bluuebunny/crossref_metadata_2025 huggingface dataset:
THE SIZE AND GROWTH OF THE HIDDEN ECONOMY IN NORWAY
Authors: Isachsen Arne Jon , Strøm Steiner
Published: March 2005

The present size of the hidden economy in Norway is between 4 and 6 percent of GDP, of which hidden labor income constitutes about half. A survey approach reveals that 4/5 of the population is of the opinion that people in general accept income from moonlighting that is not reported, and 2/3 believes that this share of acceptance is on the increase. Furthermore, surveys clearly show that hidden labor services are of satisfactory quality, that they mainly are paid for in cash, but with checks being increasingly used, and that buyers find it easier to obtain services from the hidden labor market than from the regular one. A shortening of the work week in order to alleviate unemployment may result in an increased supply of hidden labor.
COMMODITY BALANCES AND NATIONAL ACCOUNTS: A SAM PERSPECTIVE
Authors: Pyatt Graham
Published: March 2005

This paper is concerned with the treatment of commodity and activity balances in a national accounts context. It makes use of a general method for reducing the size of a social accounting matrix (SAM) by apportioning the elements of one or more accounts to the rest. The national accounts are looked at in terms of their usefulness for policy analysis, not least analysis of the impact of price changes. The SNA convention of separately distinguishing activities and commodities is endorsed. However, in contrast to the SNA, it is argued that for analytic purposes commodity transactions should be recorded at market prices, with a separate account for each of the markets for a given commodity in which a distinct price prevails. The SNA SAM is shown to be a reduced form of the SAM resulting from this recommended treatment of commodity transactions, while a further round of reductions (apportionments) yields SAMs which are familiar from input‐output analysis, in which activities and commodities are not separately distinguished. It is argued that no special effort would be required to produce SAMs in which commodity balances are recorded at market prices as recommended here (the necessary data are also required to produce the conventional SNA tableaux), and that all reduced form versions of such SAMs, including the SNA, are inferior as a basis for the analysis of price effects on the structure of production.
INTEREST, DISTRIBUTION OF VALUE ADDED AND INFLATION: INFLATION‐INDUCED DIFFICULTIES IN THE INTERPRETATION OF DUTCH NATIONAL ACCOUNTS*
Authors: van der Laan Paul , van Tuinen Henk K.
Published: March 2005

The present paper examines the inflationary bias of sectoral income transactions in national accounting data. An inconsistency of these data is pointed out. Alternative income measures are estimated by adjusting the standard national accounting data for inflationary gains and losses. These gains and losses arise from financing by loan capital. Several issues concerning income concepts and alternative methods for the measurement of inflationary gains and losses are discussed. It is concluded that an adjustment of sectoral income data for these gains and losses produces a very different picture of the sectoral distribution of income.
ON TRENDS IN THE GAP BETWEEN RICH AND POOR IN LESS DEVELOPED COUNTRIES: WHY WE KNOW SO LITTLE
Authors: Berry Albert
Published: March 2005

This paper considers the problems involved in measuring trends over time in inequality in less developed countries. After considering some of the conceptual problems involved in choosing a measure of economic welfare, the period it should cover, and the statistical units to which it should be applied, the paper goes on to draw up a list of minimum data requirements for reaching reliable conclusions about such trends. It concludes that in many countries the available information falls well short of the minimum list, and it explores various sources of indirect evidence on trends in distribution. The central argument is that the available data permit no easy tests for trends in the level of economic inequality in less developed countries. At present, the best bet is to complement evidence on income distribution with available data on consumption distribution and on wage trends and production aggregates by occupational and sectoral groups. Inconsistencies will highlight problem areas, and their reconciliation should provide a firmer foundation on which to draw conclusions about distributional trends.
ADAPTATION OF DETAILED INPUT‐OUTPUT INFORMATION: RESTRUCTURING AND AGGREGATION
Authors: Asger Olsen J.
Published: March 2005

This article deals with problems of construction of “square” input‐output tables from detailed commodity and industry data and operationalization of the tables for use in econometric modeling. The adaptation procedure suggested is quite new and involves perfect and imperfect aggregation, and suppression of insignificant cells of the tables.

Using slight modifications of well‐known input‐output methods (to make definitions conform to general concepts of network flow theory) it is shown that the construction and aggregation of tables, as well as the suppression of minor cells, can be viewed as still higher levels of the very same process: the search for a manageable model with roughly the same abstract properties as the original detailed, but overwhelmingly large, model.

Simultaneously a consistent input‐output terminology is suggested with fewer symbols and more rules than usual.

The adaptation procedure has been applied successfully to the 1982 version of ADAM, the macroeconometric model operated by Danmarks Statistik (the Danish Central Bureau of Statistics).
STATISTICAL UNITS STANDARDS AND CENTRAL REGISTER SYSTEMS: KEYS TO THE DEVELOPMENT OF ECONOMIC ACCOUNTING
Authors: Fergie Ron
Published: March 2005

National accountants, model builders and analysts who work with statistical material that has been compiled without the discipline of well‐developed unit standards rules and central register controls may be constructing information systems that are basically unsound because of the uncertain nature of their building bricks of economic units.

