CENTRAL BUREAU OF STATISTICS The Netherlands National Accounts Sectors Division

COMPILATION OF HOUSEHOLD SECTOR ACCOUNTS IN THE NETHERLANDS NATIONAL

ACCOUNTS*

Paul van der Laan

Paper prepared for the UN-project concerning the review of the household sector accounts in the System of National Accounts

Nr. NA-023 1987

The views expressed in this paper are those of the author and do not necessarily reflect the views of the Netherlands Centra1 Bureau of Statistics

COMPILATIOM OF HOUSEIIOLD SECTOR ACCOUMTS I I J THE NETIiERLANDS

NATIONAL ACCOUNTS

Abs t rac t

Th i s paper p rov i des a conc ise d e s c r i p t i o n of t he way houschold s e c t o r

accounts a re compi led i n t h e Nether lands Na t i ona l accounts. I t s t a r t s w i t h a

b r i e f d e s c r i p t i o n o f t h e h i s t o r i c a 1 development o f N a t i o n a l accounts i n the

Netherlands. Then t h e p resen t n a t i o n a l account ing scheme i s s u c c i n c t l y

described, f o l l o w e d by a d e s c r i p t i o n o f the contents, main sourc rs and methods

o f t h e t r a n s a c t i o n s on t he accounts f o r t he household sector . D i f f e rences w i t h

t he recomnrndations i n the Un i t ed Nat ions ' System o f N a t i o n a l Accounts a re se t

f o r t h as much as poss ib le . The d e s c r i p t i o n s t a r t s w i t h t he p roduc t i on account

and ends w i t h t h e c a p i t a 1 f i nance account. Spec ia l a t t e n t i o n i s p a i d t o t h e

es t ima t i o n o f p r i v a t e f i n a l consumpt i o n expendi ture. The paper i s conc Luded

w i t h some i n t e n t i o n s concerning f u r t h e r development o f t he household s e c t o r

accounts i n t h e Nether lands.

