bluuebunny/crossref_metadata_2025 huggingface dataset:
FACTORS IN CANADA‐UNITED STATES REAL INCOME DIFFERENCES
Authors: Daly D. J. , Walters D.
Published: March 2005

This paper is a part of a larger study of economic growth in Canada, following the methods developed by Edward Denison in his book The Sources of Economic Growth in the United States and the publication Why Growth Rates Differ. The new material in this paper relates to Canada and the Canadian/U.S. comparison, while the material on Northwest Europe is drawn from the Brookings study.

The present paper sets out the results to date on the differences in real output per employed person between Canada and the United States for one year, 1960. At this stage in our research the results indicate that the level of real output per employed person in Canada was about 20 per cent lower than in the United States in that year. On the basis of historical output data, it would appear that this margin of difference in Canadian/U.S. product levels has persisted throughout the present century.

The central part of this paper examines the significance of differences in factor inputs in Canada and the United States and their contribution to the difference in income. The level of inputs per employed person in Canada accounts for only about 2 percentage points of the income difference between Canada and the United States. These results indicate that the overwhelming part of the difference in output per employed person between the two countries reflects the differences in output in relation to total factor inputs, rather than the magnitude of other factor inputs used in combination with labour.

This result is consistent with earlier studies by Denison and others which have indicated the crucial importance of output in relation to total factor inputs, both in output growth over time and intercountry comparisons of output level.

The body of the paper can give only brief attention to the numerous conceptual and statistical questions that arise in such a wide‐ranging study, and the authors do not pretend to have tackled, let alone resolved, all of the wide range of problems related to this study. Nor do they claim any high degree of precision for the results, especially in the light of the statistical limitations of the basic data.
THE INTERNATIONAL COMPARISONS OF CONSUMPTION LEVEL CARRIED OUT BY THE POLISH CENTRAL STATISTICAL OFFICE
Authors: Krzeczkowska Eugenia
Published: March 2005

1. The problems presented have arisen in practice when carrying out international comparisons of national income and its elements between the CMEA countries. Some rough conclusions are drawn from the nearly completed comparison of consumption level between Poland and Austria.

2. The basic methodological principles of the comparison were similar to the methods used by the group of economists directed by Milton Gilbert and Irving Kravis in their comparison relating to Western European countries. However, a number of new problems have emerged in the course of our work which required practical and theoretical solutions.

Some differences in theoretical approach between the Gilbert‐Kravis study and ours are discussed. Gilbert and Kravis based their comparison as far as possible on average prices of commodity groups or quantity data, and price indexes for representative goods were applied only as a practical necessity. On the contrary in our study we based our calculation mainly on representative goods and their price relation as this method, in our opinion, takes into account quality differences, which escape from the picture in the Gilbert‐Kravis method.

3. Some special theoretical and practical problems of comparisons between countries having market economies and those with planned economies are presented in terms of the example of the comparison of consumption levels between Austria and Poland.

Three groups of questions are pointed out: (1) the problem of the definition and boundaries of the aggregates compared; (2) the problem of differences in pricing in the groups of products and services compared, resulting from the social policy of the government concerned; and (3) the problem of differences arising from general price policies in the countries compared.

4. At the end of the paper it is suggested that it would be useful to work out a “statistical information system”, which would make possible detailed comparisons of the volume of consumption among several countries and groups of countries without the need of conducting direct comparisons between each pair of countries.
THE MEASUREMENT OF CONSTANT PRICE AGGREGATES IN CANADA*
Authors: Emery Betty J. , Garston Gordon J.
Published: March 2005

This paper is in part directed towards a partial examination of Canadian concepts and methods used in the deflation of constant price estimates of gross domestic product from both an expenditure and industry‐of‐origin point of view, and in part toward certain problems arising in the development of a conceptually balancing set of accounts in real terms. It also provides reference material to allow the reader to pursue the detailed methodology and data underlying the Canadian constant price accounts.
COMPTABILITE NATIONALE A PRIX CONSTANTS ET A PRODUCTIVITE CONSTANTE
Authors: Courbis R.
Published: March 2005

The problem of national accounting “at constant prices” is in fact a problem of comparability of time series, as changes in the price structure preclude any direct comparison of economic flows. If such accounts are established they will make it possible directly to compare the same flow at two different times in the economy as a whole, and this without leaving the influence of other flows out of account. This makes it possible both to synthesize and to undertake analytical comparisons. The accounts could then be used for the study of time series, for projections or for structural studies (e.g. the mechanisms underlying the changing pattern of income distrubution).

The first part of this report sets out to study the main problems of compiling accounts at constant prices and to examine what conventions should be adopted.

