaches to the reflection of environmental components in the System of National Accounts have been systematized. International experience of environmental factors accounting in adjusting macroeconomic indicators has been codified. Recommendations on the use of advanced international experience in accounting for environmental factors in Russian statistics have been presented.

Целевые установки и их влияние на трансформацию бухгалтерского учета

Th e article is devoted to the analysis of the current state of accounting knowledge and, as a result, accounting practices that are permanently transformed into separate accounting areas aimed at satisfying the information interests of certain groups of users of fi nancial, tax, social and other reporting. Th e author focuses on the impossibility of achieving economic effi ciency of organizations, in the setting of distorted or false targets of the national accounting system.

GROSS DOMESTIC PRODUCT: PROBLEMS OF CONSTRUCTION AND USE IN ANALYSIS OF SOCIO-ECONOMIC PROCESSES

The problematic aspects of the methodology for constructing gross domestic product indicator in macroeconomic statistics have been considered. Features of accounting for gross domestic product individual components in the System of National Accounts have been identified. Based on the analysis of international organizations recommendations, key aspects of improving the methodology for constructing this indicator taking into account the innovations in the System of National Accounts 2008 have been determined. Relevant issues of using gross domestic product in socio-economic analysis and supplements to the system of analytical indicators of the System of National Accounts with social indicators have been considered in the article.

Hidden in Plain Sight: Unpaid Household Services and the Politics of GDP Measurement

ABSTRACT Gross domestic product (GDP) is one of the world’s most influential and widely cited economic indicators. However, outside of the industrialised, market-based context in which the indicator was first designed, GDP measurement suffers from a number of biases and blind spots. The article zooms in on one of these: the exclusion of unpaid household services from the production boundary of the System of National Accounts, the international standard underpinning GDP methodology. While GDP has expanded over time to include activities as diverse as financial services and the informal sector, the treatment of unpaid household services has remained unchanged. Why is this? I find that staff in the statistical departments of international organisations such the United Nations, International Monetary Fund and World Bank have a tremendous degree of agency in the governance of GDP. While these statisticians are aware of and engage with criticisms, they reject the inclusion of unpaid household services based on shared professional norms and economic ideas.

Alternative Land‐Price Indexes for Commercial Properties in Tokyo

The System of National Accounts (SNA) requires separate estimates for the land and structure components of a commercial property. Using transactions data for the sales of office buildings in Tokyo, a hedonic regression model (the “builder’s model”) was estimated and this model generated an overall property price index as well as subindexes for the land and structure components of the office buildings. The builder’s model was also estimated using appraisal data on office building real estate investment trusts (REITs) for Tokyo. These hedonic regression models also generated estimates for net depreciation rates, which can be compared. Finally, the Japanese government constructs annual official land prices for commercial properties based on appraised values. The paper compares these official land prices with the land prices generated by the hedonic regression models based on transactions data and on REIT data. The results reveal that commercial property indexes based on appraisal and assessment prices lag behind the indexes based on transaction prices.