Task force unece montella

The household production in National Accounts
Italy’s study
Monica Montella
Task Force UNECE- Geneva, november 26-27

2
SummarySummary
 Satellite Account System by SNA08Satellite Account System by SNA08
 TheThe household production inhousehold production in National AccountsNational Accounts
(SNA)/(ESA)(SNA)/(ESA)
 Estimation method to be usedEstimation method to be used
 The sequence of accounts includingThe sequence of accounts including householdhousehold
productionproduction
 Open questionsOpen questions
Task Force
UNECE- Geneva,
november 26-27

3
Satellite Account System by SNA08Satellite Account System by SNA08
Task Force
UNECE- Geneva,
november 26-27
A further and more extensive form of flexibility isA further and more extensive form of flexibility is
that of a satellite account. As its name indicates, it isthat 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, thoughMany satellite accounts are possible but, though
each is consistent with the central system, they mayeach 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 theSatellite accounts incorporate the concepts of the
central framework of national economic accounts,central framework of national economic accounts,
enhancing analytical skillsenhancing analytical skills..

4
Task Force
UNECE- Geneva,
november 26-27
Broadly speaking,Broadly speaking, there are two typesthere are two types of satellite accounts.of satellite accounts.
One typeOne type involves some rearrangement of centralinvolves some rearrangement of central
classifications and the possible introduction ofclassifications and the possible introduction of
complementary elements. Such satellite accounts mostlycomplementary 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 maytourism and environmental protection expenditures and may
be seen as an extension of the key sector accounts justbe seen as an extension of the key sector accounts just
referred to. They may involve some differences from thereferred to. They may involve some differences from the
central system, such as an alternative treatment of ancillarycentral system, such as an alternative treatment of ancillary
activities, but they do not change the underlying concepts ofactivities, 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).).

5
Task Force
UNECE- Geneva,
november 26-27
The second typeThe second type of satellite analysis is mainly based onof satellite analysis is mainly based on
concepts that are alternatives to those of the SNA. Theseconcepts that are alternatives to those of the SNA. These
include a different production boundary, an enlargedinclude a different production boundary, an enlarged
concept of consumption or capital formation, an extensionconcept of consumption or capital formation, an extension
of the scope of assets, and so on. Often a number ofof the scope of assets, and so on. Often a number of
alternative concepts may be used at the same time. Thisalternative concepts may be used at the same time. This
second type of analysis may involve, like the first, changessecond type of analysis may involve, like the first, changes
in classifications, but in the second type the main emphasisin classifications, but in the second type the main emphasis
is on the alternative concepts. Using those alternativeis on the alternative concepts. Using those alternative
concepts may give rise to partial complementaryconcepts may give rise to partial complementary
aggregates, the purpose of which is to supplement theaggregates, the purpose of which is to supplement the
central system (central system (SNA08 cfr: 29.6)SNA08 cfr: 29.6)..

6
Task Force
UNECE- Geneva,
november 26-27
Satellite accounts, especially of the second sort, allowSatellite 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 possiblewith 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).

7
Task Force
UNECE- Geneva,
november 26-27
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)

8
Task Force
UNECE- Geneva,
november 26-27
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).

9
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 (SNA08 cfr: 29.155)SNA08 cfr: 29.155).

10
Task Force
UNECE- Geneva,
november 26-27
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).

11
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 ofThe purpose of HSA is to focus attention on the part of
production that is not defined in the System of Nationalproduction that is not defined in the System of National
Accounts.Accounts.
The whole production activities carried out by families, withThe whole production activities carried out by families, with
their own capital and the unpaid work of their members fortheir own capital and the unpaid work of their members for
the process of production of goods and services for ownthe 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 theThe definition of household production expands the
concept of production and the productive role of families isconcept of production and the productive role of families is
recognized.recognized.

12
Task Force
UNECE- Geneva,
november 26-27
The concept of household production more internationallyThe concept of household production more internationally
accredited is promoted by the OECD (1995), that the productionaccredited is promoted by the OECD (1995), that the production
of families is embodied in goods and services produced withinof families is embodied in goods and services produced within
the household by its members (who consume them), combiningthe household by its members (who consume them), combining
their unpaid work with consumer durables and non durablestheir 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 aIn addition to the production of market which provides a
framework of household production, the boundaries of theframework of household production, the boundaries of the
production of National Accounts will change, the households areproduction of National Accounts will change, the households are
not seen only as consumers but as the units involved in thenot 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 householdinformal household
production accountproduction account".".
Household production definitionHousehold production definition

13Household 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.
Task Force
UNECE- Geneva,
november 26-27