This paper draws attention to the nature and importance of statistical unit standards and central register systems in the provision of economic statistics for economic accounting, planning and management. These are viewed as essential conceptual and operational tools for compiling economic statistics on an integrated basis and for making progress towards establishing a comprehensive data base with positive links between macro economic analysis and data about individual economic agents. Some of the problems and possibilities for countries who wish to proceed along these lines are discussed, with particular reference to the experience of Australia.
HEALTH CARE ACCOUNTS—A CONCEPTUAL FRAMEWORK AND AN ILLUSTRATIVE EXAMPLE*
Authors: Sunga Preetom S. , Swinamer Janet L.
Published: March 2005

Canadian statistics of the health care delivery system are generated under a variety of concepts, methodologies, definitions, and classifications by the numerous individual units, institutions, and organizations involved. This paper presents an overview and a framework for satellite accounts on health care delivery. Its objective is to enable the organization of economic and financial information on health care delivery activities from different sources into a set of consistent statistics detailing current expenditures, current revenues, purposes of spending, and source and application of funds in the health care delivery system. It is recognized that this economic framework is only a first stage in establishing a complete health information framework which could link economic with social and demographic data. A sample set of accounts for the province of Ontario in the fiscal year 1977‐78 is presented to demonstrate the feasibility of establishing such satellite accounts.
POSSIBILITIES AND PROBLEMS OF RECONCILIATION OF THE SNA AND THE MPS
Authors: IVANOV YUOURI
Published: March 2005

This paper reviews the underlying concepts and definitions of SNA and MPS in order to identify those areas where the differences in the content or classifications of the corresponding aggregates of these systems of national accounting can be eliminated or reduced in the course of the present or the future work on the revision of both SNA and MPS. This will bring the systems nearer to each other and improve international comparability of national income data. In cases where such a reconciliation is not feasible, the introduction of certain modifications or clarifications in the selected sections of SNA and/or MPS will be a useful step.

Pursuing this objective, the paper introduces the following classification of the intersystem differences:

—differences in the fundamental concepts and definitions;

—differences caused by the peculiarities in the

—institutional set up;

—so called “incidental” differences.

On examining the above classification the paper comes to the conclusion that each group requires its own approach. The second conclusion is that possibilities for reducing intersystem differences are more promising in the case of the third group.

The paper uses the simplified MPS matrix in order to demonstrate the usefulness of certain modifications in the MPS classifications. These modifications do not imply any deviations from the fundamental concepts and yet they could facilitate international comparability.

The paper also discusses certain modifications (or clarifications) concerning some aggregates which could be useful in the context of international comparisons.
NATIONAL AND SECTOR BALANCE SHEETS IN CONCEPT AND IN PRACTICE
Authors: RUSHBROOK TONY , WELLS JACK
Published: March 2005

National and Sector Balance Sheets are playing an increasingly important role in economic analysis. This article reviews the actual and potential applications and considers whether there is a case for modifying SNA practice and recommendations to increase the value of the contribution that balance sheets can make to analytical work.

The major sections of the article relate respectively to financial and non‐financial items in national and sector balance sheets. In the context of financial items, there is discussion of the perception of what constitutes an individual's total financial portfolio and therefore which items should be included or excluded when assessing the financial assets of the household sector (e.g. various forms of pension entitlement and life assurance). The relevance of marketability is considered as is the possibility of attempting to identify a separate domestic households sub‐sector. The other main topic considered in relation to financial balance sheets is the relevance of adopting a single approach to valuation; alternatives are considered in relation to the stock of public sector debt.

So far as non‐financial assets are concerned, difficulties arise with the national accounting practice of treating the acquisition of consumer durables and military assets as current expenditure. While it is considered, on balance, best to continue to treat the purchase of consumer durables as current expenditure, though recording the value of the stock of durables outside the main body of balance sheets, it is recommended that “non‐fighting” assets such as transport ships and aircraft and hospitals should be treated as capital assets. The treatment of sub‐soil assets and the valuation of fixed assets is also discussed.

Reconciling balance sheets with flows data is an essential step if balance sheets are to be fully exploited; some comments are offered on the UN guidelines on this topic.
ADJUSTING NET WORTH FOR PRICE CHANGES WITH REFERENCE TO THE CANADIAN SYSTEM OF NATIONAL ACCOUNTS
Authors: Sunga Preetom S.
Published: March 2005

This paper develops a rationale for a comprehensive measure of income and provides illustrative calculations within the Canadian System of National Accounts for making adjustments to net worth for price changes.