The second part of the report considers how productivity gains can be explicitly shown in the national accounts. The proposed study plan restores the symmetry between price and productivity. As in the accounts at constant prices, gap variables are introduced to measure productivity gains. These variables can be interpreted in terms of surplus; the concept of surplus used here, however, is not the one adopted for the accounts in constant prices, but its dual. Setting up an accounting system “at constant productivity” therefore makes it possible to complete the information provided by an accounting system “at constant prices.”

These two systems can of course be integrated: this leads to the introduction of the concept of an accounting system “at constant prices and constant productivity.” Such an accounting system makes it possible to show, in the same accounting framework, the respective contributions of price changes and improved productivity to the gains realised by the different economic agents. It therefore gives a complete picture of “transfers” between the agents. At the same time, the data on price and productivity can be integrated with each other.
THE USE OF FLOW‐OF‐FUNDS ACCOUNTS IN MONETARY PLANNING IN YUGOSLAVIA
Authors: Dimitrijevic Dimitrue
Published: March 2005

The increased role of monetary and other financial variables has required the introduction of a quantitative framework for monetary policy planning. This has been found in a planning procedure based on flow‐of‐funds accounts. The very comprehensive structure of these accounts is relied upon to provide to policy makers with quantitative indications as to policy goals and measures for their implementation, and at the same time, to ensure a consistent incorporation of monetary planning in general economic planning.

There are annual and monthly plans. Annual planning involves two stages. The first is projection of flow‐of‐funds accounts on the basis of appropriate relationships, historical trends, institutional changes, economic policy targets, etc. The final result of this stage of planning is a projection of the Monetary Sector transactions as residuals, including changes in money supply and in short‐term credits as key projections. The second is decomposition of the Monetary Sector account into the Central Bank Sector and the Other Banks Sector, which makes possible a projection of measures for the implementation of projected changes in short‐term credits and money supply.

Monthly planning has two objects: first, to check annual projections and, if necessary, to adjust them to actual developments; and second, to introduce seasonal components. Seasonal adjustment is made only for the Monetary Sector, its two subsectors, and credit policy measures. Monthly projections are made every month for three months in advance.
THE NATIONAL ACCOUNTING SYSTEM AND THE PREPARATION OF THE FIFTH FRENCH PLAN
Authors: Aglietta Michel , Seibel Claude
Published: March 2005

This paper describes the process of development of the Fifth French Plan, and the role of the national income accounts in this process. Part I discusses methodological considerations relating to medium‐term projections. Part II outlines the methods actually used in projecting growth outlines in the Fifth Plan, and discusses the considerations that proved critical. Part III discusses the applications of the projections to the planning apparatus.
THE MEASUREMENT OF U.S. REAL CAPITAL INPUT, 1929–1967
Authors: Christensen Laurits R. , Jorgenson Dale W.
Published: March 2005

The purpose of this paper is to develop methods for the measurement of real capital input. These methods are based on perpetual inventory estimates of capital stock and corresponding estimates of capital service prices. Stocks and service prices are adjusted for relative utilization of capital. The resulting estimates represent a separation of income from capital into price and quantity components. Estimates of capital input in current and constant prices are constructed for corporate business, non‐corporate business, and households and non‐profit institutions in the United States for the period 1929–1967. These estimates are prepared in a form suitable for integration into the U.S. National Income and Product Accounts.
INCOME AND WAGE DISTRIBUTIONS PART I: A SURVEY OF THE LITERATURE
Authors: Bjerke Kjeld
Published: March 2005

This paper, the first of a two‐part series, surveys the literature in the field of income and wage distributions. The author divides work in this area into two schools: the theoretic‐statistical school, and the socio‐logical school. Within each of these groups he reviews leading contributions. He then examines the work of Tinbergen, which, the author feels, fits into neither of the older classifications; rather, Tinbergen approaches the distribution of income as a problem in analyzing the supply of and demand for various attributes, such as intelligence, physical strength, ability to get along with people, etc. In conclusion, the author points out areas which he feels need further work. The paper is based upon the author's book in Danish, Indkomst‐og lonfordelinger.
THE DISTRIBUTION OF INCOME BETWEEN SOCIO‐ECONOMIC GROUPS IN THE NETHERLANDS
Authors: Oomens C. A. , Palthe TH.
Published: March 2005

This paper reports on a study designed to improve the information on income flows and income distribution in the Netherlands national accounts by building a bridge between the national accounts and income tax statistics. The methods used are described in some detail, and the significance of the results obtained is discussed. The figures show rather substantial fluctuations in the share of proprietors relative to that of wage earners. This result is not unexpected, since the share of proprietors is much more sensitive to the level of economic activity, but it does limit the usefulness of the figures for short‐run economic policy determination. In the longer run, however, they do show what the development of the average incomes of the various social groups has been, and to what extent government action has contributed to that development.
MEASUREMENT BIAS IN PRICE INDEXES FOR CAPITAL GOODS*
Authors: Gordon Robert J.
Published: March 2005

