task force unece montella

The household production in National AccountsItaly’s study

Monica Montella

Task Force UNECE- Geneva, november 26-27

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SummarySummary

Satellite Account System by SNA08Satellite Account System by SNA08

The The household production in household production in National Accounts National Accounts (SNA)/(ESA)(SNA)/(ESA)

Estimation method to be usedEstimation method to be used

The sequence of accounts including The sequence of accounts including household household production production

Open questionsOpen questions


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Satellite Account System by SNA08Satellite Account System by SNA08Task Force UNECE- Geneva, november 26-27

A further and more extensive form of flexibility is A further and more extensive form of flexibility is that of a satellite account. As its name indicates, it is that of a satellite account. As its name indicates, it is linked to, but distinct from, the central system. linked to, but distinct from, the central system.

Many satellite accounts are possible but, though Many satellite accounts are possible but, though each is consistent with the central system, they may each is consistent with the central system, they may not always be consistent with each other.not always be consistent with each other.

Satellite accounts incorporate the concepts of the Satellite accounts incorporate the concepts of the central framework of national economic accounts, central framework of national economic accounts, enhancing analytical skillsenhancing analytical skills. .

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Broadly speaking, Broadly speaking, there are two types there are two types of satellite accounts. of satellite accounts. One type One type involves some rearrangement of central involves some rearrangement of central classifications and the possible introduction of classifications and the possible introduction of complementary elements. Such satellite accounts mostly complementary elements. Such satellite accounts mostly cover accounts specific to given fields such as education, cover accounts specific to given fields such as education, tourism and environmental protection expenditures and may tourism and environmental protection expenditures and may be seen as an extension of the key sector accounts just be seen as an extension of the key sector accounts just referred to. They may involve some differences from the referred to. They may involve some differences from the central system, such as an alternative treatment of ancillary central system, such as an alternative treatment of ancillary activities, but they do not change the underlying concepts of activities, but they do not change the underlying concepts of the SNA in a fundamental way (the SNA in a fundamental way (SNA08 cfr: 29.5SNA08 cfr: 29.5).).

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The second type The second type of satellite analysis is mainly based on of satellite analysis is mainly based on concepts that are alternatives to those of the SNA. These concepts that are alternatives to those of the SNA. These include a different production boundary, an enlarged include a different production boundary, an enlarged concept of consumption or capital formation, an extension concept of consumption or capital formation, an extension of the scope of assets, and so on. Often a number of of the scope of assets, and so on. Often a number of alternative concepts may be used at the same time. This alternative concepts may be used at the same time. This second type of analysis may involve, like the first, changes second type of analysis may involve, like the first, changes in classifications, but in the second type the main emphasis in classifications, but in the second type the main emphasis is on the alternative concepts. Using those alternative is on the alternative concepts. Using those alternative concepts may give rise to partial complementary concepts may give rise to partial complementary aggregates, the purpose of which is to supplement the aggregates, the purpose of which is to supplement the central system (central system (SNA08 cfr: 29.6)SNA08 cfr: 29.6)..

6Satellite Account System by SNA08Satellite Account System by SNA08


Satellite accounts, especially of the second sort, allow Satellite accounts, especially of the second sort, allow experimentation with new concepts and methodologies, experimentation with new concepts and methodologies, with a much wider degree of freedom than is possible with a much wider degree of freedom than is possible within the central systemwithin the central system ( (SNA08 cfr: 29.8)SNA08 cfr: 29.8)

There is no ambiguity in the central framework of the SNA; unpaid household services are excluded from the production boundary. However, in a satellite account it is perfectly possible to extend the production boundary so that such services may be included (SNA08 cfr: 29.146)SNA08 cfr: 29.146).

