1. REGIONAL ACCOUNTS
Ilham Malkaoui

2. Overview presentation
Regional Accounts in a system of statistics
Regions
Users
Concepts
Methods / sources
Quality monitoring

3. Regional Accounts in a system of statistics
Statistical matrix Degree of integration Time Single Combined Integrated Future Month Quarter Year

4. System of statistics Region as a third dimension
Time
Region
Degree of
integration

5. Regions NUTS: Nomenclature des Unités Territoriales Statistiques
level 1 to 3: ‘regions’
former NUTS levels 4 and 5: LAU 1 and 2 (Local Administrative Units)
Since 2003 NUTS regulation

6. the Netherlands

7. the Netherlands
NUTS 1
4 regions

8. the Netherlands
NUTS 2
12 provinces

9. the Netherlands
NUTS 3
40 regions

10. Users of Regional Accounts
national government
local / regional government
universities
research companies
Eurostat / European Committee

11. Policy European Union Treaty of Rome (article 158):
In order to its overall harmonious development, the Community shall develop and pursue its actions leading to the strengthening of its economic and social cohesion.
In particular the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas.

12. Flevoland

13. Structural Funds,

14. Gross Domestic Product per Region
As Gross Domestic Product for a country (GDP)
Production process (creating value added)
and employment associated with it
Regional production ≠ Regional income

15. Extraction of minerals in Groningen

16. Basic concepts in regional accounting
Sum Regions = National figure
Same basic concepts as in National Accounts:
resident units (residency principle and units)
transactions (flows and balancing items)
accounts
sectors
If possible, the same statistical sources
ESA 2010: European System of National
and Regional Accounts (chap.13)

17. Some specific regional concepts
Territory: Extra-Regio Units/transactions: Multi-regional units

18. Extra-Regio For activities in the economic territory of a
country but not in one of its regions:
Embassies abroad
Exploration and exploitation of oil and gas on the continental shelf

19. Extra-Regio For activities in the economic territory of a
country but not in one of its regions:
Embassies abroad
Exploration and exploitation of oil and gas on the continental shelf
Sum regions + Extra-Regio = National figure

20. Multi-regional units
Statistical units, mostly: Kind of Activity Unit (KAU) Consists of one or more Local Kind of Activity Units (Local KAU)

21. Albert Heijn

22. Multi-regional units
a. KAU = 1 Local KAU b. KAU = 2 Local KAUs in 1 region c. KAU = 2 Local KAUs in 2 regions Pay attention: Industry code local KAU = Industry code KAU

23. Some practical problems
Construction industry
Company region A region B Building site
Railways / pipeline company
region A region B region C

24. Sources Total national accounts (SUT + labour) SBS employment
Other available sources

25. Methods to compile Regional Accounts
production
income
(expenditure)
Depending on availability of regional information:
bottom up
mixed method
top down

26. Regional ‘income’ concepts balancing items
Gross Domestic Product per Region
Primary Income per Region
Disposable Income per Region

27. Primary Income per Region
As National Income
Compiled according to the resident region
compensation of employees
property income (interest, dividends)
Mixed income

28. Disposable Income per Region
As Disposable Income for country
Appropriate for ‘standard of living’
Takes also income transfers into account
Which sectors?
Households!
Government consumption?
- education, health care service (social transfers in kind)
- overall government consumption and savings

29. Restrictions Regional Accounts
Gross domestic product per region for the total economy and for the sector households Primary and disposable income Comments (possible Regional impact) -Price level -Moonlighting not explicitly taken into account

30. Quality monitoring of Regional Accounts
GDP per region and per inhabitant
Inventory
Compilation table
Transparency!

31. Thank you for your attention!
Regional Accounts
Thank you for your attention!