The official U.S. price deflators for investment goods continue to be based on defective methodology, despite frequent criticism in recent years. This paper contributes new price information, which is combined with the empirical results from other studies to yield a revised investment deflator for the 1954–1963 period which (a) rises much more slowly than the official index and (b) declines relative to a revised price index for consumption expenditures.
EFFECT OF GROUPING OF DATA ON THE DIVERGENCE BETWEEN LASPEYRES AND PAASCHE FORMS OF QUANTUM INDEXES*
Authors: Horner F. B.
Published: March 2005

Historical data for the manufacturing industry in the United States and United Kingdom are quoted, showing in most cases divergences between Laspeyres and Paasche forms of the quantum index that are by no means negligible. When the Paasche index for two of the series is recalculated with quantity indicators for industries instead of for products, the divergence is greatly reduced, and when quantity indicators for industry groups are substituted it almost disappears. This raises some questions about the practices of econometricians and statisticians, which are discussed. In a mathematical appendix by E. R. Coleman it is suggested that the grouping effect referred to does not depend on the particular way in which the data are grouped in most quantum indexes.
THE IMPACT OF CHANGES IN TERMS OF TRADE ON A SYSTEM OF NATIONAL ACCOUNTS: AN ATTEMPTED SYNTHESIS*
Authors: Kurabayashi Yoshimasa
Published: March 2005

The objective of this paper is to reformulate the terms of trade effect within a framework of national accounts in constant prices. The issue has been discussed by Professor R. C. Geary, Dr. G. Stuvel and others. In what follows the author proposes a new formula for deflating the net factor income from abroad and the net lending to the rest of the world. It is shown that the terms of trade effect which follows from the formula be expressed as a synthesis of Geary's and Stuvel's approaches.

The author also shows that a similar approach be applied to the construction of the sector production account in constant prices. By formulating an appropriate deflator which is right for deflating factor incomes he concludes that the terms of trade arising from changes in inputs prices relative to output price be closely associated with the term which expresses the effect of productivity changes.
A NOTE ON MEASURING SECTORAL INPUT PRODUCTIVITY*
Authors: Watanabe Tsunehiko
Published: March 2005

This note attempts to shed some light on the relationship between the total factor productivity derived from national income accounts and the total input productivity based upon input‐output accounts, especially on a sectoral basis. Since there has been no positive evidence to support a constancy between changes in net and gross output in individual industries, the formulation of a measure of sectoral input productivity change by using the formula of the Divisia index based on input‐output accounts may be valuable in examining possible biases which are associated with a common notion of the total factor productivity. An operational definition of sectoral input productivity change and its relation to sectoral total factor productivity are discussed in the present note, in addition to its empirical application to the Japanese data.
HOW MISLEADING ARE INCOME DISTRIBUTIONS?
Authors: Stoikov Vladimir
Published: March 2005

Starting from the proposition that economic welfare is better measured by the capitalized value of expected future income at age 18 than by income at a point of time, the present paper explores the bias introduced in comparison of earnings and income distributions.

The earning distribution chosen for study is that for males in 1959 in the United States. It is shown that earnings distributions are biased and therfore can be considered highly misleading in most comparisons unless the comparison involves two groups with identical age distributions and identical distributions of earnings over the working life of earners.

Further, a most striking effect can be discerned in comparing the earnings to the present value distributions by educational level. As one moves up the educational ladder, the within‐group distribution of lifetime income becomes more and more equal, in sharp contrast to the findings for the distribution of earnings at a point in time.

The result are sufficiently interesting and striking to warrant further studies of distributions of present value of lifetime expected earnings (and income).
RELIABILITY CRITERIA FOR NATIONAL ACCOUNTS
Authors: Novak George J.
Published: March 2005

The reliability of national accounts is determined by the adequacy of a great variety of data sources and estimating methods. This inquiry focuses on major conceptual and methodological problems, and while it does not solve the reliability problem, it provides a framework for reliability analysis and suggests criteria for the evaluation of results; it also assists the producers of national accounts in determining the major trade‐offs between different areas of possible data improvement.
ACCOUNTING FOR THE PUBLIC SECTOR IN DEVELOPMENT PLANNING
Authors: Abraham William I.
Published: March 2005

This paper seeks to set out in some detail an accounting structure for the public sector of developing countries which will provide the information essential for development planning. The public sector is of course of special importance in planning because of its sheer size and its pivotal position for altering the contours of the entire economy. Yet the information available for this strategic area often falls far short of what is needed, and also of what could be provided with more effort.