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There is fairly widespread agreement that the way in which to start measuring household services for own consumption is by means of measuring the amount of time spent on them. There is increasing interest in conducting time use surveys that make such information available. Time use surveys, however, are not unambiguous. There is the question of multitasking. For example, it is possible for somebody to prepare a meal, keep an eye on a small child and help an older child with their homework all at the same time. Should the total amount of time be divided by three or should each activity count the whole amount of time spent? (SNA08 cfr: 29.147) SNA08 cfr: 29.147)

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The basic question in valuing the time spent on household services is whether to use the opportunity cost of the person performing the task or a comparator cost. Both of these present difficulties. The opportunity cost seems appealing because application of economic theory suggests that somebody capable of earning more money than the comparator would indeed earn the extra money and pay somebody else to undertake the household tasks. But this is clearly not what happens in practice. Comparator costs may be difficult to come by and may be unrealistic (SNA08 cfr: 29.150)SNA08 cfr: 29.150).

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There are two approaches that could be taken in a satellite account. The first is to adopt an alternative treatment for consumer durables at the same time as valuing unpaid household production. The other is to leave unpaid household production excluded from the production boundary but consider replacing consumer durables by an estimate of the services they provide. Treating consumer durables as assets is also of interest in the context of measuring household saving and wealth (SNA08 cfr: 29.155)SNA08 cfr: 29.155).

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The question of valuing volunteer labour is the same as that of valuing the time spent on unpaid household activities and the same alternatives are available. If voluntary labour were valued, the following accounting entries would be necessary: a. compensation of employees of the unit employing the volunteer labour; b. income for the household to which the volunteer belongs; c. a transfer of the same amount by the volunteer to the employing unit; d. final consumption expenditure of the employing unit; e. almost always social transfers in kind. This is the same as the way it is recommended that labour inputs to collective construction projects are measured (SNA08 cfr: 29.160SNA08 cfr: 29.160).

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Why a household satellite accounts?Why a household satellite accounts?Task Force UNECE- Geneva, november 26-27

The purpose of HSA is to focus attention on the part of The purpose of HSA is to focus attention on the part of production that is not defined in the System of National production that is not defined in the System of National Accounts.Accounts.

The whole production activities carried out by families, with The whole production activities carried out by families, with their own capital and the unpaid work of their members for their own capital and the unpaid work of their members for the process of production of goods and services for own the process of production of goods and services for own use and not intended for sale is the household economy.use and not intended for sale is the household economy.

The definition of household production expands the The definition of household production expands the concept of production and the productive role of families is concept of production and the productive role of families is recognized.recognized.

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The concept of household production more internationally The concept of household production more internationally accredited is promoted by the OECD (1995), that the production accredited is promoted by the OECD (1995), that the production of families is embodied in goods and services produced within of families is embodied in goods and services produced within the household by its members (who consume them), combining the household by its members (who consume them), combining their unpaid work with consumer durables and non durables their unpaid work with consumer durables and non durables purchased in the market.purchased in the market.

In addition to the production of market which provides a In addition to the production of market which provides a framework of household production, the boundaries of the framework of household production, the boundaries of the production of National Accounts will change, the households are production of National Accounts will change, the households are not seen only as consumers but as the units involved in the not seen only as consumers but as the units involved in the production process. production process.

Besides the account by institutional sector of the families market, Besides the account by institutional sector of the families market, there is a new satellite account, the "there is a new satellite account, the "informal household informal household production accountproduction account".".

Household production definitionHousehold production definition

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Household production definitionHousehold production definition

The OECD definition (1995) of household production is now internationally accepted “The term household production is used to refer to goods and services produced within the household by its members by combining their unpaid labor with purchases of durable and non-durable consumption goods”. The household production must not be a market transaction; and this is called non-market production; producing non-market includes:• unpaid work;• family care;• capital formation in own account.The concept of production in general is important and complex, focuses on the production of market and non-market as defined in the SNA (System of National Accounts) and non-market production is not included in SNA.