Contents

Abs t rac t

1. I n t r o d u c t i o n

2. H i s t o r i c a 1 drvelopment

3. The present n a t i o n a l account ing scheme

3.1. The s e c t o r a l breakdown

3.2. The accounts

4. The p r o d u c t i o n account 9

4.1. Gross ou tpu t and i n t e rmed ia te consumption 9

4.2. Components of va lue added 10

4.3. Owner-occupied housing and own account c a p i t a l f o r m a t i o n 12

5. The income and out l ay account 14

5.1. Compensation o f employees 14

5.2. Prcpe r t y and e n t r e p r e n e u r i a l income 16

5.3. Casualty insurance t r ansac t i ons 18

5.4. D i r e c t taxes and s o c i a l s e c u r i t y c o n t r i b u t i o n s 19

5.5. Other cu r ren t t r a n s f e r s 20

5.6. F i n a l consumpt i o n expendi t u r e and ne t sav ing 2 2

6. The cap i t a1 accumulat ion account 24

7. The c a p i t a l f i nance account and balance sheets

7.1. I n t r o d u c t o r y remarks

7.2. A c q u i s i t i o n o f f i n a n c i a l assets

7.3. Incur rence of l i a b i li t i e s and n e t lend ing

7.4. Conc l ud i ng remarks

8. P r i v a t e f i n a l consumption expendi t u r r by type 29

8.1. Es t ima t i on methods used i n the Na t i ona l accounts 2 9

8.2. Dispa ra t i es w i t h the Continuous budget survey 30

8.3. The p o s s i b i l i t i e s o f i n c o r p o r a t i n g budget survey data i n

N a t i o n a l accounts 3 2

9. Summary

Appendices

A. Desc r i p t i o n o f t h e Continuous budget survey

A l . Aims o f the Continuous budget survey

AZ. Sampling

A3. Methods

A3.1. The ques t ionna i res

A3.2. O i s t r i b u t i o n o f households over the whole year

A3.3. C a l c u l a t i o n of average consumption

A4. Concepts

A4.1. Income

A4.2. Consurnption

A4.3. The terms household, person l i v i n g alone, and head

household

A4.4. C l a s s i f i c a t i o n s

B. D e s c r i p t i o n of the S t a t i s t i c s o f p r r s o n a l income and wea l th

BI. I n t r o d u c t i o n

82. Aims o f t h e S t a t i s t i c s o f perconal income and weaLth

83. Methods

83.1. C o l l e c t i o n o f da ta

83.2. The Dutch personal income and p rope r t y tax

84. Concepts

84.1. Income concepts and wea l th concept

84.2. S t a t i s t i c a 1 u n i t s

84.3. Socio-economic ca tegor ies

84.4. Hmseho ld concept, types o f households, and f a m i l y

stages

84.5. Standa rd i za t i on o f incomes

84.6. Other c l a s s i f i c a t i o n s

Notes 53

Ref e rences and SU rvey repo r t s 54

Tab l e s

1. Produc t ion account f o r the sec to r Non- f inanc ia l enterpr ises,

corporate, quas i -corporate and un incorpora ted 4 6

2. Income and o u t l a y account f o r the combined sec to r Households,

p r i v a t e non - f i nanc ia l un incorpora ted en te rp r i ses and p r i v a t e

non -p ro f i t i n s t i t u t i o n s 47

3. Capi ta1 accumulat ion account f o r the combined s e c t o r Households,

p r i v a t e non-f i n a n c i a l un incorpora ted en te rp r i ses and p r i v a t e

non -p ro f i t i n s t i t u t i o n s 49

4. Capi ta1 f i nance account f o r t he combined sec to r Haiseholds,

p r i v a t e non-f i n a n c i a l un incorpora ted en te rp r i ses and p r i v a t e

non-prof i t i n s t i t u t i o n s ( t e n t a t i v e r e s u l t s ) 50

5. Cornposition o f n e t e q u i t y o f ha iseholds i n l i f e insurance and

pens ion fund reserves 5 1

6. P r i v a t e f i n a l consumption expendi t u r e i n t he domest i c market

by type ( i n purchasers ' va lues)

1. I n t r o d u c t i o n

Th i s paper p resen ts a d e s c r i p t i o n of the compi la t ion of household sec to r

accounts i n t h e Nether lands Na t i ona l accounts. I t s t a r t s w i t h a b r i e f

d e s c r i p t i o n of the h i s t o r i c a l development o f FJational accounts i n t h e

N r the r l ands ( sec t i on 2 ) . Then t he present n a t i o n a l account ing schene i s b r i e f l y

descr ibed ( s e c t i o n 31, as wel l as the contents, sources and methods of t he

var ious t r a n s a c t i o n i tems on the severa l accounts f o r t h e household sec to r

us i ng t he SNA Quest ionnai r e t a b l e s (sect ions 4-71. D i f ferences w i t h t h e Uni t r d

Nat ions ' System o f N a t i o n a l Accounts a re i n d i c a t e d i f necessary.

I n s e c t i o n 8 t he e s t i m a t i o n of p r i v a t e f i n a l consumption expend i tu re i n t h e

Nether lands Na t i ona l accounts i s described. I n t h i s connect ion t he p o s s i b i l i -

t i e s o f i n c o r p o r a t i n g budget survey da ta i n Na t i ona l accounts are discussed. I n

two appendices t h e Continuous budget survey and t h e S t a t i s t i c s o f persona l

income and wea l th a re described.

2. H i s t o r i c a 1 development 1)

Dur ing t he s t a r t i n g p e r i o d o f Ma t i ona l account ing i n t he Nether lands i n t he

second h a l f o f t h e f o r t i e s - a f t e r s o m experiments d u r i n g World War I 1 - t h e

system of accounts d i s t i n g u i s h e d on ly a l i m i t e d number o f t r ansac t i ons f o r

f i v e separate sectors; main ly as a consequence o f t h e s c a r c i t y o f s t a t i s t i c s

i n those days. Besides, a t t e n t i o n was more d i r e c t e d on inpu t -ou tpu t tables,

than on t he system o f accounts. The former were seen as an impor tan t a i d f o r

ob ta i n i ng cons i s t en t est imates o f supply and demand o f goods and s r r v i ces. They

p rov ided moreover a coherent and f a i r l y d e t a i l ed p i c t u r e o f t h e p r o d u c t i o n

s t r u c t u r e o f the Dutch economy, which was o f g rea t importance i n a p e r i o d of

reconst ruc t ion .

A p e c u l i a r i t y o f t h e f i r s t p e r i o d o f n a t i o n a l account ing i n t h e Nether lands

was t h e s p e c i a l a t t e n t i o n t h a t was p a i d t o the n a t i o n a l weal th and t o a

na t i o n a l balance sheet o f the Netherlands. N a t i o n a l balance sheets were

conp i l ed f o r the years 1948-1949. Est imates o f the n a t i o n a l weal th were made

f o r the years 1948-1958. Du r i ng the e a r l y f i f t i e s a l c o much work was d r vo ted t o

q u a r t e r l y e s t i m a t r s o f n a t i o n a l income and the development of q u a r t r r l y

Nat i o n a l accounts.

A t t he end o f t h i s f i r s t stage, as N a t i o n a l accounts were used more and more

f o r s c i e n t i f i c research, government p o l i c y and s e c t o r a l ana lys is , i t became

necessary t o search f o r a form t h a t met the wishes o f these users. The f i r s t

comprehensive r e s u l t s were pub l i shed i n 1954 and t h i s l ed t o a second s tage i n

the deve lopment o f Mat i o n a l account ing i n the Netherlands. \ l i t h the const ruc-

t i o n of t he new system o f accounts a diagram o f t h e economic proces i n which

n a t i o n a l income ac ted as a cen t ra1 magnitude, was used as a guidance.

The Dutch system o f accounts dev ia ted l a r g e l y from t h e i n t e r n a t i o n a l

recommendations o f those days. The Uni t e d Na t ions ' "System o f N a t i o n a l

Accounts and Suppor t ing Tables" (1953) was more r e s t r i c t e d i n i t s aims than t h e

Dutch system o f t h a t time.

Dur ing the years 1950-52, however, compi la t ion o f q u a r t e r l y t. lat ional

accounts r e q u i r e d so much work t h a t the compi la t ion o f separate annual f i g u r e s

had t o be dropped. The annual f i g u r e was obta ined s imply as t he sum of the four

q u a r t e r l y f i gu res , But be fo re long i t appeared t h a t t he method empCoyed caused

dev ia t i ons from t h e a c t u a l trends, So i n 1953 t he work on q u a r t e r l y N a t i o n a l

accounts was stcpped, and t he a c t i v i t i e s on annual data were resumed on t he

bas i s of more s t r u c t u r a l in format ion. I n t he end the tdetherlands Centra1 Bureau

o f S t a t i s t i c s decided on a r e v i s i o n of t he annual N a t i o n a l accounts from 1948.

Wi th t h c p u b l i c a t i o n "Nat ional Accounts o f the Nether lands 1948-1957

( rev ised data)" (1958) a t h i r d stage i n t he development o f Na t i ona l accounts i n

t h e Nether lands s tar ted. The p r i n c i p a l purpose of the r e v i s i o n was t o o b t a i n

t ime-series whi ch were complete l y comparab l e as regards accuracy, def i n i t i ons

and c l a s s i f i c a t i o n s . A t the Same t ime the i n t e r n a t i o n a l d e f i n i t i o n s as g i v e n by

the U n i t e d Nat ions and t h e Organ isa t ion f o r European Economic Co-operation were

s u b s t i t u t e d f o r the Dutch d e f i n i t i o n s , i n s o f a r as the l a t t e r d i f f e r e d f rom the

i n t e r n a t i o n a l ones. F i n a l ly, c e r t a i n s p e c i f i cat ions no t g iven i n p rev ious

p u b l i c a t i o n s on t he N a t i o n a l a c c w n t s werr worked out. These new spec i f i c a t ions

were needed f o r purposes o f domestic economic p o l i c y and f o r submission t o

i n t e r n a t i o n a l agencies. The number o f sectors d i s t i n g u i s h e d i n t he system o f

accounts a l s o increased ( f rom 5 t o 7).

S inc r 1958 t h r Nether lands system o f N a t i o n a l accounts remained much the

Same u n t i l l t he r e v i s i o n o f t h e Un i t ed Nat ions ' "A Systrm o f N a t i o n a l Accounts"

i n 1968, I n the p u b l i c a t i o n "Nat ional Accounts 1972" t he Nether lands Centra1

Bureau o f S t a t i s t i c s adapted t h e d e f i n i t i o n s o f t h e t r ansac t i ons and aggregates

o f the new SNA. As a consequence the da ta were r e v i s e d from 1960 on. The sector -

breakdown, however, was s t i l l based on t h e p r i n c i p l e s s e t ou t i n t h e p rev ious

pub l i ca t i ons .

Two years before, i n 1970, t h e Nether lands Centra1 Rureau of S t a t i s t i c s had

i n s t i t u t e d t he so-ca l led "Standaard B e d r i j f s i n d e l i n g " (SB1 1970, r ev i sed i n

19741, based on the " I n t e r n a t i o n a l Standard I n d u s t r i a l C l a s s i f i c a t i o n s of A l l

Economic A c t i v i t i e s " ( I S I C 1968) and t he "Nomenclature des ac t i v i t & s

Pconomiques dans l e s Communautes europeennes" (NACE 1970). T h i s meant

t h a t f o r some branches p rev ious data were no t compat ible w i t h data f rom 1969

onwards,

Dur ing 1978-81 t h e Net her lands Centra1 Bureau of S t a t i s t i c s c a r r i e d ou t a

second r e v i s i o n of t h e Na t i ona l accounts. Th is r e v i s i o n was needed t o b r i n g t h e

r e s u l t s from new and improved s t a t i s t i c s i n t o the Na t i ona l accounts, combincd

w i t h the wish t o update the c l a s s i f i c a t i o n of s o m t ransac t i ons and t rans-

actors. The r e v i s i o n concerned t he r e p o r t i n g year 1977 and t h r r e s u l t s were

pub l i shed i n 1981 w i t h t he p u b l i c a t i o n " IJat ional Accounts 1980". Recent l y the

1977-rav is ion has been c a l c u l a t e d back t i l 1 1969. The rev ised est imates have

been presented i n t h e pub li c a t i o n "fdationa l Accounts 1969-1981 w i t h r e v i sed

se r i es f o r the years 1969-1976" (publ ished i n 19851.

I n 1986, a f t e r a s t a r t i n g p e r i o d o f a few years, the p u b l i c a t i o n of

q u a r t e r l y Nat i o n a l accounts was rrsumed. A t p resent t he re are q u a r t e r l y

est imates o f the supply and d i s p o s i t i o n of goods and services, gross domestic

product by major d i v i s i o n of indust r ies , compensation of employees etc. from

1977 f o r t h e Netherlands.

3. The Dresent n a t i o n a l account ina scheme

3.1. The s e c t o r a l breakdown

The present n a t i o n a l account ing scheme used by the Nether lands Centra1 Bureau

o f S t a t i s t i CS comprises t he f 0 1 lowing sectors:

1. Non- f inanc ia l en te rp r i ses

2 , Government: Cent r a l government and o the r p u b l i c au tho r i t i e s

3. Government: S o c i a l s e c u r i t y funds

4. Households and p r i v a t e non-prof i t i n s t i t u t i o n s

5. Banking

6. Insurance

7. Rest o f t he world.

Th is d i v i s i o n a r i s e s from the major r o l e i n the economic system. The

p r imary d i s t i n c t i o n made i s t h a t between en te rp r i ses and households; a

d i s t i n c t i o n which i s based on t he d i f f e r e n t r o l e s p layed by these g r w p s i n the

economic process. The impor tant f u n c t i o n performed by t h e Government i n meet ing

t h e c o l l e c t i v e nerds o f the economy and i n r e d i s t r i b u t i n g incomes leads

na tu ra1 l y t o t he c r e a t i o n o f a separate Government sector. The economic t rans-

ac t i ons of f i n a n c i a l i n s t i t u t i o n s (8anking and Insurance) d i f f e r so much f rom

o the r rconomic un i t s , t h a t i t seems u s e f u l t o keep them separate.

t i t t l e differente of op in i on e x i s t s on the d i v i s i o n i n t o sectors, so f a r as

the na tu re of t h e d i s t i n c t i v e sec to rs i s concerned. I n drawing the boundaries

between the va r i ous sectors, t h e r e are c e r t a i n f a c t o r s which demand f u r t h e r

considerat ion. They a r i s e from t h e f a c t t h a t s i m i l a r a c t i v i t i e s may occur i n

d i f f e r e n t sectors; thus, product i o n may be generated by Government, as we l l as

by enterpr ises, The boundary between Government and e n t e r p r i s e s i s determined

by the na tu re o f t he economic a c t i v i t i e s performed, r a t h e r than by admini-

s t r a t i v e o r l e g a l d i s t i n c t i o n s . Hence, i t i s use fu l t o i n c l u d e i n t h e

e n t e r p r i s e sec to r Government i n s t i t u t i o n s produc ing ooods and serv ices which

cou ld equa l l y we l1 be produced by p r i v a t e enterpr ises, even i f t h e Govrrnment

en te rp r i ses have a p r a c t i c a 1 o r l e g a l monopoly.