The paper notes that the System of National Accounts is designed to provide a number of individual aggregates measuring total production, income, savings and net worth. There is no single overall comprehensive measure which reflects the combined effect of changes in income and wealth. Such a measure is of particular importance in periods of rapid or extensive price changes which affect not only purchasing power of income but also the value of assets held and liabilities outstanding with consequences on net worth positions. This paper explores these issues and develops techniques for measuring the effects of specific and overall price changes with respect to net worth of the various sectors in the economy, illustrated with data from the integrated Canadian System of National Accounts.
CYCLICAL FLUCTUATIONS IN FACTOR SHARES AND THE SIZE DISTRIBUTION OF INCOME
Authors: Nolan Brian
Published: March 2005

The way in which cyclical fluctuations in activity in the U.K. economy affect factor income shares and the channels through which these effects work through to the size distribution of income are traced. Using National Accounts data, the impact of an upturn in activity in increasing the shares of profits and self‐employment income in factor incomes, and of self‐employment and rent, interest and dividends in personal incomes, is quantified. Using Family Expenditure Survey micro‐data, the resulting shift in decile shares in personal income, which is towards the top of the size distribution, is estimated.
A MICROCONSISTENT DATA SET FOR CANADA FOR USE IN REGIONAL GENERAL EQUILIBRIUM POLICY ANALYSIS1
Authors: St‐Hilaire France , Whalley John
Published: March 2005

This paper describes the sources and methods used in assembling a microconsistent regional data set for Canada for 1981 for use in counterfactual general equilibrium policy analyses focussing on regional impacts of government policies.

A microconsistent data set at the regional level requires assembling detailed consistent accounts of production and demand by region, of interregional and international trade flows, and of transactions involving multiple levels of government. For many or most countries, the data requirements associated with regional general equilibrium analysis preclude this form of work. But because of the substantial progress made in recent years in developing provincial data sources in Canada, such as the provincial input‐output tables and the provincial economic accounts, the situation in Canada is different. Using these data, it is possible to construct an interregional microconsistent benchmark data set at a suitable level of commodity detail for subsequent model use. This data set has already been used in an initial evaluation of a number of Canadian regional issues (see Trela and Whalley (1985)). The methodology used follows that presented in an earlier paper of ours (St‐Hilaire and Whalley (1983)) which described the construction of a 1972 national data set for Canada developed for tax policy analysis.
A FRAMEWORK FOR REGIONAL ACCOUNTS: AN AUSTRALIAN PERSPECTIVE
Authors: Walters R. J.
Published: March 2005

The Australian Bureau of Statistics (ABS) has recently published a set of experimental estimates of gross State product at factor cost and its income components for the States of Australia (1): The regular compilation and publication of the estimates is also commencing. In compiling the estimates, certain conceptual issues were confronted. Others were recognized but have not required final resolution as yet because they are beyond the scope of the estimates presently compiled.

This paper considers the development of a framework for regional accounts for countries with regional characteristics broadly similar to those of the Australian States by starting with the SNA framework that applies at the national Ievel. The difficulties that arise are highlighted and alternative approaches for dealing with specific issues discussed. These alternative approaches can have a significant impact on measured State relativities and performance over time. In some instances the choice between approaches may be narrowed because of practical considerations in the same way that the SNA is a conceptual framework that nevertheless has to take account of practicalities. The issues largely involve consideration as to whether or not to regard certain activities as extra‐territorial in nature. If an extra‐territorial concept is not adopted choices must be made on how to allocate data items related to such activities by State.
EVIDENCE ON RELATIONSHIPS AMONG ALTERNATIVE MEASURES OF CONCENTRATION: A TOOL FOR ANALYSIS OF LDC INEQUALITY
Authors: Berry Albert
Published: March 2005

The evidence on economic inequality in nearly all developing countries is both seriously incomplete and of moderate to poor quality. In addition, information often corresponds to distributions which appear to be less revealing and useful than other ones; thus it can be argued that the frequently available distribution of income among households ranked by household income is less helpful than the seldom found distribution of consumption among persons ranked by per capita household consumption. Whether one's objective is to assess inequality in some absolute sense or (especially) to make comparisons across countries or evaluate trends over time, it is useful to know whether systematic relationships exist among various measures of inequality, in particular between those most commonly available and those conceptually most interesting. Illustrative comparisons of a variety of inequality indicators are presented. They suggest that in developing countries the concentration of income among persons (assuming equal distribution within the family) does not differ much from the concentration among households. They also suggest that the concentration of consumption is somewhat less unequal than that of income, the ratio of the respective Gini coefficients tending to cluster around 0.85 to 0.90.
THE INEQUALITY OF WEALTH I N BRITAIN'S NORTH AMERICAN COLONIES: THE IMPORTANCE OF THE RELATIVELY POOR
Authors: Osberg Lars , Siddiq Fazley
Published: March 2005

