26 October Chapter 7: Balancing SUT

1. Announcement of DSA payment

2. Due to some technical problems, the session started a bit late.

3. The Rapporteur from the previous day provided for a summary of the proceedings of the previous day.

4. Presentations (ECA and Discussants)

Comments:

 RAS not easily accessible

 For Manual Balancing: List some key driving factors to give some orientation to the SUT compiler.

 Chapter well written

 SUT very important

o Calculation and checking of NS data

o Serve as an input for the database used for Economic Model

 Use of VAT for consumption of advertising services by households not important. VAT to estimate household consumption may be wrong because of informal sector.

 Others say that advertising is relevant

 Need to have consistent data from commodity flow for IC and IC from other sources for a given product

 Improvement in SUT can also be the result of other accounts such as IEA

 RAS method can change the coefficients

 Balancing of SUT to be done at detail level

 Possibility of doing SUT balancing in ERETES for Benchmark and current year both at current and constant year. Also data for n-1 help SUT balance in year n

Questions and improvements:

 Advantages and disadvantages of RAS

 Bias resulting from RAS  Provide some indicative sources of data to help the SUT compiler

 To emphasis that Bookish knowledge will not help in SUT balancing, as well as the handbook should be used as a guideline.

 Give an overall outline for the chapter

 Stress the following:

o Large inconsistencies require more attention

o Need to check data sources carefully

o Discussion of data among experts in the concerned area

 Provide a chronology of steps for manual balancing

 Give the assumptions on uses before supply

 Step by step description of RAS method

 Consider mentioning other methods available for Automatic Balancing such as Stone et al algorithm

 A wish to have a well balanced SUT for compiling SAM and CGE models for the conduct of policy analysis just as the GTAP database (Global Trade Analysis Project)

5. Reply

 It is possible to lay down some set of rules for SUT balancing, such as data sources, expert opinion

 Require at least 2 countries to provide practical examples of SUT balancing

 Comments of Simpson by mail

o For the clothing example: Govt and NPiSH cannot have Garments as final consumption

o The problem of estimating the consumption of advertising services by households based on VAT data available only at an aggregate level.

o RAS method depends on Matrix algebra. To use example given by Steve

o Worked example on RAS not clear show the multipliers

o Techniques other than RAS: UN manual on I/O Table. Comparison of RAS with other methods> RAS gave best results  Do manual balancing first then automatic

 Also remember that RAS method change coefficient

 Importance of having cross classification industries and institutional sectors

 Concerning the RAS method only first steps shown in example

 One chapter on using ERETES

 To have actual balancing examples from 2 countries (may be Cameroon and Burkina Faso)

Chapter 9: GDP exhaustiveness

Comments

 Chapter very informative

 Topic of great relevance

 Use of labour input method very useful and practical

 Too much stress on Informal sector when there are other reasons for non exhaustiveness

 GDP Exhaustiveness Quest by AfDB, difficult to fill

 Difficult to be understood by beginners, as it seems to be a standalone chapter

 Fill of GDP exhaustiveness questionnaire can be addressed in another forum

 Add examples for N1 to N7

 Advantages and disadvantages of direct and indirect measurement for informal sector

 Difference in treatment between the 1993SNA and 2008 SNA

 Stress on non-exhaustiveness other than informal

 Some adjustments methods have been mentioned in other sectors. Thus reference can be made to those sections Reply

 Chapter covers informal sector since it is the most important part. Also the labour input method can be used for other reasons for non-exhaustiveness

 It is very difficult to directly survey the informal sector, rather the indirect method is more suitable.

 No much difference in 1993SNA and 2008SNA. No mention wasx made in 1993SNA, just the 15 ICLS and put into research agenda. SNA2008, no much guideline, except the OECD manual on Non-Observed Economy concerning the Labour Input Method

 Some inputs from the Working group on informal sector can be added to the handbook

Chapter 10: Minimum Data Requirement for SUT

Comments

 Very interesting chapter, all sources explained

 Statistical Capacity building in SUT

 Sharing of Country experiences on UNECA website

 Training in informal sector statistics compilation

 Advocacy by government for carrying out economic surveys

 NA to become popular with SUT. NA dry subject but SUT can answer to many questions.

 International org to communicate more (E.g FAO for Agriculture, UNIDO for IRIS etc)

 Can use Income tax data in some cases, and thus enterprise survey not required.

 Data sources to be classified by industries

 VAT use to be emphasized

 Numerical example in the use of neighboring country data used to be included  Some say Chapter to be beginning of handbook, others stay where it is since chapter 1 to 9 seen as building blocks

 Conducting of specific survey for SUT

 Indicators need for Trade and Transport margin

 Challenges in reconciling administrative data with standardized survey and census data

 Non willingness of African countries to carry out Labour Force or Informal sector surveys

 Livestock Survey very irregular. Product disaggregation difficult

 Illegal border trade. No effort for import but for export only since it helps to estimate domestic production.

 To add a table of abbreviations

 Knowledge transfer to countries for the compilation of PPPs

 Income approach for GDP not clear in SUT

 Adapt the recommendation of Eurostat manual for Trade and Transport margin

 VAT data can be use for the formal economy, but not for informal or other sectors that do not pay VAT (e.g Govt)

 Separate sources for each industry can be given

 No need for special survey for SUT

 Can do sample survey of establishments within each activity group (e,g China,Vietnam) as well as for Government departments

 Sequencing of chapters to be done on Friday

 General issues not specifically concerning the handbook, ECA to address (e.g Capacity Building)

 List of Abbreviations ok.

 PPP calculated to Regional level only. However, can use 2005 data and include if possible

 Recommendation of Eurostat manual for Trade and Transport margin too complicated

Chapter 11: Updating of SUT 1. Presentations (ECA and Discussants)

Comments

 Chapter well written (brief and clear)

 Give a hint on the quality of SUT

 Any minimum requirement for RAS

 Are SUT updated with new data?

 Updated SUT used internally for NA or policy making?

 Clarification on Automatic update. Give some mathematical background or numerical example

 How long can we update benchmark SUT?

 Any situation where RAS fail. Modified RAS

 A simple example of RAS will be included.

 Benchmark every 5 years ok.

 Status of Updated SUT is the same as the benchmark one

 Modified RAS preferred to RAS as it is advisable to fill in as many cells as possible then use RAS. If new industries comes in, this has to be done manually

 Manual updating first then automatic

 Updated SUT can be used to produce NA estimates in a better way