The paper is divided into a number of sections, the first two of which are concerned with demarcating the public sector and with the nature of the accounting framework proposed. These are followed by sections dealing with the distinction between development and other expenditures; the need for separate financial information; public enterprises; the grouping of expenditures according to the purposes served; and income distribution. A final section touches briefly on some of the data problems involved in implementing the system. In addition, a full set of accounts for the public sector and its components is appended.
PROBLEMS OF MEASURING CAPITAL IN LESS DEVELOPED COUNTRIES
Authors: Ward Michael
Published: March 2005

The general problems of distinguishing between theoretical concepts and practical measures concerning capital are considered and the difference between various stock and flow measures of capital and their respective uses is defined. The qualifications and limitations to these measures in the interpretation of output changes are also discussed. Attention is concentrated on the initial, basic problem of how to measure gross capital stock and the special difficulties involved in using the perpetual inventory simulation method and census procedures in less developed countries to derive such estimates are broadly defined. Some of the special problems encountered in an attempt to undertake an inventory of industrial capital assets in Lesotho are also referred to and the paper concludes by expressing the view that there are at present far more important issues demanding higher statistical priority in less developed countries than the evaluation of capital stocks.
STOCHASTIC PROCESS MODELS AND THE DISTRIBUTION OF EARNINGS*
Authors: Osberg Lars
Published: March 2005

This article examines several hypotheses concerning the stochastic nature of year to year variations in individual incomes in light of newly available microdata on individual earnings. In particular, the models of Solow (1951), Champernowne (1953), and Rutherford (1955) are examined in some detail, and their predictions as to changes to be expected in the distribution of individual incomes are tested. The author concludes that the distributions arrived at using these models are not very similar either to each other or to the actual distribution of earnings. Thus, he believes that as an “explanation” of earnings dynamics stochastic process models are unsatisfactory. He further criticizes these models on the grounds that they foster a bias toward the belief in the inevitability, and perhaps desirability, of the current distribution of earnings.
WELFARE ECONOMICS AND THE MEASUREMENT OF NNP*
Authors: Romans J. Thomas
Published: March 2005

Some relationships between NNP and economic welfare are explored in the confines of a simple, static welfare maximization model. Various assumptions concerning both the measurement of NNP and the economic system underlying this model are dropped seriatem and the implications for the correspondence between NNP and economic welfare are examined.

The following conclusions emerge. There are several classes of resource reorganization in which NNP and welfare move in the same direction, so that NNP can serve as an ordinal proxy for welfare. These include changes in taxes or competitive imperfections which result in product substitution and movements along the transformation function.

With a general qualification, NNP‐welfare correspondence is preserved for allocative changes which affect the real costs and prices of goods included in NNP or of non‐included goods in inelastic demand; changes in involuntary unemployment; and changes in technological externalities affecting producers. There are other cases where changes in NNP and welfare are not positively correlated. Included here are changes in real costs of non‐included goods for which demand is elastic and changes in technological externalities imposed on consumers.
THE VALUATION OF NONMARKET ACTIVITIES IN INCOME ACCOUNTING
Authors: Peskin Henry M. , Peskin Janice
Published: March 2005

Expanding a conventional national accounting framework in order to include activities that are not produced or consumed via ordinary markets requires the accountant to adopt some procedure for assigning unit values to these activities. Often, as is the case with governmental services, unit values are equated with unit costs of production.

This paper argues that the appropriate valuation generally differs depending on whether the activity is viewed from the perspective of the producer, the consumer, or society. The theoretical justification for this position is developed first for the case of nonmarketed environmental services and then for in‐kind governmental transfers.

Rather than choosing a single unit value, the paper argues for and outlines an accounting system that will permit the simultaneous adoption of more than one valuation. Techniques for implementing the system for the environment and for in‐kind transfers are discussed.

Finally, drawing on the experience of the authors, the paper argues for the importance of developing data sets with more than one valuation. The authors claim that the effort to implement the system has generated valuable ancillary data sets even though data limitations and unresolved methodological questions have precluded complete implementation.
THE HOUSEHOLD DISTRIBUTION OF GOVERNMENT SERVICES FOR AGRICULTURE AND EDUCATION IN PENINSULAR MALAYSIA IN 1974
Authors: Meerman Jacob
Published: March 2005

The paper reports on several results from a comprehensive study of the household incidence of public expenditure in Peninsular Malaysia in 1974. The results for education show a pro‐poor distribution of expenditure when measured as a share of household income. Using however the criterion of each according to his needs (that is the number of school‐age children per household) reverses this outcome. In agriculture, because of the importance of land settlement, benefits from public expenditure distribute predominantly in favor of the poor.