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ESA 2010 ESA 2010 22.89–22.95 Household production includes Household production includes only services that can be delegated to someone other only services that can be delegated to someone other than the person benefiting from it (third party-principle).than the person benefiting from it (third party-principle).

ESA 2010 ESA 2010 22.89–22.95 Household production includes Household production includes only services that can be delegated to someone other only services that can be delegated to someone other than the person benefiting from it (third party-principle).than the person benefiting from it (third party-principle).

Household satellite account system Household satellite account system by ESA 2010by ESA 2010

The output and value added of household production can be valued using an The output and value added of household production can be valued using an input or an output method.input or an output method.The output method The output method implies that household production is valued at market implies that household production is valued at market equivalent prices (i.e. the value observed for similar services explicitly sold on equivalent prices (i.e. the value observed for similar services explicitly sold on the market). the market). The input method The input method it is crucial what valuation is chosen for the labour inputs, it is crucial what valuation is chosen for the labour inputs, e.g. wages including or excluding social security contributions and what e.g. wages including or excluding social security contributions and what reference group should be chosen (average wages, wages of specialist reference group should be chosen (average wages, wages of specialist workers or wages of generalist housekeepers).workers or wages of generalist housekeepers).

The output and value added of household production can be valued using an The output and value added of household production can be valued using an input or an output method.input or an output method.The output method The output method implies that household production is valued at market implies that household production is valued at market equivalent prices (i.e. the value observed for similar services explicitly sold on equivalent prices (i.e. the value observed for similar services explicitly sold on the market). the market). The input method The input method it is crucial what valuation is chosen for the labour inputs, it is crucial what valuation is chosen for the labour inputs, e.g. wages including or excluding social security contributions and what e.g. wages including or excluding social security contributions and what reference group should be chosen (average wages, wages of specialist reference group should be chosen (average wages, wages of specialist workers or wages of generalist housekeepers).workers or wages of generalist housekeepers).

Different principal functions can be distinguished: housing, nutrition, clothing, Different principal functions can be distinguished: housing, nutrition, clothing, care (children, adults and pets) and volunteer work. In the present work we care (children, adults and pets) and volunteer work. In the present work we have been used the following functions:have been used the following functions:accommodation / lodging, meals and nutrition, clothing and laundry services, accommodation / lodging, meals and nutrition, clothing and laundry services, assistance and care to children and the elderly, volunteering / informal help; assistance and care to children and the elderly, volunteering / informal help; transport servicestransport services..

Different principal functions can be distinguished: housing, nutrition, clothing, Different principal functions can be distinguished: housing, nutrition, clothing, care (children, adults and pets) and volunteer work. In the present work we care (children, adults and pets) and volunteer work. In the present work we have been used the following functions:have been used the following functions:accommodation / lodging, meals and nutrition, clothing and laundry services, accommodation / lodging, meals and nutrition, clothing and laundry services, assistance and care to children and the elderly, volunteering / informal help; assistance and care to children and the elderly, volunteering / informal help; transport servicestransport services..


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EntireEntire EconomicEconomic ProductionProduction

SNA SNA marketmarketProductionProductionMarket output by units other than household for market transaction

SNA Non-market SNA Non-market Household Household productionproduction- Own-account production of goods; - Own-account construction of dwellings;- The own-account production of housing services by owner-occupiers;- Domestic and personal services produced by employing paid domestic staff;- Volunteer activities that result in goods (e.g. the construction of a church).

SNA Non-market SNA Non-market Household Household productionproduction- Own-account production of goods; - Own-account construction of dwellings;- The own-account production of housing services by owner-occupiers;- Domestic and personal services produced by employing paid domestic staff;- Volunteer activities that result in goods (e.g. the construction of a church).