14
ESA 2010ESA 2010 22.89–22.95 Household production includesHousehold production includes
only services that can be delegated to someone otheronly 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 2010ESA 2010 22.89–22.95 Household production includesHousehold production includes
only services that can be delegated to someone otheronly 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 systemHousehold satellite account system
by ESA 2010by ESA 2010
The output and value added of household production can be valued using anThe output and value added of household production can be valued using an
input or an output method.input or an output method.
The output methodThe output method implies that household production is valued at marketimplies that household production is valued at market
equivalent prices (i.e. the value observed for similar services explicitly sold onequivalent prices (i.e. the value observed for similar services explicitly sold on
the market).the market).
The input methodThe 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 whate.g. wages including or excluding social security contributions and what
reference group should be chosen (average wages, wages of specialistreference 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 anThe output and value added of household production can be valued using an
input or an output method.input or an output method.
The output methodThe output method implies that household production is valued at marketimplies that household production is valued at market
equivalent prices (i.e. the value observed for similar services explicitly sold onequivalent prices (i.e. the value observed for similar services explicitly sold on
the market).the market).
The input methodThe 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 whate.g. wages including or excluding social security contributions and what
reference group should be chosen (average wages, wages of specialistreference 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 wecare (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 wecare (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..
Task Force
UNECE- Geneva,
november 26-27

15
EntireEntire EconomicEconomic ProductionProduction
SNASNA
marketmarket
ProductionProduction
Market output by
units other than
household for
market transaction
SNA Non-marketSNA Non-market
HouseholdHousehold
- 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-marketSNA Non-market
HouseholdHousehold
- 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-
marketmarket
HouseholdHousehold
- NON SNA
Household
production
→ of which: own-
account production
of services
(transport)
→ Informal help to
other households
→ Volunteer work
(services)
NON-SNA Non-NON-SNA Non-
marketmarket
HouseholdHousehold
- NON SNA
Household
production
→ of which: own-
account production
of services
(transport)
→ Informal help to
other households
→ Volunteer work
(services)
SNASNA
non marketnon market
Other non
market output
units other than
household
SNASNA
non marketnon market
Other non
market output
units other than
household
SNASNA
marketmarket
HouseholdHousehold
Goods and
services
produced in
household
units and
supplied on
the market to
units other
than their
producer
SNASNA
marketmarket
HouseholdHousehold
Goods and
services
produced in
household
units and
supplied on
the market to
units other
than their
producer
Household productionHousehold productionHousehold productionHousehold production
Non-marketNon-market
Household productionHousehold production
Non-marketNon-market
Household productionHousehold production
Different units ofDifferent units of
householdhousehold
Different units ofDifferent units of
householdhousehold
Task Force
UNECE- Geneva,
november 26-27

16
NON MARKETNON 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
Task Force
UNECE- Geneva,
november 26-27

17
Estimation method to be usedEstimation method to be used
Output-based methodOutput-based method
Value of outputsValue 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).
Task Force
UNECE- Geneva,
november 26-27

18
Input-based methodInput-based method
Value of labourValue 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

19
Estimate value of labour to be usedEstimate value of labour to be used
(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 cost
Is 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 cost
Is 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.
Task Force
UNECE- Geneva,
november 26-27

20
Replacement costReplacement cost
provides 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 polyvalentThe market replacement cost method with a polyvalent
substitute’s or generalist’s wage seems to be the mostsubstitute’s or generalist’s wage seems to be the most
appropriate basis for valuing household labourappropriate basis for valuing household labour
(Eurostat 2003)(Eurostat 2003)
Task Force
UNECE- Geneva,
november 26-27
Estimate value of labour to be usedEstimate value of labour to be used

21
The scheme of estimation method inputThe scheme of estimation method input
Net wage
housekeepers
(Source: CPI)
Wages time 5.60Wages time 5.60
hour/60 minuteshour/60 minutes
Italy’s studyItaly’s study
It DEPENDS ON THE
COUNTRIES
Net wage
housekeepers
(Source: CPI)
Wages time 5.60Wages time 5.60
hour/60 minuteshour/60 minutes
It DEPENDS ON THE
COUNTRIES
Value household
production
per capita
(7.800(7.800 euroseuros perper
capitacapita
Italy’s study)Italy’s study)
Value household
production
per capita
(7.800(7.800 euroseuros perper
capitacapita
Population age
over 14 years
(49.172.932(49.172.932
(Source: DEMO)
Population age
over 14 years
(49.172.932(49.172.932
(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 euroseuros Italy’sItaly’s
studystudy))
Economic year value of
non-market production
activities
(383.630 million of(383.630 million of
currentcurrent euroseuros Italy’sItaly’s
studystudy))
Average time by
household productive
activity for the six main
gender, etc..
(Source: TUS)
(229 minutes total(229 minutes total
productive activityproductive activity
Average time by
household productive
activity for the six main
gender, etc..
(Source: TUS)
(229 minutes total(229 minutes total
productive activityproductive activity
Task Force
UNECE- Geneva,
november 26-27
Internationally studies on household production does not use a standardInternationally studies on household production does not use a standard
common reference for the population considered. These differences can ofcommon reference for the population considered. These differences can of
course lead to problems in international comparisons.course lead to problems in international comparisons.