The t r ansac t i ons o f the e n t e r p r i s r sec to r w i t h regard t o p roduc t i on and

c a p i t a 1 fo rmat ion a re subdiv ided accord ing t o k i n d o f econornic a c t i v i t y based

on the "Standard I n d u s t r i a l C l a s s i f i c a t i o n " (SB1 1974) o f t he Fletherlands

Centra1 Eureau o f S t a t i s t i c s .

The combined sec to r o f households and p r i v a t e n o n - p r o f i t i n s t i t u t i o n s

i nc l udes a l 1 persons uho a re r es i den t s o f t h e Nether lands and a l 1 non-

p roduc t i ve i n s t i t u t i o n s . The concept o f residence i s de f i ned i n accordance

u i t h t he i n s t r u c t i o n s of t h e I n t e r n a t i o n a l Monetary Fund f o r t h e compi l a t i o n of

t h e balance o f payments. Res idents o f tho Nether lands uho a re ternporar i l y

abroad ( t ou r i s t s , d i p l oma t i c representat ives, members o f t he armed forces,

etc. 1, a l s o a re i nc l uded i n t h e household sector. Thr expendi t u r e o f these

persons abroad i s consequent ly regarded as impor ts by Nether lands households.

ConverseLy,foreign t o u r i s t s , etc. temporar i l y s t ay i ng i n t h e I le ther lands a re

no t inc luded i n households, bu t i n t h e "Rest o f t he world"; t h e i r purchases a re

t he re fo re i nc l uded i n exports.

The d i s t i n c t i o n betueen households and o the r sec to rs i s p r i m a r i l y bas rd on

the differente i n econornic a c t i v i t i e s and no t on a s u b d i v i s i o n o f persons o r

i n s t i t u t i o n s . Every person who i s a Nether lands res i den t i s p a r t o f t he

household sector. I n a d d i t i o n he o f t e n takes p a r t i n t h e p roduc t i on process by

making h i s se r v i ces ava i lab le , as an employee, as an entrepreneur, o r as a

p r o v i d e r o f cap i t a l . As such, he w i l 1 a l s o be i nc l uded i n t he e n t e r p r i s e

sec to r o r any o f the o t h e r sectors, depending on the sec to r i n which he takes

p a r t - d i r e c t l y o r i n d i r e c t l y - i n t h e p roduc t i on process. The reuards f o r

these p roduc t i ve se rv ices appear as payments by t h r l a t t e r sec to r s and as

r e c e i p t s by t h e household sector. The expendi ture of t h i s income, a f t e r

c o r r e c t i o n f o r any cu r ren t t ransfers , i s a l s o shoun i n t h e accounts o f t h e

household sector.

Th* Same a p p l i as, i n p r i nc i p l e , t o groups. \.lhen i n d i v i d u a l s combine i n

groups f o r p roduc t i ve purposes, such groups w i l 1 be inc luded i n the e n t e r p r i s e

sector, so f a r as t h r i r p roduc t i ve a c t i v i t i e s are concerned (e.g., p roduc t i on

co-operatives, companies). If, however, the g r w p has no p roduc t i ve purposes

(e.g., amateur spo r t clubs, c h a r i t a b l e i n s t i t u t i o n s , etc.), t h e i r purchases of

goods and se rv i ces a re c l a s s i f i e d as household consumption expendi ture, e i t h r r

f inanced by members' c o n t r i b u t i o n s o r by Government t rans fe rs . The wages and

s a l a r i e s p a i d t o p t r sons employed by these assoc ia t ions a re a l so regarded as

p a r t o f househo l d consumpt ion, whi l e t he s e r v i ces rendered by t hese persons are

i n c luded i n the e n t e r p r i s e sec to r as product ion.