NON-SNA Non-NON-SNA Non-market market Household Household productionproduction- NON SNAHousehold production → of which: own-account production of services (transport)→ Informal help to other households→ Volunteer work (services)

NON-SNA Non-NON-SNA Non-market market Household Household productionproduction- NON SNAHousehold production → of which: own-account production of services (transport)→ Informal help to other households→ Volunteer work (services)

Household satellite accountHousehold satellite account

SNASNAnon market non market ProductionProductionOther non market output units other than household

SNASNAnon market non market ProductionProductionOther non market output units other than household

SNASNAmarket market Household Household productionproduction

Goods and services produced in household units and supplied on the market to units other than their producer

SNASNAmarket market Household Household productionproduction

Goods and services produced in household units and supplied on the market to units other than their producer

Household productionHousehold productionHousehold productionHousehold productionNon-market Non-market Household productionHousehold productionNon-market Non-market Household productionHousehold production

Different units of Different units of householdhouseholdDifferent units of Different units of householdhousehold


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NON MARKET NON MARKET NON-SNA Household productionNON-SNA Household production

Household Production by functionsHousehold Production by functions

Main outputs / principal functions:- Providing housing /accommodation- Providing meals and nutrition- Providing clothing and laundry services- Providing care- Providing transport- Volunteer work and informal help


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Estimation method to be usedEstimation method to be used

Output-based methodOutput-based method

Value of outputs Value of outputs (quantity x price) the market prices of equivalent goods and services include VAT and taxes/subsidies on products (price concept is actually purchaser’s price):– intermediate consumption= gross value addedgross value added– consumption of capital– other taxes on production+ other subsidies on production= mixed incomemixed income (which comprises labour compensation and net operating surplus).


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Input-based methodInput-based method

Value of labour Value of labour (units of time valued at suitable wages/time)

+ other taxes on production

- other subsidies on production

= Net value added= Net value added

+ consumption of fixed capital

= Gross value added= Gross value added

+ intermediate consumption

= Value of total output (sum of costs)= Value of total output (sum of costs)

Task Force UNECE- Geneva, november 26-27 Estimation method to be usedEstimation method to be used

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Estimate value of labour to be used Estimate value of labour to be used Input-based methodInput-based method

(Value of labour) = (working time) X (wage)

working time by household productive activity (Source: Time use surveys)

hourly wage

The economic literature suggests two methods for estimating the value of labour:

Opportunity costOpportunity costIs based on the assumption that the time spent on unpaid work reduces the time spent on paid work. Therefore time spent on unpaid work is a cost and the valuing method is called the opportunity cost method.Replacement costReplacement costIs based on the assumption that households save money by doing housework themselves instead of buying market goods and services or hiring someone else to perform the required tasks.


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Replacement costReplacement costprovides three options: •The first option is to use the wages of specialised workers in market enterprises (e.g. a cook in a restaurant, a nurse at a day care centre, a manager at a bank, etc. );•The second possibility is to use the wages of specialised workers at home. One can buy the services of a specialised worker who comes to work in a household as a cleaner, window cleaner, nurse, gardener, private teacher, plumber, etc. •The third option is to use the wages of generalist workers. One can hire a person who is working in the household to do all the tasks that the normal running of the household requires.

The market replacement cost method with a polyvalent The market replacement cost method with a polyvalent substitute’s or generalist’s wage seems to be the most substitute’s or generalist’s wage seems to be the most appropriate basis for valuing household labour appropriate basis for valuing household labour (Eurostat 2003)(Eurostat 2003)


Estimate value of labour to be used Estimate value of labour to be used Input-based methodInput-based method

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The scheme of estimation method input The scheme of estimation method input

Net wage housekeepers (Source: CPI) Wages time 5.60 Wages time 5.60 hour/60 minutes hour/60 minutes Italy’s studyItaly’s studyIt DEPENDS ON THE COUNTRIES

Net wage housekeepers (Source: CPI) Wages time 5.60 Wages time 5.60 hour/60 minutes hour/60 minutes Italy’s studyItaly’s studyIt DEPENDS ON THE COUNTRIES

Value household production per capita

(7.800 (7.800 euroseuros per per capitacapita

Italy’s study)Italy’s study)

Value household production per capita

(7.800 (7.800 euroseuros per per capitacapita

Italy’s study)Italy’s study)

Population ageover 14 years(49.172.932 (49.172.932 Italy’s study)Italy’s study)

(Source: DEMO)

Population ageover 14 years(49.172.932 (49.172.932 Italy’s study)Italy’s study)

(Source: DEMO)

For the six main production functions, gender, etc..

Economic year value of non-market production

activities(383.630 million of (383.630 million of

currentcurrent euros euros Italy’s Italy’s studystudy))

Economic year value of non-market production

activities(383.630 million of (383.630 million of

currentcurrent euros euros Italy’s Italy’s studystudy))

Average time by household productive activity for the six main production functions, gender, etc.. (Source: TUS) (229 minutes total (229 minutes total productive activityproductive activity Italy’s study)Italy’s study)

Average time by household productive activity for the six main production functions, gender, etc.. (Source: TUS) (229 minutes total (229 minutes total productive activityproductive activity Italy’s study)Italy’s study)


Internationally studies on household production does not use a standard Internationally studies on household production does not use a standard common reference for the population considered. These differences can of common reference for the population considered. These differences can of

course lead to problems in international comparisons.course lead to problems in international comparisons.

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• Final individual consumption will be divided into three parts: fixed assets, intermediate consumption, and final consumption of goods and services. In the household satellite accounts households produce goods and services for their own use using goods and services as inputs which in the core accounts are classified as final consumption. Therefore, adaptation is needed.

• The goods consumed or transformed during the production process are considered as intermediate consumption.

• In addition, household durables are to be treated as fixed assets and consumption of fixed capital on household durables used for production has to be taken into account as input costs.

• The Classification of Individual Consumption by Purpose (COICOP) is a useful tool for dividing up final consumption. Each category may be allocated to final or intermediate consumption or to fixed assets according to its use in household production. Household durables that are not allocated to household production will be classified to final consumption.

Valuation of intermediate consumption Valuation of intermediate consumption and fixed assets and fixed assets

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Allocation of intermediate consumption to main Allocation of intermediate consumption to main outputs/principal functionsoutputs/principal functions


For analytical purposes, though, it would be important to be able to compare the volumes of services purchased by households with the services that they produce themselves. This would require a grouping of services in final consumption according to the principal functions of households. An example of list of intermediate consumption and their allocation to main outputs/principal functions are presented below.

Source: Eurostat 2003

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Allocation of intermediate consumption to main Allocation of intermediate consumption to main outputs/principal functionsoutputs/principal functions


When starting the allocation decisions, countries face questions such as:- what are the production processes like in our country?- what sort of products are in supply?-what kind of the data sources are available?

Some countries can use 4-digit level COICOP data and very detailed level time use data, some countries have much less detailed data available.

It is necessary to give a unique detailed list of the It is necessary to give a unique detailed list of the allocation intermediate consumption and fixed capital allocation intermediate consumption and fixed capital applicable for any country to use.applicable for any country to use.


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Valuation fixed assets in household production Valuation fixed assets in household production Task Force UNECE- Geneva, november 26-27

Fixed capital used in household productionThe boundary line between fixed assets and intermediate consumption is clarified in the SNA. Expenditures on durable producer goods that are small, inexpensive and used to perform relatively simple operations may be treated as intermediate consumption when such expenditures are made regularly and are very small compared with expenditures on machinery and equipment. Examples of such goods are hand tools such as saws, spades, knives, axes, hammers, screwdrivers, and so on. However, in countries where such tools account for a significant part of the stock of producers’ durable goods, they may be treated as fixed assets (SNA08 6.225).

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Allocation of household durables to main Allocation of household durables to main outputs/principal functionsoutputs/principal functions


Fixed capital in households is an important factor in understanding changes in the productivity of household. An example of list of durables and their allocation to main outputs are presented below.