The research differs from the usual study of this kind in that individual government outputs such as school years, or fertilizer loans, were defined, and in the case of education their unit costs estimated and their distribution across households measured. In the case of education, both the costs of services from capital and the households’ out‐of‐pocket educational costs were added to the current subsidies. As one consequence, it was seen that total expenditure for education in Malaysia exceeds one‐eighth of GNP, nearly double the conventional estimate. Equally important, for the poor the burden of private costs for education even within a public system were seen to be very high.

The contrasts between the strong results for education, a broad based social service, and the less conclusive results for agriculture, an economic service which impacts directly on production, were instructive in suggesting the limitations of such research in measuring the effects of government budget activity on distribution.
A NEW STAGE IN THE ACTIVITIES O F THE COUNCIL FOR MUTUAL ECONOMIC ASSISTANCE IN THE FIELD O F INTERNATIONAL COMPARISONS OF NATIONAL PRODUCT
Authors: Ivanov Y. , Ryzhov I.
Published: March 2005

This article reports on the plans of the member countries of the Council for Mutual Economic Assistance (CMEA) in the area of the purchasing power parity comparisons of national product and similar aggregates. A series of comparisons of the U.S.S.R. with other individual member countries was made for 1959,1966, and 1973. A new series will be undertaken for the year 1978. The scope of the program will be expanded to cover several new aggregates, including productivity concepts and total consumption of the population. The article discusses the conceptual and methodological problems and plans. Among other matters, attention is being given to the possibility of reducing the number of specifications priced, without sacrificing accuracy.
TRACING PRICE CHANGES THROUGH STAGES OF PRODUCTION: AUSTRALIA, 1968 TO 19771
Authors: Haig B. D. , Wood Margaret P.
Published: March 2005

This study is concerned with an effort to analyze changes in costs and prices in the Australian economy by tracing the effects of changes in wages and import prices through the stages of production, using a disaggregated input‐output model with lags. The object of constructing the model was to improve, by introducing lags, the accuracy of predictions of the effect of cost changes on prices, and to show the lag structures. Data problems encountered are discussed, and the need for integration of price statistics to enhance their usefulness for analyses such as this is emphasized. Concepts and sources of data are discussed in some detail in an appendix.
PRICE ANALYSIS AND A SYSTEM OF PRICE STATISTICS
Authors: Boer S. de , Van Tuinen H. K.
Published: March 2005

For some considerable time the interest in price statistics has mainly been focused on their use as “intermediate goods”. The requirements of a system of price index numbers which have to be established in this connection are largely in the field of statistical coordination (integration of statistics on quantities, values and prices).

Recently the inflation problem has given rise to an increased interest in price statistics as “final goods”. A meaningful analysis of inflation will devote attention to the relation between input prices and output prices. In this article several versions of an analysis of prices of final demand categories based on an ordinary Leontief input‐output scheme are presented and the needs for price statistics are discussed. In fact a self‐contained system of price statistics emerges from the price analysis.

There is a difference in the nature of the price index numbers required in compiling input‐output tables in constant prices (Paasche) and that in the case of price analysis (Laspeyres). However the need for price observation runs largely parallel because in both cases the same detailed information on price developments will probably be used.

Price analysis gives the possibility of a step‐by‐step approach in building up a system of price index numbers.
A REVIEW OF SELECTED ASPECTS OF THE UNITED NATIONS SYSTEM OF NATIONAL ACCOUNTS IN THE LIGHT OF COUNTRIES’ EXPERIENCES*
Authors: van Tongeren Jan W.
Published: March 2005

A review of the United Nations System of National Accounts and its implementation by countries is presently being conducted at the United Nations Statistical Office. This article presents a personal and selective account by the author of the results of that review and its consequences for the present structure of the SNA.

Information is included on the level of response by countries for the tables of the SNA national accounts questionnaire. It shows that this response is at present sparce, except for the tables on GDP by end use, cost structure and kind of economic activity.

On the more detailed level the feasibility of introducing integrated sector accounts into the system has been examined and different approaches compared. Country practices suggest that one way of facilitating the introduction of such accounts would be to eliminate one essential feature of the dual classification of the SNA, i.e., the distinction between quasi‐corporate and other unincorporated enterprises. Other modifications of the SNA structure implied below are the introduction on a limited scale of articulation of transactions, the inclusion of additional aggregate income and balancing items, a reallocation of data between the main accounts and the supporting tables, and a better integration of the SNA matrix with the accounts and tables of the system. A reduction of the present number of independent classifications in the SNA is suggested, based on links between categories of different classifications that are assumed in country responses to the questionnaire. A suggestion is made for a uniform valuation of goods and services and income flows, to replace the present complex valuation guidelines on approximate basic and factor values and producers’ prices.
THE SIZE DISTRIBUTION OF INCOME DURING INFLATION
Authors: Minarik Joseph J.
Published: March 2005

This paper analyzes the effects of inflation on the size distribution of income, making use of a microsimulation model. It goes beyond earlier analyses not only in the use of microdata but also in the types of inflation modeled. Two different income concepts are used, one the money income concept of the U.S. Census Bureau and the second, called Accrued Comprehensive Income, based on the concept of income as consumption plus the change in net worth. The results of the simulation inflations are presented graphically, as the ratio of real income with inflation to real income without, by income class. The analysis concludes that the income concept chosen is crucially important. While low income households suffer modest losses and middle income households are largely unaffected, whatever income concept is used, the effects on upper income households are extremely sensitive. With a simple money income concept, the well‐to‐do appear to benefit from inflation but a broader concept reverses this effect. A policy to negate the distributional effect of inflation would benefit primarily the upper income households. Similarly, macroeconomic policies designed to reduce inflation at the price of slower growth and greater unemployment would not aid lower income groups to a significant degree.
SOCIAL CHALLENGES TO ECONOMIC ACCOUNTING AND ECONOMIC CHALLENGES TO SOCIAL ACCOUNTING
Authors: Moss Milton
Published: March 2005

The question addressed in this paper is: Why can't we have a good measuring rod of the economic and social performance of our society? The answers are basically positive but lie mostly in the direction of (1) avoiding simplistic solutions such as turning the national income accounts into a measure of social welfare and (2) providing the elements of an information strategy to obtain such a measure or more accurately such a set of measures.

The proposed information strategy highlights five activities: (1) the presentation and analysis of welfare outcomes, an activity which is analogous to but broader than “social indicators”; (2) social accounting which includes economic accounting, demographic accounting, and time‐use accounting; (3) model building and operation which, unlike accounting, are concerned with behavioral or causal relationships used to explain and project welfare outcomes; (4) hypothesis testing to develop new insights into economic and social behavior; and finally (5) the building and maintenance of a data base required for carrying on the aforementioned four activities.
RUSSIAN LIVING STANDARDS DURING THE INDUSTRIALIZATION ERA, 1885–1913*
Authors: Gregory Paul R.
Published: March 2005

In this paper, I have examined the relative growth rates of personal consumption, government consumption, and national income in Russia from 1885–1913 and have contrasted them with the “European” model (derived from the U.K. and German experience). Two hypotheses of the conventional model of Russian industrialization were tested: the retarded growth of personal consumption and the accelerated growth of government consumption and investment (relative to the European model) and the growing Europeanization of Russian growth after 1906. The estimates of personal consumption and government consumption failed to sustain either hypothesis. In fact, the reverse hypotheses appear to be more plausible. The lack of data on investment prevented the testing of the investment hypothesis, but the limited evidence which is available does not point to an extraordinary growth of investment. As a final experiment, the combined growth rates of personal and government consumption were compared with a revision of Goldsmith's national income estimates. They were shown to provide strong support for the accuracy of the revision of Goldsmith's estimates.
EFFECT OF PUBLIC EXPENDITURES ON INCOME DISTRIBUTION WITH SPECIAL REFERENCE TO VENEZUELA
Authors: de Ferran L. Urdaneta
Published: March 2005

Taxes as well as government expenditures tend to transform income distribution; the higher they are in relation to GDP, the higher their potential influence appears. It is easier to trace the incidence of taxes than that of expenditures and studies of effects of expenditures on income distribution are not frequent. Changes of fiscal legislation and deficiencies in reporting systems and statistics frequently found in developing countries complicate the task still further.

An investigation of this type in a developing country has to face a poorly developed data base and take advantage of different and dispersed sources of information.

This paper presents the methodology used for estimating the influence of government expenditures a n income distribution in the case of Venezuela. Although the incidence of fiscal activities on income distribution in Venezuela might not necessarily be the same as in other countries, Venezuelan sources of information are not very different from those existing in other countries of similar level of economic and statistical development and procedures used could appropriately be adapted to other countries.
THE MEASUREMENT OF REAL OUTPUT OF PUBLIC SECTOR SERVICES
Authors: Hjerppe Reino T.
Published: March 2005

Recently there has been discussion concerning the renewal of the volume measurements of public sector services. This renewal has been proposed e.g. in the recent United Nations Draft Manual on Public Sector Statistics. In the present paper we discuss some theoretical and practical problems connected with this renewal. According to some preliminary calculations concerning the Finnish educational sector, the new methodology might lead to a considerable revision of figures of output and labour productivity in the public sector. The revisions are of such a quantity that they might cause significant changes in the measurement of the volume of the total gross domestic product. This is a fact which may still require reflection before the new methodology is generally introduced, even though the revisions as such may be highly desirable from several aspects.
MEASURES OF TOTAL HOUSEHOLD CONSUMPTION
Authors: Saunders Christopher
Published: March 2005

By expenditure on education, health, housing and other public services, governments provide many goods and services which are alternatives to, or additional to, household expenditure on consumption. In most Western national accounts, the two forms of consumption are rigidly separated. Yet the combination of the two–the concept of total household consumption–has obvious importance for the measurement and comparison of living standards and for the formulation and analysis of policy. This concept is recommended as an additional aggregate in the revised SNA. It is displayed in the UN International Comparison Project (ICP). It is used as a major aggregate (“total consumption of the population”), although hitherto generally excluding nonmaterial services, in the Material Product System. Yet it is rarely shown explicitly in Western national accounts. One reason is the slow progress in the analysis by purpose of government expenditure.

This paper shows how far figures of total household consumption, and of its division between collective and private consumption, can in fact be derived, for the advanced countries, from the data provided to the UN Yearbook of National Accounts, supplemented b y the ICP. The results show first the wide national variations in the relation between the two forms of consumption but, secondly, the gaps in information on this crucially important topic. The relation between direct government expenditure for collective consumption and transfer payments to households (“social income”) is also examined. High and low levels of these two forms of State support to consumption reinforce each other almost as often as they offset each other. But, again, the data provided by national accounting statistics are very incomplete.

This paper was prepared for the 16th General Conference of the IARIW, August 1979.
THE DEVELOPMENT OF THE DISTRIBUTION OF WEALTH IN SWEDEN
Authors: Spånt Roland
Published: March 2005

This paper is concerned with the distribution of wealth in Sweden in 1975 and its development during the period 1920–75. The paper is based on a large study on wealth undertaken for the Swedish Commission on Wage‐Earners and Capital Formation. The first report from this study was presented in 1979 as a book in Swedish: Roland Spånt, Den svenska förmögenhetsfördelningens utveckling (The Development of the Distribution of Wealth in Sweden), SOU 1979:9. That first report will also be published in English. Prior to that the main results can be found in this paper.

During 1980–81 we intend to publish specific reports on the distribution of shareholding, the effects of inflation, the development of the distribution of wealth 1975–78, the importance of pension rights etc.
CONCEPTS AND PROBLEMS OF CONSISTENCY IN TERMS‐OF‐TRADE ANALYSIS*
Authors: ØLgaard Anders
Published: March 2005

The debate on how to deal with changes of relative prices in national accounts has, so far, remained inconclusive, especially with regard to the question of how to measure gains from changes of terms of trade. Keeping the experiences of the 1970s in mind (i.e. substantial changes of relative prices sparked off by increased oil prices), this state of affairs is not considered tenable.

On this background, the paper takes up the old debate on how to deflate figures of domestic product, total as well as by industries. It tries to argue that deflated figures should be presented not only as real product figures by industries (using the double deflation method), but also as real income figures, obtained by deflating the current‐prices figures of a certain year by the same general price index. When this is done according to procedures spelled out in detail, gains/losses from changes of the terms of trade in foreign trade will show up as an integral part of the framework.

In the paper, special attention is given to the concept of industry terms of trade. On the basis of simplifying assumptions (which are, however, relaxed in the final part of the paper), it is shown how the ratio of real income divided by real product of a certain industry will be proportionate to the terms of trade of the industry concerned, when the latter concept is defined in the appropriate way. Furthermore, the sum of the industry gains/losses from changes of their terms of trade will be equal to the gain/loss of the economy taken as a whole from changes of the terms of trade in foreign trade.
AN EXAMPLE OF THE USE OF STATISTICAL MATCHING IN THE ESTIMATION AND ANALYSIS OF THE SIZE DISTRIBUTION OF INCOME*
Authors: Radner Daniel B.
Published: March 2005

This paper focuses on the use of statistical matching in the estimation and analysis of the size distribution of family unit personal income. The paper begins with a brief discussion of data on the size distribution of income in the U.S. and their limitations. Several methods of improving or augmenting those data are described, and earlier examples of statistical matching for that purpose are mentioned. A brief summary of the types of statistical matching methods which have been used is also presented. Then a recent example of statistical matching carried out at the Office of Research and Statistics, Social Security Administration, is described, and the effects on the size distribution of adjusting and augmenting the initial data using the statistically matched data from that example are shown. Material relating to the accuracy of that statistical match is presented in the appendix.
L'EXPERIENCE FRANÇAISE DE COMPTABILITE PATRIMONIALE
Authors: Benedetti Alain , Consolo Georges , et Fouquet Annie
Published: March 2005