This paper presents original estimates of the distribution of personal wealth in Nova Scotia, Canada in 1871 using the estate multiplier technique and discusses the sensitivity of estimates of the wealth distribution to the assumed wealth holdings of non‐probated decedents. We examine, in particular, the implications of assuming: (1) that non‐probated decedents had zero wealth, (2) that the wealth distribution was quasi‐Paretian (with parameters that can be estimated from the distribution of wealth of probated decedents) or (3) that the wealth distribution had the form assumed by A. H. Jones in her analysis of wealth inequality in the Thirteen Colonies in 1774. We conclude that it is unlikely that large estates escaped the probate process in Nova Scotia, but it is also unlikely that all non‐probated decedents had equal wealth‐thus our “best guess” is that the wealth distribution of non‐probated decedents was quasi‐Paretian. However, a methodology similar to Jones' would have implied considerably less measured inequality in the wealth distribution and greater average wealth in 1871– and would therefore have altered our perception of long term trends in the distribution of wealth and in the rate of accumulation of wealth. The measurement of wealth inequality in a society with a significant slave population, such as the thirteen colonies in 1774, is also highly sensitive to the treatment of slavery. Our preferred estimates of wealth inequality in Nova Scotia in 1871 and in the Thirteen Colonies in 1774 indicate a much higher inequality in the distribution of personal wealth than exists today.
MICRO‐MACRO LINK FOR GOVERNMENT
Authors: Bloem Adriaan M.
Published: March 2005

In the Dutch statistics on government finance a micro/macro link is established. The paper describes why and how this has been done. It appears to be of relevance to the users of the statistics to present two different data sets: one according to an accounting/administrative point of view and one fitting in the National Accounts. The main features of the way in which these data sets are derived from the underlying bookkeeping documents are given and it is shown how they relate to the accounting and juridical structures of the various government agencies. It appears that in order to arrive at homogeneous data sets, adaptations are in order, mainly bearing on the entries; for the National Account data further transformations, relating to transactions as well as transactors, will appear necessary. It will be enunciated how the relation between these data sets is shown in the statistics on government finance and how, in the same course a micro/macro link is provided for.
A CONCEPT OF SATELLITE ACCOUNT IN THE REVISED SNA
Authors: Teillet Pierre
Published: March 2005

Within the last two decades, national accountants wondered whether they were able to solve problems that in many respects were of the squaring the circle type: how could they embellish their representation of the economy without having their instrument grow heavier and less flexible? How could they elaborate synthetic frameworks in fields of collective concern that could both be specific and insure a dialogue with macroeconomics? How to keep consistent with the central framework and at the same time experiment with some freedom and flexibility. Satellite accounts are an answer to these questions. Much experience has been accumulated on satellite accounts in both national statistical offices and in international organisations. This paper provides a survey of this work. After an introduction (Part 1) devoted to stating the question, we try to propose a classification for the different types of satellite accounts (Part 2). Then we show their common characteristics (Part 3). However, this exercise would still remain abstract if we did not present samples of currently produced accounts. That is what we do in Part 4 with four examples. These examples have purposely been chosen in fields where many countries and international organizations have heavy investments, thus insuring the specific results will be obvious.
THE NONPROFIT SECTOR OF THE U.S. ECONOMY: A METHODOLOGICAL STATEMENT
Authors: Rudney Gabriel , Young Paula
Published: March 2005

United States input‐output accounts identify and measure the interrelationships between the various industries in the United States economy. However, these accounts do not identify nonprofit activities from their for‐profit counterparts in the service‐producing sector. This paper, prepared by Gabriel Rudney and Paula Young, presents the methodology and summary data produced by disaggregating the service‐producing industries to identify separately nonprofit activities.

The input‐output accounts for 1977 produced in this study include 107 industries, but in this paper the results are summarized into 14 industries showing only nonprofit and for‐profit components. The GNP and total outputs in this study are consistent with the revised input‐output accounts for 1977 prepared by the U.S. Department of Commerce, Bureau of Economic Analysis.
THE IMPACT OF DROUGHT ON THE NATIONAL ACCOUNTS FOR LIVESTOCK IN SAHELIAN COUNTRIES
Authors: Le Nay Jean , Mathis Jean
Published: March 2005

The evaluation of livestock production in the United Nations System of National Accounts implies a measure which is inconsistent with the general principle evaluation of production in this system.

This paper deals with a critical appraisal of the methods used by the SNA and two sahelian countries in livestock accounting.

Finally, estimations of NIGER'S GDP over the period 1983 to 1985 are carried out, using the four livestock production assessments presented. Differences in GDP's evaluations are large, reaching 17 percent in 1984 and 7 percent in 1985 in terms of rate of growth.
THE MEASUREMENT OF HOUSING OUTPUT: U.S. AND SOVIET CASE STUDIES
Authors: Prell MarkA.
Published: March 2005

This paper examines the measurement of the output of the Housing industry in real GNP accounts of the U.S., the Soviet Union, and selected OECD countries. These real GNP accounts make use of quite different Housing indexes, based on different types of data. This paper's major empirical finding is that the (measured) growth rate of Housing output can be extremely sensitive to the type of index used.

