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Part II. Supply and Use tables

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Presentation on theme: "Part II. Supply and Use tables"— Presentation transcript:

1 Part II. Supply and Use tables
30 October 2006 SUPPLY & USE TABLES Leo Hiemstra Piet Verbiest Statistics Netherlands, National accounts in practice

2 BASIC TERMINOLOGY

3 - INTERMEDIATE CONSUMPTION
BASIC TERMINOLOGY + PRODUCTION VALUE OF PRODUCED COMMODITIES (OUTPUT) - INTERMEDIATE CONSUMPTION VALUE OF COMMODITIES USED IN THE PRODUCTION PROCESS = VALUE ADDED (GROSS) DIFFERENCE BETWEEN PRODUCTION AND INTERMEDIATE CONSUMPTION INCOME GENERATED WITH PRODUCTION

4 BASIC TERMINOLOGY +GROSS VALUE ADDED - COMPENSATION OF EMPLOYEES = GROSS OPERATING SURPLUS/ MIXED INCOME

5 + GROSS OPERATING SURPLUS/ MIXED INCOME - CONSUMPTION OF FIXED CAPITAL
BASIC TERMINOLOGY + GROSS OPERATING SURPLUS/ MIXED INCOME - CONSUMPTION OF FIXED CAPITAL = NET OPERATING SURPLUS/ For all units together: å GROSS VALUE ADDED = Gross Domestic Product :GDP å NET VALUE ADDED = Net Domestic Product

6 GROSS VALUE ADDED : BASIC TERMINOLOGY INCOME GENERATED WITH PRODUCTION
LABOUR CAPITAL ENTREPRENEUR/OWNER SELF-EMPLOYED: MIXED INCOME

7 EXERCISE Basic terminology

8 A SIMPLE SET OF SUPPLY AND USE TABLES
Part II. Supply and Use tables 30 October 2006 A SIMPLE SET OF SUPPLY AND USE TABLES Intro zelf Doel en opbouw van deze module Mededelingen over de rest van de cursus Vragen en opmerkingen tijdens de les AGT van 1993 op P-serie niveau uitreiken Statistics Netherlands, National accounts in practice

9 TERMINOLOGY Production (P) Intermediate consumption (IC)
Value added (Y)

10 TERMINOLOGY Final expenditure: Gross capital formation (I)
Consumption (C) Exports (E) Imports (M)

11 Basic identities (1) P + M = IC + C + I + E (2) Y = P - IC
(3) Y = C + I + E - M (4) Y = W + OS/MI (Total supply = Total use) 3 methods for calculating Value added / GDP

12 Three methods for computing GDP and National income
Part II. Supply and Use tables 30 October 2006 Three methods for computing GDP and National income A. Production method -> based on value added by industry Y = P - IC B. Expenditure method -> based on expenses consumption capital formation exports - imports Y = C + I + E - M C. Income method -> based on information on income by sector In Supply and Use matrices we combine Production and Expenditure method Statistics Netherlands, National accounts in practice

13 Basic identities (1) P + M = IC + C + I + E (2) Y = P - IC
(3) Y = C + I + E - M (4) Y = W + OS/MI Total supply = total use Production method Expenditure method Income method

14 Basic identities

15 Basic identities

16 Basic identities

17 Basic identities

18 Basic identities

19 Basic identities

20 SUPPLY Output of industries Import Total Commodities

21 USE Commodities Input of industries export cons. invest. Total Comp. empl. Op. surplus

22 SUPPLY USE Output of industries Import Total Input of Cons Export
Invest. total Commodities Y P M IC+Y C E I Value added P – IC = Y = GDP P - IC = Y = GDP

23 EXERCISE A simple set of supply and use tables

24 Part II. Supply and Use tables
30 October 2006 SUPPLY & USE TABLES Statistics Netherlands, National accounts in practice

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