This article presents the results of the first French efforts to assemble information on the assets and liabilities of the different economic agents. The estimates cover the five‐year period 1972–76, with complete balance sheets for the end of 1971, 1972, and 1976. The experimental efforts showed that estimation was feasible. It was possible to bring together the varied, often dispersed, and rarely consistent existing information into an integrated body of aggregates adapted to macroeconomic analysis. The report stresses the importance of articulating the wealth accounts logically with the flow accounts, into a complete, closed, and consistent whole in which the theoretical objectives are well specified. It also points out the limitations of the approach, stemming primarily from the state of the basic statistics relating to wealth.
THE DISTRIBUTION OF PUBLIC EXPENDITURES AND TAXES AMONG HOUSEHOLDS IN THE UNITED KINGDOM*
Authors: O'Higgins Michael , Ruggles Patricia
Published: March 2005

This paper presents an analysis of the distributive impact of public expenditures and taxes in the United Kingdom. The analysis uses household level microdata from the 1971 Family Expenditure Survey, with tax and expenditure aggregates drawn from the national accounts.

The analysis is the first to allocate all taxes and public expenditures for the United Kingdom, and the results are compared to those from the more restricted analyses carried out by the U.K. Central Statistical Office. Results are presented for individual taxes and benefits as well as for overall net benefits and they describe distributional effects with respect to income class, household size, number of earners and housing tenure.

A final section of the paper compares the results to those from a similar analysis for the United States which were reported in the previous issue of this review.
NEW INSIGHTS INTO THE STRUCTURE OF THE WORLD ECONOMY*
Authors: Kravis Irving B. , Heston Alan , Summers Robert
Published: March 2005

The United Nations' newly completed study of purchasing power parities covering 34 countries varied in region, income level, and form of economic organization shows the systematic differences between the usual view of the structure of the world economy arising out of international comparisons based upon foreign exchange rate conversions and the structure one sees when actual prices are available.

The real per capita GDP of developing countries is understated relative to developed countries when exchange rates are used in converting countries' national income accounts to a common currency, with the degree of understatement for any two countries being inversely related to the per capita income difference between them. The reason for this is that relative prices in the non‐traded goods sector are lower relative to traded goods prices in low income countries. The systematic pattern observed in the 1975 data of the 34 countries has been extrapolated over time and space to get estimates of GDP for other years and countries.

In the absence of detailed price data, the real shares of final expenditures devoted to particular components of the total can only be estimated as the proportion of own currency total expenditure devoted to the components. The observed differences in the pattern of prices of poor countries relative to rich for different components makes this clearly wrong for international comparisons, and in systematic ways. For example, (i) the relative price of services compared with commodities in poor countries is lower than in rich; so the apparent tendency of the share of services to rise as a country's income rises disappears when real quantities are considered; similarly, (ii) the relative price of capital goods is greater in poor countries compared with rich ones, so the difference in investment ratios out of GDP between rich and poor countries is understated.
COMPARATIVE ESTIMATES OF THE VALUE OF HOUSEHOLD WORK IN THE UNITED STATES FOR 1976*
Authors: Murphy Martin
Published: March 2005

This paper uses five valuation methods to derive aggregate and per person estimates of the value of household work in the United States. Two general questions are posed: (1) what is the relationship between the aggregate estimates and the valuation method used, and (2) how do per person estimates vary by sex and earnings?

The main observations of the paper are as follows: First, the aggregate value of household work is sizable regardless of the valuation method used. Second, aggregate estimates are extremely sensitive to the method of valuation. For example, the highest estimate is $475 billion greater than the lowest estimate. Third, contrary to earlier findings, opportunity cost valuation methods generally produce significantly higher estimates than market cost valuation methods. Fourth, per person estimates vary significantly by sex and level of earnings across valuation methods. Generally, market cost estimates.
PROPOSALS FOR A HOMOGENEOUS TREATMENT OF HEALTH EXPENDITURES IN THE NATIONAL ACCOUNTS*
Authors: Foulon A.
Published: March 2005

International comparisons always raise difficult problems, more especially when they deal with services which are jointly financed by households and government in varying shares with varying procedures in each country. This is obvious in the case of health where the area itself, the principles of economic analysis and the UN method of National Accounting appear to be either vague or unwieldy. Before any proposal it is necessary to review what is involved in the concept of service and the possibility of delimiting the health field inside which economic measures are feasible. Then using the SNA concept and with the help of six interdependent tables we propose two aggregates: the National Medical Consumption and the Current National Expenditure on health. The detailed and harmonized breakdowns of these global results make it possible to compare the structures of values, prices and quantities on an international base.