After reviewing the concept of housing quality, the paper presents U.S. and Soviet case studies. The BEA and the CIA do not use identical procedures to measure Housing output for the U.S. and the Soviet Union: the BEA measures many more aspects of housing quality improvements than the CIA does. This difference in the two agencies’ procedures increases the growth rate of the US. Real Estate industry relative to the growth rate of the Soviet Housing industry. The idea behind the two case studies is to remeasure Housing output far the Soviet Union (U.S.) using an index that approximates the BEA (CIA) index. The purpose of these studies is the calculation of numerical magnitudes: to what degrees are the levels and growth rates of Housing sensitive to the type of index that is used. The calculations for the U.S. are useful because they show the important role of housing quality growth in the U.S., and because they make the magnitudes reported for the Soviet Union more credible. The Soviet case study provides numerical support for the proposition that the post‐WWII growth rate of Soviet housing quality has been considerable and exceeds the growth rate implicit in the CIA output figures.
ACCOUNTING FOR TIME USE
Authors: Pyatt Graham
Published: March 2005

In this paper the author discusses how statistics on time use can be integrated into a social accounting matrix representation of economic activity. Time use data are presented as an extended manpower matrix and related to Stone's basic dynamic framework for social statistics. The valuation of time and methods of imputation are then discussed in relation to the choice of production boundary. It is argued that any imputations of labour income must be balanced by valuing goods consumed at their user cost and that there is a case for imputing value to all uses of time.
THE CONTRACTING‐OUT PROBLEM IN SERVICE SECTOR ANALYSIS: CHOICE OF STATISTICAL UNIT
Authors: Postner Harry H.
Published: March 2005

The contracting‐out problem in service sector analysis is defined and considered from the viewpoint of choice of statistical unit. It is shown that both the enterprise statistical unit and the establishment‐ based unit are unsatisfactory for economic analysis. This leads to the recommendation for an “intermediate” statistical unit, namely the “division.” The division, by construction and definition, is shown to have desirable properties for analysis of the contracting‐out problem (and own‐account problem) relating to services. Some empirical evidence with respect to the Canadian service sector economy supports the analysis and suggests a new interpretation of conventional service sector growth statistics.
FINANCIAL CONSISTENCY IN LONGITUDINAL MICROSIMULATION: HOMEMAKER PENSIONS RE‐EXAMINED
Authors: Kennedy Bruce R.
Published: March 2005

Transfer programs, including public pension plans, do not generate wealth. In this paper methods of distributional analysis that lack budget constraints and are prone to illusions of wealth creation are criticized. A microsimulation analysis reported in “Homemaker Pension and Lifetime Redistribution” (Wolfson, 1988) is repeated using a conceptual framework that imposes a balance between the positive and negative impacts of transfer programs. This alternate analytical perspective reverses the distributional conclusions of the earlier study conducted using the same model.
A NOTE ON THE CONCEPT OF SERVICES
Authors: Drechsler Laszlo
Published: March 2005

Not one of the many service definitions proposed by various authors and applied in practice enjoy general acceptance. Is it feasible to reach an international agreement on the definition of services? The answer is probably yes; however, is it worthwhile to spend considerable resources to reach such an agreement. Does an overall services aggregate indeed provide important analytical uses? Many doubts are expressed in this respect. Authors of recent international work on the statistics of services tend to accept a more flexible attitude: instead of having one single definition on services, several service concepts could be applied depending on feasibilities and other circumstances of the various statistics. However, all service definitions should be based on the International Standard Industrial Classification (ISIC) and on the Central Product Classification (CPC), recently approved by the Statistical Commission of the United Nations.
INTEGRATED ENVIRONMENTAL AND ECONOMIC ACCOUNTING: FRAMEWORK FOR A SNA SATELLITE SYSTEM
Authors: Bartelmus Peter , Stahmer Carsten , Tongeren Jan van
Published: March 2005

National accounts have provided the most widely used indicators for the assessment of economic performance, trends of economic growth and of the economic counterpart of social welfare. However, two major drawbacks of national accounting have raised doubts about the usefulness of national accounts data for the measurement of long‐term sustainable economic growth and socio‐economic development. These drawbacks are the neglect of (a) scarcities of natural resources which threaten the sustained productivity of the economy and (b) the degradation of environmental quality from pollution and its effects on human health and welfare. In the present paper, the authors attempt to reflect environmental concerns in an accounting framework which maintains as far as possible SNA concepts and principles. To this end, the accounting framework is used to develop a “SNA Satellite System for Integrated Environmental and Economic Accounting” (SEEA). Environmental costs of economic activities, natural asset accounts and expenditures for environmental protection and enhancement, are presented in flow accounts and balance sheets in a consistent manner, i.e. maintaining the accounting identities of SNA. Such accounting permits the definition and compilation of modified indicators of income and expenditure, product, capital and value added, allowing for the depletion of natural resources, the degradation of environmental quality and social response to these effects. A desk study of a selected country is used to clarify the proposed approaches, to demonstrate their application in future country studies and to illustrate the quantitative effects of the use of modified concepts on the results of analysis.
A COMPARATIVE ANALYSIS OF HOUSEHOLD WEALTH PATTERNS IN FRANCE AND THE UNITED STATES
Authors: Kessler Denis , Wolff Edward N.
Published: March 2005