22
Task Force
UNECE- Geneva,
november 26-27
• 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 consumptionValuation of intermediate consumption
and fixed assetsand fixed assets

23
Allocation of intermediate consumption to mainAllocation of intermediate consumption to main
outputs/principal functionsoutputs/principal functions
Task Force
UNECE- Geneva,
november 26-27
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

24
Allocation of intermediate consumption to mainAllocation of intermediate consumption to main
Task Force
UNECE- Geneva,
november 26-27
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 theIt is necessary to give a unique detailed list of the
allocation intermediate consumption and fixed capitalallocation intermediate consumption and fixed capital
applicable for any country to use.applicable for any country to use.

25
Valuation fixed assets in household productionValuation fixed assets in household production
Task Force
UNECE- Geneva,
november 26-27
Fixed capital used in household production
The 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).

26
Allocation of household durables to mainAllocation of household durables to main
Task Force
UNECE- Geneva,
november 26-27
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.

27
Allocation of intermediate consumption andAllocation of intermediate consumption and
household durables to main outputs/principal functionshousehold durables to main outputs/principal functions
Task Force
UNECE- Geneva,
november 26-27
Source: Montella studies ESA95 and National Account
In Italy’s study for consumption of fixed capital it was adopted theIn 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 ofwhich allows you to obtain an estimate of the gross and net stock of
consumer durables held by households. Depreciation shares withconsumer durables held by households. Depreciation shares with
constant capital.constant capital.

28
Consumption of fixed capitalConsumption of fixed capital
Task 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 for
purposes 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)

29
Consumer durablesConsumer 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).

30
Task Force
UNECE- Geneva,
november 26-27
Source: Montella studies ESA95 M_TUS 2002 and National Account

31
Estimate taxes and social security contributionsEstimate 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 taxes
It might be necessary to check which of these taxes need toIt might be necessary to check which of these taxes need to
be reclassified as other taxes on production for the purposesbe reclassified as other taxes on production for the purposes
of household satellite accounts.of household satellite accounts.
Task Force
UNECE- Geneva,
november 26-27

32
The HSA in National AccountsThe HSA in National Accounts
The household satellite account (HSA) can be integrated withThe household satellite account (HSA) can be integrated with
accounts by institutional sector, the supply and use tableaccounts 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 anmain 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 nationalflexibly expanding the analytical capacity of national
accountingaccounting without overburdening or disrupting the centralwithout overburdening or disrupting the central
system.system.
Task Force
UNECE- Geneva,
november 26-27

33
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 SNA
SNA+NON
SNA
Production of goods and
services for their own
final
P.12 99.879
Production 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 10.379
HH4 CARE ADULT
CHILDREN ANIMAL (as
market SNA CPA 85.32)
49.121
Another production of
goods and services non-
market
P.13 0
goods and services non-
market
18.114
Total production SNA
non-market
99.879
Total production NON
SNA non-market
687.199 787.078
Housing services
consumption
85.259
goods and services for
own final use (self-
consumption
agriculture, self-
produced software,
4.241 90.611
HH6 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

34
Open questionsOpen questions
 In the output method approach there may be a problemIn the output method approach there may be a problem
in considering the treatment of simultaneous activitiesin 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 dataDefinitions of outputs, in practice, depend on the data
sources available. This may lead to undue differencessources available. This may lead to undue differences
between countries, depending on the range of existingbetween countries, depending on the range of existing
surveys or the willingness to undertake additionalsurveys 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, toIt 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 theIt is necessary to give a unique detailed list of the
allocation intermediate or final consumption applicableallocation intermediate or final consumption applicable
for any country to use. These differences can of coursefor any country to use. These differences can of course
lead to problems in international comparisons.lead to problems in international comparisons.
Task Force
UNECE- Geneva,
november 26-27

35
Open questionsOpen questions
 Internationally studies on household production does notInternationally studies on household production does not
use a standard common reference for the populationuse a standard common reference for the population
considered; the United States uses the population overconsidered; the United States uses the population over
18 (JS Landefeld et al. 2009), the OECD that more than18 (JS Landefeld et al. 2009), the OECD that more than
15 years and Finland sets the limit at under 10 years15 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 2010In ESA 2010 22.89–22.95 we have a first specific pointwe have a first specific point
onon Household production accounts. Another importantAnother important
issue is to include the fullissue is to include the full Household production
accounts also in SNA.also in SNA.
Task Force
UNECE- Geneva,
november 26-27

36
ConclusionConclusion
Task 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 tohighlights 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 otherallows 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 indetermining the value of household production can be used in
social policy (example, alimony or the amount of survivor'ssocial policy (example, alimony or the amount of survivor's
pension);pension);
• allows to analyze and better understand the privateallows 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.

37
Thank you for your attentionThank you for your attention
For more information:For more information:
montella@istat.itmontella@istat.it
Task Force
UNECE- Geneva,
november 26-27

38
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november 26-27
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