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Allocation of intermediate consumption and Allocation of intermediate consumption and household durables to main outputs/principal functionshousehold durables to main outputs/principal functions


Source: Montella studies ESA95 and National Account

In Italy’s study for consumption of fixed capital it was adopted the In Italy’s study for consumption of fixed capital it was adopted the perpetual inventory method (with possibility of deterioration linear), perpetual inventory method (with possibility of deterioration linear), which allows you to obtain an estimate of the gross and net stock of which allows you to obtain an estimate of the gross and net stock of consumer durables held by households. Depreciation shares with consumer durables held by households. Depreciation shares with constant capital.constant capital.

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Consumption of fixed capitalConsumption of fixed capitalTask Force UNECE- Geneva, november 26-27

Consumption of fixed capital is the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage. The term depreciation is often used in place of consumption of fixed capital but it is avoided in the SNA because in commercial accounting the term depreciation is often used in the context of writing off historic costs whereas in the SNA consumption of fixed capital is dependent on the current value of the asset. The ”Perpetual Inventory Method” or PIM is in widespread international use forpurposes of estimating the value of consumption of fixed capital. http://www.oecd.org/std/productivity-stats/43734711.pdf The PIM has also been used and recommended in the context of household production. Which models used in calculating the depreciation of economic value? The geometric and the straight-line depreciation model or other? (SNA08 cfr. 6.240)

http://www.oecd.org/std/productivity-stats/43734711.pdf

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Consumer durables Consumer durables Task Force UNECE- Geneva, november 26-27

There are two approaches that could be taken in a satellite account. The first is to adopt an alternative treatment for consumer durables at the same time as valuing unpaid household production. The other is to leave unpaid household production excluded from the production boundary but consider replacing consumer durables by an estimate of the services they provide. Treating consumer durables as assets is also of interest in the context of measuring household saving and wealth. Examples of this type of analysis can be found in Durable Goods and their Effect on Household Saving Ratios in the Euro Area (Jalava et al, 2006), (SNA08 cfr. 29.155).

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Italy’s studyItaly’s study


Source: Montella studies ESA95 M_TUS 2002 and National Account

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Estimate taxes and social security contributions Estimate taxes and social security contributions

Taxes and social security contributions may amount to up to half the wages, depending on the country and the welfare system. If households were to buy the service from the market, they would have to pay the gross wage. On the other hand, if it is thought that households earn the money by producing the services themselves, then the net wage would obviously be more appropriate because the household would not have to pay taxes or social security contributions for themselves.The choice depends again on the purpose of the analysis.The choice depends again on the purpose of the analysis.

About:About:-Taxes on productionTaxes on production-Miscellaneous current taxesMiscellaneous current taxesIt might be necessary to check which of these taxes need to It might be necessary to check which of these taxes need to be reclassified as other taxes on production for the purposes be reclassified as other taxes on production for the purposes of household satellite accounts.of household satellite accounts.


32 The HSA in National AccountsThe HSA in National Accounts

The household satellite account (HSA) can be integrated with The household satellite account (HSA) can be integrated with accounts by institutional sector, the supply and use table accounts by institutional sector, the supply and use table (SUT), and the resources and uses account to obtain (SUT), and the resources and uses account to obtain measures of the extension of household production.measures of the extension of household production.

TheThe main purpose of satellite accounts is to give an main purpose of satellite accounts is to give an integrated picture of a given field ofintegrated picture of a given field of economic activities, economic activities, flexibly expanding the analytical capacity of national flexibly expanding the analytical capacity of national accountingaccounting without overburdening or disrupting the central without overburdening or disrupting the central system.system.


