1. Market and non-market output
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. Allocation of units to sectors

3. Market non-market output
A crucial distinction:
Market output has ‘economically significant prices’
ESA 2010: Economically significant prices are prices which have a substantial influence on the amounts of products producers are willing to supply and on the amounts of products that purchasers wish to acquire.

4. Market non-market output
50% criterion: if sales to consumers ≥ 50% of costs market < 50% of costs non-market Over a multi-year period.

5. Market non-market output
Sales of goods and services: market output (P.11) increased by payments for non-market output (P.131), if any. Own-account production is excluded. Sales exclude also all payments received from government unless they are granted to other producers undertaking the same activity.
Production costs: sum of intermediate consumption, compensation of employees, consumption of fixed capital and other taxes on production. Subsidies on production are not deducted. Own capital formation is excluded.

6. Market non-market output
Implication of 50% boundary: If public sector unit mainly financed by: private sector (sales) market (≥ ) Government non-market

7. Market non-market output
If a public sector unit is mainly financed out of the revenue of purchases by households, financial or non-financial corporations, non-profit institutions or non-residents it is a market producer, to be classified in S.11 or S.12.
If a public institutional unit is mainly financed by general government according the unit’s costs or global budget, the unit should be classified as part of S.13.
The remaining public institutional units should be classified by sector according to the 50% rule.

8. Thank you for your attention
CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION