IV. Household final consumption
expenditure and gross capital
Vu Quang Viet
Household income and expenditure survey
and income in national accounts
• Employers’ imputed social contribution (calculated by
statisticians and unknown to employees) particularly
for the government sector to guarantee that
contribution is adequate for the government to pay
future social benefits to current employees in cases of
defined benefit scheme;
• Correction by national accountants for fisim in interest
payable and interest receivable and insurance service
charges by national accountants in pension and
insurance schemes in order to distinguish between
service charges (production) and income flows;
• Imputation of services from owner-occupied housing, a
purely national account concept.
COE receivable by household sector
Compensation of Household
employees (COE) survey
Conceptually similar, they are
income receivable by
COE ð COE based on establishment
survey must be adjusted to
exclude COE payable to
abroad and include those
earned from abroad.
Must be adjusted to include
Employers' social Less reliable imputed employers’ social
Mixed income receivable by household sector
Mixed income National accounts
Mixed income from May be For major crops, estimate output, IC
agricultural activities less and mixed income by land use
(from sale and own reliable and per yield, but for minor
consumption except than backyard activities, national
owner-occupied info accountants have to rely on
housing) from household surveys
Residential rental income Rely on household survey for this
and other rental item or production statistics and
income less cost real estate sector.
Mixed income from other Rely on hH survey such as own-
activities production of goods at home,
Property income and current transfers
Mixed income National accounts
Property income May rely on banking statistics and
government finance statistics
Income taxes Government finance statistics
Social transfers Government finance statistics,
pension and insurance statistics
Analysis of country data
• Graphs show percentages of difference (SNA value – Survey
• In general, SNA values are significantly higher than survey
values, except mixed income.
• COE by 20-45%, Wages & salaries 5-25%. Given wages and
salaries are more reliable, focus should be on them, while
social contributions may be estimated from administrative
• Mixed income, exept Thailand, is generally over-estimated by
HS, varies from -60% to 20%.
• Property and current transfers are extremely underestimated
• PCE are also underestimated by HS. Differences are at least
40% Even PCE of food are at least 30%.
• For PCE, Macao and Mongolia are exceptions, why?
• Gross capital formation is overestimated in Indonesia.
Compensation of employees
Social contributions, benefits &
other current transfers
Final consumption expenditure &
Purchased in the market
Food, manufactured goods consumption
Lessons drawn from county data
• From the data supplied by the countries
participating in this workshop, it is clear that for
national accounts purposes:
– Data on household final consumption obtained by
household survey is not comprehensive enough for
national account purposes.
– Data on compensation of employees is more
comprehensive, but still need further analysis for
• It is thus important that GDP should be compiled
using simultaneously by three approaches
through the use of the commodity flow
What to do about the discrepancy
problem between HH surveys and
National Account (NA)?
• Is the trend over time in HH survey the same as
• Do you use survey results in any way in NA
• Or do you estimate GDP by final expenditure
mainly by residual approach? Or supporting by
commodity flow approach?
• Was there any improvement of HH survey over
time in your country experiences?