DEFINITIONS

The input-output framework as an integrated part of the European System of National and Regional Accounts (ESA95) includes the supply and use tables as well as symmetric input-output tables.

The supply and use tables are matrices by products and industries describing the domestic production process in detail (the structure of production costs and the income generated in the production process) and the flows of goods and services (output, imports, exports, intermediate and final consumption, investments) by product groups.

The supply table shows the supply of goods and services by product and by type of supplier, distinguishing output by domestic industries and imports. The supply table is compiled at basic price. For the transformation into purchaser’s prices, additional columns for trade and transport margins, taxes and subsidies on products are added.

The use table at purchaser’s prices shows the use of goods and services by product and by type of use. Furthermore, the table shows the structure of intermediate consumption and the value added generated by industry.

By definition, the total of each row in the supply table is equal to the corresponding row in the use table (provided supplies and uses are valued consistently). The column totals for each industry in supply table (output at basic prices) are equal to the column totals in use table (intermediate consumption plus value added).

The symmetric input-output table is a product by product or industry by industry matrix describing the domestic production processes and the transactions in products of the national economy in great detail.

There is one major conceptual difference between the symmetric input-output table and the supply and use table. In the supply and use tables the statistics relate products to industries, while in the symmetric input-output tables the statistics relate products to products or industries to industries. So, in a symmetric input-output table either a product or an industry classification is employed for both rows and columns.

The supply and use tables serve both statistical and analytical purposes. The most important statistical purposes are integration of GDP calculation by output and expenditure approach, identification of gaps in primary sources, best framework for calculation of economic variables and balancing at constant prices (double deflation method). Symmetric input-output tables are the basis for economic analysis.

METHODOLOGY

Calculating the gross domestic product (GDP) at previous year’s prices by double deflation method and chain-linking

GDP at previous year’s prices is compiled within the framework of the supply and use tables. This results in a consistent and integrated set of estimates for GDP at previous year’s prices by production and expenditure approaches.

The supply and use tables of year t at current prices are compiled in previous year’s prices of t-1 using double deflation method with chain-linking. Double deflation means that the output and intermediate consumption for the different industries are deflated separately. Value added at previous year’s prices by industry is estimated as the difference between output and intermediate consumption of goods and services at previous year’s prices. With the chain-linking method, the weights are derived from the supply and use tables for previous year t-1 at current prices.

The supply table at previous year’s prices

The supply table in basic value at previous year’s prices is derived as sum of output and imports calculated at previous year’s prices. The output by industry and by product (valued at basic prices) is calculated at previous year’s prices by dividing the current price figures with a set of price indices. The following price indices are used for deflation: agricultural output price indices, producer price indices by economic activities (domestic production for the domestic market and for exports), construction price indices, consumer price indices, export price indices, service producer price indices. For extrapolation of output, the different physical volume indices, for example, the changing number of passenger-kilometres, tonne-kilometres, employees, is also used. Imports CIF of products are calculated at previous year’s prices by deflation with import price indices.

The use table at previous year’s prices

All transactions with goods and services in the use tables, i.e. intermediate consumption, household final consumption expenditure, capital formation and exports are firstly deflated at basic values. The use matrices for imported products and domestically produced products are deflated separately. The domestic use at basic value of the product is deflated with the supply side’s price index used for deflation of output for the same product. The imported use of product is deflated with the same import price index derived from the supply side. This ensures that the supply and use of each product at previous year’s prices is balanced at basic values.

Previous year’s price figures for trade and transport margins, VAT, products taxes and subsidies are calculated, specified by products, activities and transactions, based on volume projection method. Tax, subsidies and margins basic rates from the use table of the previous year t-1 are used to estimate trade and transport margins, VAT, products taxes and subsidies at previous year’s prices. Previous year’s price figures for the use of each product in purchasers’ values for intermediate consumption, capital formation and exports are derived as the domestic and imported use at basic values plus taxes less subsidies on products and trade and transport margins.

The supply table in purchasers’ values is calculated at previous year’s prices by adding figures for trade and transport margins, VAT, products taxes and subsidies from the use table to the supply table in basic values.

Value added at previous year’s prices by industry is calculated by double deflation. Double deflation means that the output and intermediate consumption for the different activities are deflated separately and value added at previous year’s prices are derived as balancing items.

Deflation of non-market producers’ output (i.e. government and NPISH) is based on the input method. The government and NPISH output at previous year’s prices by industry is calculated as sum of costs: intermediate consumption + compensation of employees + consumption of fixed capital + taxes on production (valued at previous year’s prices). Previous year’s price estimates for the non-market output by government and by NPISH are estimated as the difference between the total costs of production minus sale of market output.

Household final consumption expenditure is firstly deflated at basic values. Trade and transport margins, VAT, products taxes and subsidies at previous year’s prices are estimated by applying the base year margin and tax rates of each product. In the final stage, previous year’s price figure for final consumption expenditure by households in purchasers’ values is corrected by deflating with consumer price indices. This leads to a revision of the trade margin valuation matrix at previous year’s price.