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A case study (Italy)A case study (Italy)Task Force UNECE- Geneva, november 26-27

Source: Montella studies ESA95 M_TUS 2002 and National Account

The satellite account of households production

Year 2002 (millions of current euro)

Non-market household production by type

Household production Total

SNA NON SNASNA+NON

SNA

Production of goods and services for their own final

P.12 99.879Production of goods and services for their own final

669.085 768.964

HH1 HOUSING (as market SNA CPA 55.1)

271.696

HH2 NUTRITION (as market SNA CPA 55.3.5, 15.3, 1.1)

198.538

HH3 CLOTING (as market SNA CPA 18.2, 93.01)

59.119

Domestic services paid 10.379HH4 CARE ADULT CHILDREN ANIMAL (as market SNA CPA 85.32)

49.121

Another production of goods and services non-market

P.13 0Another production of goods and services non-market

18.114

Total production SNA non-market

99.879Total production NON SNA non-market

687.199 787.078

Housing services consumption

85.259

Another production of goods and services for own final use (self-consumption agriculture, self-produced software,

4.241 90.611HH6 TRANSPORT on own account (as market SNA CPA 60.22, 50.20)

HH5 VOLUNTEER SERVICE

Codes of ESA 95

Millions of euros

Millions of euros

Volunteer (goods) 0 18.114

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In the output method approach there may be a problem In the output method approach there may be a problem in considering the treatment of simultaneous activities in considering the treatment of simultaneous activities simply taking all outputs into account.simply taking all outputs into account.

Definitions of outputs, in practice, depend on the data Definitions of outputs, in practice, depend on the data sources available. This may lead to undue differences sources available. This may lead to undue differences between countries, depending on the range of existing between countries, depending on the range of existing surveys or the willingness to undertake additional surveys or the willingness to undertake additional surveys (surveys (there is only limited experience with the output approach). .

It is necessary, if the method of input is adopted, to It is necessary, if the method of input is adopted, to develop an harmonization of time-use survey (TUS).develop an harmonization of time-use survey (TUS).

It is necessary to give a unique detailed list of the It is necessary to give a unique detailed list of the allocation intermediate or final consumption applicable allocation intermediate or final consumption applicable for any country to use. These differences can of course for any country to use. These differences can of course lead to problems in international comparisons.lead to problems in international comparisons.


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Internationally studies on household production does not Internationally studies on household production does not use a standard common reference for the population use a standard common reference for the population considered; the United States uses the population over considered; the United States uses the population over 18 (JS Landefeld et al. 2009), the OECD that more than 18 (JS Landefeld et al. 2009), the OECD that more than 15 years and Finland sets the limit at under 10 years 15 years and Finland sets the limit at under 10 years (Varjonen et al 2006). These differences can of course (Varjonen et al 2006). These differences can of course lead to problems in international comparisons. lead to problems in international comparisons.

In ESA 2010 In ESA 2010 22.89–22.95 we have a first specific point we have a first specific point on on Household production accounts. Another important Another important issue is to include the full issue is to include the full Household production accounts also in SNA. also in SNA.


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ConclusionConclusionTask Force UNECE- Geneva, november 26-27

TheThe Household production accountsHousehold production accounts::• provides information on the unpaid domestic work;provides information on the unpaid domestic work;• describes statistically aspects hitherto unmeasured; describes statistically aspects hitherto unmeasured; • highlights the importance of household production compared to highlights the importance of household production compared to the income produced in a territory; the income produced in a territory; • allows the comparison of the household production with other allows the comparison of the household production with other economic activities in GDP; economic activities in GDP; • determining the value of household production can be used in determining the value of household production can be used in social policy (example, alimony or the amount of survivor's social policy (example, alimony or the amount of survivor's pension); pension); • allows to analyze and better understand the private allows to analyze and better understand the private consumption. consumption.

It is recognized internationally that an appropriate accounting of household production would support the definition and adoption of policy measures in support of a more harmonious development.

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Thank you for your attentionThank you for your attentionFor more information:For more information:

[email protected]@istat.it


mailto:[email protected]

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Task Force UNECE- Geneva, november 26-27 ReferencesReferences

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