We find that household wealth is distributed more unequally in the U.S. in 1983 than France in 1986. The Gini coefficient is 0.77 for the U.S. and 0.71 for France. There are also significant differences in the composition of wealth. Owner‐occupied housing accounted for half of total assets in France, and only 30 percent in the U.S., while corporate stock and financial securities amounted to 19 percent in the U.S. and 8 percent in France. The debt‐equity ratio was 0.13 in France and 0.20 in the U.S. The age‐wealth profile in the two countries had the characteristic hump‐shape predicted by the life‐cycle model, but the profile was much flatter in France and peaked for families aged 50–59 in France, compared to 60–69 in the US.
INCOME STRATIFICATION AND INCOME INEQUALITY
Authors: Yitzhaki Shlomo , Lerman Robert I.
Published: March 2005

This paper develops a new index of stratification that highlights the distinction between inequality and stratification. The stratification index captures the extent to which population subgroups occupy distinct strata within an overall distribution. The indices are group specific and control for group size. A weighted sum of group stratification indices is the third term that, together with between‐group inequality and a weighted sum of within‐group inequality adds to the overall Gini index of inequality.
A COMMENT ON CALCULATING WEALTH FROM INCOME FLOWS
Authors: Kooreman Peter
Published: March 2005

In a recent article in this Review and previous work, Wolff calculates household wealth embodied in (current and/or future) pension and social security benefits. The valuation in intended to be based on expected discounted income flows. However, the formulae Wolff uses are not the correct ones.
LABOUR FORCE PARTICIPATION, RACE AND HUMAN CAPITAL: INFLUENCE ON EARNINGS DISTRIBUTIONS ACROSS STATES
Authors: Slottje Daniel J. , Hayes Kathy J. , Shackett Joyce
Published: March 2005

In this paper we analyze the level of income inequality across states in 1970 and 1980 for several demographic groups. Furthermore, we examine the impact of labor force participation (LFP), education and other variables on inequality. We find that for tshe whole population, states with high LFP by females are states with low income inequality. The same holds true for states with high LFP for men. When we disaggregate by race, the results are quite consistent for whites, but not for blacks. States with relatively high education levels are associated with high inequality levels for the white cohort and the whole population, but there appears to be no similar association between education and inequality across states for blacks.
INCOME DISTRIBUTION AND ECONOMIC CHANGE IN PARAGUAY, 1972–88
Authors: Weisskoff Richard
Published: March 2005

The author reconstructs the income distribution of families in Paraguay for 1972, 1982, and 1988 by aligning three different urban household surveys with two farm income and two land tenure studies within a national accounts framework. He finds, first, a narrowing disparity between average family incomes in agriculture and non‐agriculture in the recent decade, and, second, a steady widening in the agrarian distribution in contrast to a more stable non‐agricultural distribution. The “cross‐over” of the Paraguayan agricultural distribution from one of greater to lesser equality than the non‐agricultural distribution is also found for a number of other recent cases and confirms Kuznets' speculation about the North American data. In the Paraguay experience, the “cross‐over” may be due to the deepening cleavage between the commercial minifundia and the modernizing latifundia in the areas of new settlement. Paraguay's countrywide distributions are also compared to other Latin American economies of similar income level and agricultural shares.
Productivity and American Leadership
Authors: Rowthorn Robert E.
Published: March 2005

A Review of W. J. Baumol, S. A. B. Blackman and E. N. Wolff, Productivity and American Leadership: The Long View
ROBERT J. GORDON'S CONCEPT OF CAPITAL
Authors: Denison Edward F.
Published: March 2005

Estimates of capital stock normally equate different models of capital goods by their production costs at a base date (a concept known as method 1 or K), not by their current marginal products (method 3, or J). Some economists advocate that, instead, different models be equated by the base‐date costs of providing characteristics of the goods, not of the goods themselves. The characteristics selected have, however, excluded the amounts of other inputs used in the production to which the good is devoted. Hence the method does not equate capital goods by their marginal products but instead by the gross products of the capital goods together with various amounts of associated inputs. Gordon recognizes this defect and believes he has remedied it empirically, but the steps he takes are too slight to support this view. It remains impractical to construct estimates that equate goods by their marginal products.
CONSISTENCY BETWEEN MACRO‐ AND MICRO‐DATA SETS IN THE JAPANESE HOUSEHOLD SECTOR
Authors: Maki Atsushi , Nishiyama Shigeru
Published: March 2005

This paper makes a comparative analysis of the micro‐data, the Family Income and Expenditure Survey (FIES) and the National Survey of Family Income and Expenditure (NSFIE) data, with the macro‐data, the System of National Accounts (SNA), figures for the Japanese household sector. The overall FIES/SNA ratio is about 80 percent. In comparing the results to those of other countries, the figure seems to be not bad. However, the treatment of categories such as Gross Rent, Fuel and Power, and Medical Care and Health Expenses, require further consideration. In this regard we consider imputed rent for owner‐occupied dwellings for the SNA and a sampling scheme for the FIES.
SIZE DISTRIBUTION OF WORKERS' HOUSEIIOLD INCOME AND MACROECONOMIC ACTIVITIES IN JAPAN: 1963–88
Authors: Yoshino Osamu
Published: March 2005

