Household Production and Consumption in Finland 2001

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Foreword The national accounts are a comprehensive set of statistics that provide an overview of the size and development of the economy. Their availability is a crucial issue for economic analysis. Since Finland joined the European Union in 1995, the importance of national accounts has further increased because of needs of comparability of economic data on different countries. In the national accounts, statistics on production, income formation and income expenditure are compiled separately for different sectors, one of which is the household sector. The household sector has a dual role in the national accounts. On the one hand households have a consumer role in that they purchase goods produced in the market. On the other hand, households provide a significant share of goods and services produced in the economy. Households engage in activities that create added value and that generate welfare. However, only part of this work is included in the national accounts. For decades now national and international experts have debated the possibility of measuring household production in its entirety and showing the results in the same accounting framework with other production. Extended national accounts that incorporate household production could help to give a more comprehensive picture of the interplay and interaction between different sectors and also show what kind of shifts in economic activity occur between the sectors. Furthermore, they could improve the comparability of national economies both over time and between different countries. These are some of the key aims of the proposed Household Satellite Account. The Household Satellite Account has been developed on the basis of the method discussion that has been going on within Eurostat (Statistical Office of the European Communities). Finnish experts have made a valuable contribution to this discussion: among them are Eeva Hamunen and Iiris Niemi from Statistics Finland and Johanna Varjonen from the National Consumer Research Centre, who have been closely involved in compiling the present report. A number of other experts from these two organisations have also contributed to the development of the national satellite account at hand. The enthusiasm and excellent cooperation of all the people involved has made possible this pioneering project and given it access to extensive datasets and interpretations of those data. Statistics Finland and the National Consumer Research Centre have been pleased to have the country’s leading experts and partners on the project steering group; they have all shown great commitment to the work of this group. Not only was the steering group a huge source of inspiration to the research team, but it also provided intelligent advice and directions on where it should head with its work. National Consumer Research Centre Statistics Finland 3
On behalf of Statistics Finland and the National Consumer Research Centre it is our great pleasure to thank Johanna Varjonen and Kristiina Aalto for writing up this report as well as the whole project team and the steering group. The aim now is to build on this partnership and to compile household satellite accounts on a regular basis at a five-year interval or more often. We hope that this English translation of the original Finnish report will provide useful clues for teams in other countries working to develop their own satellite accounts. Helsinki, November 2005 Eila Kilpiö Jussi Simpura Ari Tyrkkö Director, Professor Director of Director of Economic National Consumer Social Statistics Statistics Research Centre Statistics Finland Statistics Finland 4 Statistics Finland National Consumer Research Centre
Page 1 and 2: Johanna Varjonen - Kristiina Aalto
Page 3: Tiedustelut - Förfrågningar - Inq
Page 7 and 8: Contents Foreword . . . . . . . . .
Page 9 and 10: Figure 11 Shopping and travel relat
Page 11 and 12: Summary The Household Satellite Acc
Page 13 and 14: 2 Definitions and boundaries Househ
Page 15 and 16: 3 Methods and their development In
Page 17 and 18: 4 Household satellite account 2001
Page 19 and 20: Data from the National Accounts Nat
Page 21 and 22: Different studies have applied diff
Page 23 and 24: Table 3. Household capital goods, e
Page 25 and 26: 4.3 Principal functions of househol
Page 27 and 28: Travel and services related to hous
Page 29 and 30: food obtained through hunting, fish
Page 31 and 32: 5 Value ofhousehold production 5.1
Page 33 and 34: Structure ofproduction The focus in
Page 35 and 36: In other calculations shown in this
Page 37 and 38: Figure 2. Household production by p
Page 39 and 40: In the Satellite Account, however,
Page 41 and 42: The eating of snacks has become inc
Page 43 and 44: Care ofchildren and adults Childcar
Page 45 and 46: Volunteer work As the name implies,
Page 47 and 48: Shopping, services and travel relat
Page 49 and 50: Table 9. Percentage of household ty
Page 51 and 52: Figure 14. SNA and non-SNA househol
Page 53 and 54: When looking at income quintiles, t
Page 55 and 56:
Examples of final consumption produ
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45 and families with schoolchildren
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Figure 23. Volunteer work by type o
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6.3 Conclusions by type ofhousehold
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7 Integrating household production
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Production for own use accounts for
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million euros From household sector
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8 Discussion ofthe results and need
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Shopping, running errands and relat
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The data were well suited for the c
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however, it is always open to criti
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Holloway S, Short S, Tamplin S (200
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Varjonen J, Aalto K, Leskinen J (20
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Appendix 2. Principles for the clas
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Appenndix 3 (cont.) Principal Categ
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Appenndix 3 (cont.) Childcare and c
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Appenndix 3 (cont.) Shopping and se
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Appendix 5. Housing services produc
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Appendix 7. Production and income g
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Appendix 7 (cont.) PERSONS LIVING A
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Appendix 7 (cont.) COUPLES, 45-64 y
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Appendix 7 (cont.) SINGLE-PARENT FA
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Appendix 7 (cont.) FAMILIES WITH CH
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Appendix 7 (cont.) I-QUINTILE Milli
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Appendix 7 (cont.) III-QUINTILE Mil
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Appendix 7 (cont.) V-QUINTILE Milli
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Appendix 9. Sequence of extended ac
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Table 3. Household production as pa
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Household Production and Consumption in Finland 2001

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