Household Production and Consumption in Finland 2001

Structure ofproduction
The focus in the discussions below is on the structure of production. The
structure of production indicates the level of interrelationship between
household and market economies. Shifts from households to market economy
and vice versa are shown in shares of labour and intermediate or capital
consumption. The shifts between household and market sectors are also, of
course, shown in proportions of market-produced final consumption products
vs. household-produced products. We will discuss these issues further in the
text.
Figure 1 illustrates the structural differences between SNA and non-SNA
household production. SNA production appears to be far more
capital-intensive than non-SNA production. This is no surprise in view of the
emphasis in households on service production, which requires less capital than
goods production. SNA production is comprised mostly of housing services of
owner-occupiers. There, the consumption of fixed capital means the same as
depreciation of owner-occupied housing. Costs incurred from the repair of
dwellings and the raw materials and services of housing production show up in
intermediate consumption goods and services, which account for just over
one-third of the value of output.
Figure 1.
Structure of SNA and non-SNA household production
SNA household production
Non-SNA household production
Intermediate
consumption
35%
Consumption of
fixed capital
24%
Intermediate
consumption
21%
Net value added
41%
Consumption of
fixed capital
4%
Net value added
75%
The most decisive factor of production in non-SNA household production
is labour. Childcare and the care of adults is particularly labour intensive. The
structure of non-SNA household production is rather similar to that in the
service sector in general.
32 Statistics Finland National Consumer Research Centre