D1,3.canada's ptea

Canada’s Provincial and
Territorial Economic
Accounts

Arthur Berger

Regional Products and Income Accounts, Beijing, China, 15-19 March 2010

Outline

1. Regional Economic Accounts: Canadian
context
2. Regional Input Output Tables
3. Regional Income and Expenditure Accounts
4. Regional GDP by industry

2 Statistics Canada • Statistique Canada 30/04/10

Part 1: Canadian context

Principles for Canadian regional accounts:
 Integration of accounts – Input Output, Income &
Expenditure Accounts, GDP by industry
 Standardization – common survey frame, classification
systems, chart of accounts
 Coherence – establish control totals & adjust detail to
add up to total
 Use administrative data and survey data


Part 1: Canadian context

Legislative Requirements:
 Value added tax collected by federal
government on behalf of provinces, allocated to
those provinces based on regional economic
accounts expenditure estimates
 Federal transfer payments to provincial
governments also based on regional accounts
data


Part 2: Regional Input Output Tables

Topics
 Timing
 Detail
 Benchmarking role
 Data sources
 Balancing
 Deflation


Timing:
 Annual regional Input Output tables are published 34 months after the
reference period
 For example, 2006 I/O tables were published in November 2009
 National I/O tables are published concurrently with the regional tables
 Most source data available 15 months after reference period, but
some as late as 24 months



Detail:
 Regional I/O tables are broken down into 300
industries, 727 commodities, 170 final demand
categories
 This is the same detail found in the national I/O
tables



Imports & Exports Detail:
 727 commodities
 13 provinces and territories + rest of world
 Example: exports of bank and investment
commissions from Ontario province to Quebec
province were $600M in 2006



Benchmarking Role:
 Regional I/O tables provide C$ benchmark for regional
income and expenditure based GDP, and regional value
added by industry
 Regional I/O tables add-up to the national I/O tables
 National K$ I/O tables provide benchmark for national
real GDP by industry



Data Sources:
 Industry estimates
 Final demand estimates



Data Sources – Industry Estimates:
 Annual surveys, mostly establishment based, sampling
designed to produce accurate estimates by province
 Samples are usually divided into three strata:
• take all (large companies that operate in more than one industry
and/or more than one province)
• take some (medium sized companies)
• take none (smaller companies that operate in only one province
and only one industry)
 Income tax data is used for take none stratum



Data Sources – Industry Estimates:
 Other sources
• Labour expenses by industry – taxation data
• Construction – capital expenditure survey for output
• Financial industries – administrative data + enterprise survey data
• Income tax data + occasional surveys



Data Sources – Final Demand Estimates:
 Personal expenditures: retail trade survey + survey of household spending +
service industry surveys + administrative data
 Capital expenditures: capital expenditure survey
 Investment in inventories: industry surveys
 Government current expenditures: public accounts
 International imports and exports: customs data (data exchange with USA) for
merchandise, survey data for services
 Inter-provincial imports and exports: combination of survey data and modeling



Balancing:
 National & provincial/territorial supply/use data are balanced in
successive iterations
 National balancing adjustments serve as a guide for
provincial/territorial adjustments
 Implications at provincial/territorial level provide feedback loop
for re-adjusting national estimates (i.e. Petroleum extraction =
7% of national GDP, 31% of Alberta provincial GDP)



Deflation:
 Regional I/O tables are in C$ only.
 National I/O tables are deflated to K$.


Part 3: Regional Income and Expenditure
Accounts
Topics
 Timing
 Benchmarking
 Detail
 Data Sources
 Deflation


Accounts
Timing:
 Preliminary estimates published 4 months after reference period (i.e.
2008 estimates published April 2009)
 Revised estimates for most recent 4 years published 7 months later
(i.e. 2005-2008 revised estimates published November 2009)
 Revisions incorporate most recent I/O tables + all other new
information


Accounts
Timing (continued):
 National IEA revised estimates for most recent 4 years
published in May (i.e. 2005-2008 revised estimates
published May 2009)
 Plan to move to single annual release of regional IEA,
concurrent with national IEA by May 2013


Accounts
Benchmarking:
 Regional IEA C$ benchmarked to regional I/O C$ (up to 2006 so far)
 Regional IEA C$ benchmarked to national IEA C$ (2007 & 2008)
 Regional IEA K$ benchmarked to national IEA K$ (all years)
 National IEA C$ benchmarked to national I/O C$
 National IEA K$ not benchmarked to national I/O K$
 National and regional GDP in IEA very similar to national and regional GDP by industry, but not
identical


Accounts
Detail - Aggregates:
 GDP at market prices income based (C$) and
expenditure based (C$ & K$)
 Net Domestic Product at basic prices(C$)


Accounts
Detail - Income:
 Labour Income – 16 industrial sectors
 Corporate Profits – total economy; no industrial
detail


Accounts
Detail – Expenditures:
 Personal Expenditures: about 60 categories of goods and
services
 Capital Expenditure:
• Residential structures, buildings, engineering structures, 10
categories of machinery & equipment
• All broken down by government and business


Accounts
Detail – Expenditures (continued):
 Imports and Exports: 9 goods categories, 5
service categories


Accounts
Detail – Sector Accounts:
 Sources and disposition of personal income
(includes persons, unincorporated businesses
and non-profit institutions serving households)
 Government sector tax revenue, investment
income, transfer payments, subsidies


Accounts
Data Sources:
 Corporate profits – quarterly survey of financial
statements, income tax data
 Labour income – monthly household survey of
labour force, monthly payroll survey,
administrative data


Accounts
Data Sources (continued):
 Personal expenditures - monthly retail trade survey, annual
survey of household spending, service industry surveys,
administrative data
 Capital expenditures - annual capital expenditure survey,
monthly construction payroll data, monthly manufacturing
survey (shipments of building materials and machinery and
equipment) and international trade data ( machinery and
equipment)


Accounts
Data Sources (continued):
 International merchandise trade – monthly customs data
(provincial allocation is challenging)
 International services trade – quarterly and annual
surveys
 Inter-provincial trade – model based on input output
tables trade flows & aggregate production and demand
data


Accounts
Deflation:
 Personal expenditures – consumer price index
 Engineering construction expenditures – labour and material
input prices
 Home & building construction expenditures – building price
index
 Machinery and equipment – machinery and equipment price
indexes


Accounts
Deflation:
 Government current expenditures – hourly wages of
government employees
 Exports – unit values, domestic producer price indexes
(exchange rate pass-through assumption)
 Imports - unit values, foreign producer price indexes
(exchange rate pass-through assumption)


Part 4: Regional GDP by industry

Topics
 Timing
 Detail
 Data Sources
 Deflation



Timing:
 Same publication dates as the regional income
and expenditure accounts



Detail:
 Same level of industry detail as found in the
regional input-output tables



Data Sources:
 Monthly and annual industry surveys
 Monthly payroll survey
 Administrative data



Deflation:


Reference Documents

 Guide to the Income and Expenditure Accounts, Catalogue no.
13-017-X, www.statcan.gc.ca
 Gross Domestic Product by Industry Sources and Methods
with Industry Details, Catalogue no. 15-548-XIE,
www.statcan.gc.ca
 Chain Fisher Volume Index Methodology, Catalogue no. 13-604-
MIE — No. 42, www.statcan.gc.ca


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