An attempt is made to examine empirically the relationship between the size distribution of workers' household incomes and the variables expressing macroeconomic activities. As a preliminary implementation, the income shares are first estimated by decile groups and several subdivided top income groups. Applying Blinder and Esaki's regression approach to the estimated data, the ratio of job offers to applicants, inflation rate, and the terms of trade arc found to significantly affect the distribution. Of these variables, the terms of trade should be taken into account to ascertain precisely the income distribution in Japan where foreign trade heavily affects economic conditions.
GROWTH AND WELL‐BEING: INTRODUCING DISTRIBUTION‐WEIGHTED GROWTH RATES TO REEVALUATE U.S. POST‐WAR ECONOMIC PERFORMANCE
Authors: Klasen Stephan
Published: March 2005

In order to improve on the income growth rate as an indicator of changes in well‐being, four composite indices of growth and income distribution are introduced and compared. When applied to the United
AN EXPENDITURE‐BASED BILATERAL COMPARISON OF GROSS DOMESTIC PRODUCT BETWEEN CHINA AND THE UNITED STATES
Authors: Ruoen Ren , Kai Chen
Published: March 2005

This paper presents a detailed bilateral comparison of GDP between China and the U.S. with 1986 as a reference date, using the purchasing power parity (PPP) approach formulated by the United Nations International Comparison Program (ICP). An estimate of PPP over GDP made for Chinese currency in this study was used t o estimate China's dollar per capita GDP in 1986 and 1991. The specific issues in the comparisons of the housing and the comparison‐resistant services categories were discussed and an approach similar to the estimation of shadow rent was exercised. The possible errors in the bilateral comparison were analyzed.
INTER‐COUNTRY AND INTERREGIONAL COMPARISONS OF INEQUALITY AND POVERTY
Authors: GUSTAFSSON BJÖRN
Published: March 2005

Review of Smeeding, T., O'Higgins, M., and Rainwater, L. (Ed.), Poverty, Inequality and Income Distribution in Comparative Perspective

Borooah, V. K., McGregor, P. P. L., and McKee, P. M., Regional Income Inequality und Poverty in the United Kingdom
CATHOLIC‐PROTESTANT INCOME DIFFERENCES IN NORTHERN IRELAND
Authors: Borooah Vani K. , McKee Patricia M. , Heaton Norma , Collins Gråinne
Published: March 2005

The purpose of this paper is to analyse income differences betweeen Catholic and Protestant families in Northern Ireland (NI) using Family Expenditure Survey micro‐data. The paper's first conclusion is that there is much greater inequality within the Catholic and Protestant communities than there is between them. It's second conclusion, based upon econometric analysis of data for full‐time employees, is that the lower mean income of Catholics, relative to Protestants, could be entirely explained in terms of different rates of reward attached to a given set of labour market characteristics.
POVERTY IN MEXICO DURING ADJUSTMENT
Authors: Székely Miguel
Published: March 2005

The paper analyzes the changes in poverty in Mexico during the 1980s adjustment program. We decompose poverty into its distribution and growth components, as well as by population subgroups, in order to illustrate the causes of the deterioration in the standard of living of the poorest of the poor. We suggest a transformation of the methodology by Datt and Ravallion (1992), to determine the likelihood of future compensation for those sectors of the population which suffered higher social costs derived from the contractionary policies. The importance of this exercise, is that it shows that contractionary measures may provoke deep structural transformations in an economy, which can make it more difficult to eradicate poverty in a reasonable time horizon.
HISTORY AND MEASUREMENT IN THE SERVICE SECTOR: A REVIEW
Authors: MELVIN JAMES R.
Published: March 2005

Economic Council of Canada, Employment in the Service Sector

Delaunay, Jean‐Claude, and Jean Gadrey, Services in Economic Thought: Three Centuries of Debate

Griliches, Zvi (ed.), Output Measurement in the Service Sectors
POLLUTION AND POLLUTION ABATEMENT IN THE NATIONAL ACCOUNTS
Authors: Hamilton Kirk
Published: March 2005

Building on the approach of Weitzman, as extended by Hartwick and Mäler, five models of national accounts in a dynamic competitive economy with pollution externalities are constructed: flow pollutants, stock pollutants, fossil fuels and CO2, living resources and acid rain, and household defensive expenditures. The results measure welfare rather than national product per se. The general conclusions are that abatement expenditures should be treated as intermediate consumption, that adjustments need to be made for both pollution emissions and natural pollution dissipation processes, that marginal social costs should be used to value emissions, and that the level of environmental services must be valued in measuring welfare. Not only should household defensive expenditures not be subtracted from the welfare measure, under plausible assumptions the adjustment to welfare (as opposed to NNP) includes a value greater than the level of household defensive expenditure.
MULTILATERAL COMPARISONS OF OUTPUT, PRODUCTIVITY, AND PURCHASING POWER PARITIES IN MANUFACTURING
Authors: Pilat Dirk , Rao D. S. Prasada
Published: March 2005

