1 Giuseppe Cinquegrana Researcher National Accounts directorate Istat OECD Working Party - Paris, 15 October 2008 Estimating buildings, other structures and land in the perspective of compiling balance sheets by institutional sector

2 Assets (ESA1995) Buildings: Dwellings (AN1111) Non-residential buildings (AN11121) Other structures (AN11122) Machinery and equipment (AN1113) Land (AN211): Underlying buildings and structures (AN2111) Underlying under cultivation (AN2112) Consumer durables

3 Dwellings Dwellings (AN1111) (DW) Gross Fixed Capital Formation series in DW (GFCF DW) net of the value of the underlying land Perpetual Inventory Method (P.I.M.) Gross Fixed Capital Stock in DW (GFCS DW)

4 New methodology to estimate the stock of Dwellings Main sources: ISTAT 14th Population and Dwellings Census, 2001 OMI Observatory of the Real Estate Market CRESME Centre for Social and Economic Research on Construction and Territory

5 New methodology to estimate the Stock of Dwellings Years Stock of Dwellings : DW x AS x PRICE (per m2) DW: number of Dwellings AS: Average Surface (m2) market price : it includes the value of the land underlying dwellings

6 Number of dwellings [ DW ] DW t = DW t-1 + NC t 1.DW t-1 : number of dwellings for year t-1 2.NC t : number of new dwellings for year t (CRESME). Starting point : DW 2001 source: 14th Population and Dwellings Census ISTAT, 2001

7 AVERAGE SURFACE (m2) total gross surfaces (or commercial surfaces ) (m2) of dwellings by region (source: OMI, year ) It includes: 1.The inside surface of the rooms, 2.the homogenised surface of the accessory areas

8 PRICE per m2 : the purchase price of a building per m2 in the relevant period by region (source: OMI, year ) It includes the cost of construction, the profit margin and the value of land underlying dwellings.

9 Stock value of dwellings and accessory areas, Italy. Years

10 Value of land underlying the dwellings

11 Value of Dwellings by institutional sector OMI statistics provide : The shares of the total surface of dwellings owned by PP (individuals) and NPP (others). PP are assigned to S14

12 Value of Dwellings by institutional sector The stock of dwellings for S12 has been estimated from balance sheets data and has been detracted from NPP The remaining stock of NPP has been assigned to S11. No dwellings have been assigned to the market producers in S14 ( very small enterprises) Data do not include dwellings owned by General Government, which are estimated independently, by P.I.M., within the framework of GG accounts

13 Value of Dwellings by institutional sector

14 Value of Non-residential buildings by institutional sector

15 Other structures by institutional sector starting from GFCF series (valued net of the value of underlying land) Stock in Other Structures (OS) estimated by P.I.M for 1. General Government (S13) 2. Non-financial Corporations (S11).

16 Value of Other structures by institutional sector

17 Land under cultivation (AN2112) Main sources: ISTAT Census of agricultural holdings, year 2000” (CAH 2000). “Structure and productions of the agricultural enterprises” (SPA), years , INEA National Institute of Agricultural Economics “Survey on the land market” 2006

18 Land under cultivation (AN2112) Years Methodology: Value of the land under cultivation = UAA in ha X market price per ha UAA : utilized agricultural area market prices by region (Source: INEA)

19 Land under cultivation (AN2112) utilized agricultural area (UAA) arable land; permanent meadow and pasture; land under permanent crops. total agricultural area (TAA) it is given by the UAA plus : wooded area; other land.

20 Value of Land under cultivation (AN2112) UAA PRICES VALUE AN2112 [a] [b] [a] X [b] (HECTARES) (EUROS PER HECTARE) (MILLIONS EUROS)

21 Utilized Agricultural Area by legal form of the owner.

22 Value of Land under cultivation (AN2112) by institutional sector Millions euros.

23 Consumer durables Application of P.I.M. to estimate consumer durables stock (accumulating past purchase of assets over their service life) Necessary elements to apply P.I.M.: a)retirement model (truncated bell-shaped model) b)depreciation function (straight-line depreciation) c)average service life

24 Categories of durable goodsyears Furniture15 Big household appliances8 Medical equipment4 Personal transport equipment9 Non mobile telephones and telefax equipments5 Mobile telephones3 Personal computers5 Tv, radio,hi-fi, photographic equipment7 Jewellery39 Other durables goods3

25 Results: time series of gross and net stock, retirements and consumption of the stock at current replacement cost and as chain-linked values (reference year: 2000) Gross stock of consumer durables (current replacement costs). Millions euros Categories of durables Furniture386,017392,508399,713 Big household appliances52,10954,09556,697 Medical equipment6,3476,2736,238 Personal transport equipment507,107529,323551,383 Non mobile telephones and telefax equipment4,5724,5674,581 Mobile telephones10,54111,10711,215 Personal computers14,93913,85313,611 Tv, radio, hi-fi, photographic equipment25,56026,29526,548 Jewellery139,187145,713152,287 Other durable goods12,46013,82614,456 Total durable goods 1,158,8391,197,5601,236,729

26 Gross stock of consumer durables (chained-linked values). Millions euros Categories of durables Furniture346,406345,611344,113 Big household appliances50,88152,71954,884 Medical equipment5,9235,8035,705 Personal transport equipment454,828463,729472,020 Non mobile telephones and telefax equipment8,3409,83111,623 Mobile telephones19,31924,04728,649 Personal computers26,93028,64830,638 Tv, radio, hi-fi, photographic equipment27,98529,97131,801 Jewellery126,046129,768133,566 Other durable goods10,63210,38410,047 Total durable goods 1,077,2901,100,5101,123,046