Pcrsons l i v i n g i n communities, e.g., convents, i n s t i t u t e s f o r nu rs i ng and

care o f t he sick, barracks, board ing i n s t i t u t e s , etc., a re a l s o i nc l uded i n t he

household sector. I n so f a r as they are engaged i n p roduc t i ve a c t i v i t ies,

however, they a re a t t r i b u t e d t o o the r sectors. The se rv i ces o f nuns engaged i n

teaching are thus inc luded i n the Governmrnt sector. The p a i d s t a f f o f nu rs i ng

i n s t i t u t e s , etc. (e.g., nu rs i ng and domestic s t a f f ) a re i nc l uded i n t h e

e n t e r p r i s e sector.

3.2. The accounts

The present system o f accounts covers the f 0 1 lowing accounts:

1. Transact ions i n goods and se rv i ces

2 . Income d i s t r i b u t i o n :

a. Pr imary d i s t r i b u t i o n of income

b. R e d i s t r i b u t i o n of income

3. Consumption and sav ing

4. Gross cap i t a1 f o rma t i on

5. Transact ions concerning c a p i t a 1 f inance

The purpose o f the system o f accounts i s t o p rov ide a systemat ic a n a l y s i s of

t h e na tu re o f the economic a c t i v i t i e s and t o r e f l e c t the interdependence of t h e

economic phenomena. The system i s based on a c l a s s i f i c a t i o n o f economic

t r ansac t i ons by accounts and sectors. I n t he accounts the s t r e s s i s on t h e

n a t u r e o f the t ransact ions; i n t he sec to rs i t i s on t h r economic s i g n i f i c a n c r

of persons and i n s t i t u t i o n s i nvo l ved i n t h e t ransac t ions . The choice of

accounts i n the Dutch system was designed t o d i s t i n g u i s h t he p r i n c i p a l aspects

o f t he economic process.

The next sec t ions present a d e s c r i p t i o n o f the contents, sources and methods

o f t he t r a n s a c t i o n i tems on t he va r i ous accounts f o r t h e h w s e h o l d sector. The

d e s c r i p t i o n i s based on t he SNA Quest ionnai re t a b l e s f o r Housrholds and p r i v a t e

un incorpora ted en te rp r i ses .

4. The ~ r o d u c t i o n account

4.1. Cross ou tpu t and i n te rmed ia te consumption

The Dutch Wational accounts do n o t d i s t i n g u i s h a separate p r o d u c t i o n account

f o r t he household sector. I n s t e a d a combined p roduc t ion account o f t he sectors

Non- f inanc ia l co rpora te and quasi-corporate en te rp r i ses and ha iseholds

( i n c l u d i n g p r i v a t e non-prof i t i n s t i t u t i o n s ) i s pub l i shed y e a r l y (See t a b l e l ) .

On t he p roduc t i on account no d i s t i n c t i o n i s made between ou tpu t f o r sa le and

non-marketed output.

A l 1 i tems on the p roduc t i on account come a v a i l a b l e w i t h i n t he framework of

t he year l y input -output t a b l e s compi l e d by t h e Nether lands Centra1 Bureau of

S t a t i s t i c s . The main source f o r t h e input -output t ab les c o n s i s t s o f t he annual

p roduc t i on s t a t i s t i c s , which p rov ide f a i r l y d e t a i l e d s t r u c t u r a l data. The

most impor tant i n p u t and output data f o r p roduc t ion s t a t i s t i c s are co l lec ted,

as f a r as possible, i n values and q u a n t i t i r s . I n the case o f i n p u t data t h i s

app l i es t o q u a n t i t i e s o f t he main raw and a u x i l i a r y mater ia ls .

A l though the coverage o f t h e product i o n s t a t i s t i c s i s s tead i l y widening, no t

a l 1 economic a c t i v i t i e s a re as ye t covered by these s t a t i s t i c s . For v a r i w s

i n d u s t r i e s (e.g., a g r i c u l t u r e and h e a l t h services), wh i l z t h e r e are no

p roduc t i on s t a t i s t i c s , s u f f i c i e n t usable i n fo rma t i on i s nonetheless co l l ec ted .