This paper presents multilateral comparisons of output, productivity and purchasing power parities in manufacturing, for 1975 and 1987. Two multilateral approaches are considered, namely the Geary–Khamis method and the generalized Theil–Törnqvist method based on the EKS procedure. The paper discusses the problem of lack of additive consistency of the generalized Theil–Törnqvist index and the absence of constant price comparisons within this framework. Some procedures that lead to near additive consistency are proposed. The empirical results show that multilateralization does not substantially affect the results and that both the Geary–Khamis and the generalized Theil–Törnqvist index give results comparable to the binary comparisons.
VALUATION OF HOUSEHOLD PRODUCTION AT MARKET PRICES AND ESTIMATION OF PRODUCTION FUNCTIONS
Authors: Fitzgerald John M. , Swenson Matthew S. , Wicks John H.
Published: March 2005

This paper estimates household production functions directly, considers their characteristics, and compares them with previous indirectly estimated functions. Interviews with 135 Missoula, Montana area married couple households provided the data. The results suggest that endogeneity and a previous lack of output and capital data which led to the use of the indirect methodology are not insurmountable problems. The results tend to confirm the feasibility of directly measuring household outputs since the production function results are reasonable. Directly estimated household production functions offer the possibilities for estimation of short‐term household output changes and testing hypotheses about households' economic behavior.
GENDER, POVERTY AND THE INTRA‐HOUSEHOLD DISTRIBUTION OF RESOURCES
Authors: Findlay Jeanette , Wright Robert E.
Published: March 2005

Most empirical studies of poverty assume an equal sharing of resources between all household members. There is a growing body of research indicating that this assumption is not realistic. This paper explores how the unequal sharing of resources could potentially affect the measurement of poverty. Simulations based on micro‐data from two countries (Italy and the U.S.A.) are carried out under the assumption that women “lose” and men and children “gain” because of unequal sharing in the household. Our findings suggest that if there is significant intra‐household inequality of this type, as some writers have suggested, then conventional methods of poverty measurement will likely to lead to a serious under‐estimate (over‐estimate) of the incidence and intensity of female (male) poverty.
HOUSEHOLD SAVING AND PORTFOLIO CHANGE: EVIDENCE FROM THE 1983–89 SCF PANEL
Authors: Kennickell Arthur B. , Starr‐Mccluer Martha
Published: March 2005

There are few sources of high‐quality data on the dynamics of wealth accumulation. This paper uses newly available data from the 1983 89 panel of the Survey of Consumer Finances to examine household saving and portfolio change over the 1980s. Our main findings are as follows. First, median household wealth rose modestly over the period. Second, while overall wealth inequality increased, households in the top 1 percent of the wealth distribution in 1983 saw their share of total wealth decline, probably reflecting turnover among the very wealthy. Third, although age, income, and initial wealth had significant effects in regressions on household saving, a large part of the variation in saving was unexplained. Finally, there were clear life‐cycle patterns in the portfolios of assets and liabilities held by households, with younger households acquiring homes, businesses and all types of debts, and older households divesting themselves of these assets and debts.
HOW TO VALUE THE POORER PROSPECTS OF YOUTH IN THE EARLY 1990s?
Authors: Osberg Lars , Erksoy Sadettin , Phipps Shelley
Published: March 2005

Young workers in the 1990s can expect greater economic insecurity, as well as lower average earnings, compared to older workers, or compared to the youth of previous decades. The cost of greater insecurity depends upon an individual's probability of unemployment, marginal utility of income gains/losses and the extent to which individuals can smooth consumption over time by borrowing and drawing down assets. Since unemployment insurance cutbacks and higher unemployment have increased the risk exposure of youth, changes in the expected value of their income may understate utility losses as measured by the change in certainty equivalent income.

This paper uses a behavioural microsimulation model to compare the impacts of 1971 and 1994 unemployment insurance legislation and unemployment rates in Canada. It calculates both the expected value of income changes and, using a Stone‐Geary utility function, the change in inequality of well‐being (as measured by certainty equivalent income) for youth and for prime age workers. Both calculations reveal that youth were disproportionately affected by Canada's changing labour market environment. Very few youth have enough assets to finance consumption during spells of unemployment.
50‐YEAR RETROSPECTIVE OF THE IARIW: THE EARLY YEARS
Authors: Carson Carol S.
Published: March 2005

This paper, for the anniversary session on Milestones in Measurement, covers the years of the International Association for Research in Income and Wealth (IARIW) through the sixth General Conference in 1959. The first section of the paper describes the setting in which the Association was established and attempts to give a sense of the early years by identifying the people who were active in the Association and the topics that were being discussed. The second section identifies four milestones among the papers published in Income and Wealth, the volumes that brought together a selection of the papers from the General Conferences of this early period.