CLASSIFICATIONS

Statistical classification of economic activities in the European Community (NACE Rev. 1.1)

01

Agriculture, hunting and related service activities

02

Forestry, logging and related service activities

05

Fishing, operation of fish hatcheries and fish farms; service activities incidental to fishing

10,11

Mining of coal, lignite and oil-shale; extraction of peat. Crude petroleum and natural gas production

12

Mining of uranium and thorium ores

13

Mining of metal ores

14

Other mining and quarrying

15

Manufacture of food products and beverages

16

Manufacture of tobacco products

17

Manufacture of textiles

18

Manufacture of wearing apparel; dressing and dyeing of fur

19

Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness

20

Manufacture of wood and wood products, except furniture; manufacture of articles of straw and plaiting materials

21

Manufacture of pulp, paper and paper products

22

Publishing, printing and reproduction of recorded media

23

Manufacture of coke, refined petroleum products

24

Manufacture of chemicals and chemicals products

25

Manufacture of rubber and plastic products

26

Manufacture of other non-metallic mineral products

27

Manufacture of basic metals

28

Manufacture of fabricated metal products, except machinery and equipment

29

Manufacture of machinery and equipment

30

Manufacture of  office machinery and computers

31

Manufacture of electrical machinery and apparatus

32

Manufacture of radio, television and communication equipment and apparatus

33

Manufacture of medical, precision and optical instruments, watches and clocks

34

Manufacture of motor vehicles, trailers and semi-trailers

35

Manufacture of other transport equipment

36

Manufacture of furniture, manufacture n.e.c.

37

Recycling

40

Electricity, gas, steam and hot water supply

41

Collection, purification and distribution of water

45

Construction

50

Sale, maintenance and repair of motor vehicles and motorcycles; retail sale and automotive fuel

51

Wholesale trade and commission trade

52

Retail trade, repair of personal and households goods

55

Hotels and restaurants

60

Land transport; transport via pipelines

61

Water transport

62

Air transport

63

Supporting and auxiliary transport activities; activities of travel agencies

64

Post and telecommunications

65

Financial intermediation

66

Insurance and pension funding

67

Activities auxiliary to financial intermediation

70

Real estate activities

71

Renting of machinery and equipment without operator and of personal and household goods

72

Computer and related activities

73

Research and development

74

Other business activities

75

Public administration and defence; compulsory social security

80

Education

85

Health and social work

90

Sewage and refuse disposal, sanitation and similar activities

91

Activities of membership organisation n.e.c.

92

Recreational, cultural and sporting activities

93

Other service activities

95

Private households with employed persons

 

Statistical classification of products by activity in the European Economic Community (CPA 2002)

01

Products of agriculture, hunting and related services

02

Products of forestry, logging and related services

05

Fish and other fishing products, services incidental to fish

10,11

Coal, lignite and oil-shale; peat. Crude petroleum and natural gas, services incidental to oil and gas extraction, excluding surveying

12

Uranium and thorium ores

13

Metal ores

14

Other mining and quarrying products

15

Food products and beverages

16

Tobacco products

17

Textiles

18

Wearing apparel; furs

19

Leather and leather products

20

Wood and products of wood and cork (except furniture); articles of straw and plaiting materials

21

Pulp, paper and paper products

22

Printed matter and recorded media

23

Coke, refined petroleum products and nuclear fuel

24

Chemicals, chemical products and man-made fibres

25

Rubber and plastic products

26

Other non-metallic mineral products

27

Basic metals

28

Fabricated metal products, except machinery and equipment

29

Machinery and equipment n.e.c.

30

Office machinery and computers

31

Electrical machinery and apparatus n.e.c.

32

Radio, television and communication equipment and apparatus

33

Medical, precision and optical instruments, watches and clocks

34

Motor vehicles, trailers and semi-trailers

35

Other transport equipment

36

Furniture; other manufactured goods n.e.c.

37

Recovered secondary raw materials

40

Electrical energy, gas, steam and hot water

41

Collected and purified water, distribution services of water

45

Construction work

50

Trade, maintenance and repair services of motor vehicles and motorcycles; retail services of automotive fuel

51

Wholesale trade and commission trade services, except of motor vehicles and motorcycles

52

Retail trade services, except of motor vehicles and motorcycles; repair services of personal and household goods

55

Hotels and restaurant services

60

Land transport and transport via pipeline services

61

Water transport services

62

Air transport services

63

Supporting and auxiliary transport services; travel agency services

64

Post and telecommunication services

65

Financial intermediation services, except insurance and pension funding services

66

Insurance and pension funding services, except compulsory social security services

67

Services auxiliary to financial intermediation

70

Real estate services

71

Renting services of machinery and equipment without operator and of personal and household goods

72

Computer and related services

73

Research and development services

74

Other business services

75

Public administration and defence services, compulsory social security services

80

 Education services

85

Health and social work services

90

Sewage and refuse disposal services, sanitation and similar services

91

Membership organization services n.e.c.

92

Recreational, cultural and sporting services

93

Other services

95

Private households with employed persons

CONTACT PERSON

Iljen Dedegkajeva

Input-Output Tables Service

Tel +372 625 9374

iljen.dedegkajeva@stat.ee

Updated: 30.06.2010