Supplementary es t imates a re somet imes needed, brcause t h r r e i s no adequate

source of i n f o r m a t i o n f o r t he branch o f i n d u s t r y as a whole. Cross ing up i s

c a r r i e d ou t where t h e r e i s a l i m i t e d amount o f i n f o r m a t i o n (e.g., wagrs and

s a l a r i e s o r employment data) on p a r t o f a branch o f i n d u s t r y no t covered by t h e

a v a i l a b l e s t a t i s t i c a 1 source f o r t h a t branch o f indust ry . A n example o f t h i s

i s t h e p roduc t i on s t a t i s t i c s i n manufacturing, which con ta ins a c u t - o f f

p o i n t f o r sma l l e r f i r m s ( l e s s t han 10 employees).

An adjustment f r e q u e n t l y c a r r i e d out i n c e r t a i n sec to rs i s the convers ion o f

data on a f i n a n c i a l year t o da ta t h a t r e l a t e t o a calendar year. Cor rec t ions

a re a l s 0 made t o r e t u r n s from t h e c o l l e c t i o n phase, e.g., r e v a l u a t i o n o f s tocks

and compensat i o n f o r underrepor t i n g r e s u l t i n g f o r example f rom f raud.

The main p l a u s i b i l i t y checks a re conf rontat ions by branch o f supply and

d i s p o s i t i o n of commodities, and the p a r t y changes i n value, p r i c e and quant: t y

da ta and changes i n i n d i c a t o r s such as p roduc t ion p e r man year and compensation

o f employees pe r employee (wage rate).

The da ta on impor ts and expor ts are taken from t h r Dutch f o r e i g n t r a d r

s t a t i s t i c s . I n es t ima t i ng expo r t s pe r branch o f i ndus t r y use i s a l s o made of

data f rom produc t ion s t a t i s t i c s on the bas is of f i r m s ' i nvo i ces t o customers

abroad. Est imates o f expor ts o f se rv ices p e r branch of i n d u s t r y a re bascd

p a r t l y on data from t h e p roduc t i on s t a t i s t i c s and p a r t l y on data f rom De

Nederlandsche Bank N.V. (Dutch cen t ra1 bank).

4.2. Components o f va lue added

The i tem i n d i r e c t taxes ( t a b l é 1, l i n e 7) records the taxes p a i d by en te r -

prises, w i t h t he excep t ion o f taxes l e v i e d on company p r o f i t s . Operat ing

surpluses of p u b l i c e n t e r p r i s e s which occupy a monopo l i s t i c p o s i t i o n (e.g.,

na tu ra1 gas product i o n ) a re no t rega rded as i n d i r e c t t axes.

Subsid ies ( t a b l e 1, l i n e 8) i n c l ude a l 1 grants on cur ren t account which

p r i v a t e and p u b l i c e n t e r p r i s e s rece ive from Government. They i nc l ude t h e

subs id ies o f the A g r i c u l t u r a l E a u a l i s a t i o n Fund and the subs id ies on fuel ,

sh ips and s o m o t h e r products. Subsidies a l so i nc l ude subs id ies on p u b l i c

t r anspo r t and wage subsidies. Rent reduc ing subs id ies a re a l s o included, i n

p a r t i c u l a r the c o n t r i b u t i o n s t o t he opera t ion o f H w s i n g Act houses and t o t h e

opera t ing d e f i c i t s o f new p r i v a t e houses. Payments a r i s i n g from t h e

Con t r i bu t i on Regu la t ion f o r House b u i l d i n g and the c o n t r i b u t i o n s t o t he cos t of

improvement and d i v i s i o n o f e x i s t i n g houses, on t he o the r hand, a re c l a s s i f i e d

as capi t a l t ransfers .

The amount o f t he subs id ies granted by the A g r i c u l t u r a l E q u a l i s a t i o n Fund i s

n o t necessar i l y equal t o the d i f ference between t he expendi t u r e and r e c e i p t s of

t h i s fund. The va lue o f the changes i n stock, h e l d by the fund, and t h e p r o f i t s

and losses a r i s i n g f rom p r i c e changes o f e x i s t i n g s tocks ( t h a t is, of s tocks i n

ex is tence a t the beg inn ing as wel1 as the end of the p e r i o d i n review) a r e not

inc luded i n c a l c u l a t i n g t he subsidy, These s tocks a re c l a s s i f i e d as s tocks of

enterpr ises, imp l y i ng t h a t the A g r i c u l t u r a l E q u a l i s a t i o n Fund, so f a r as stock

f o rma t i on i s concerned, i s regarded as a p u b l i c en te rp r i se .

Lev ies on m i l k production, food etc. a re t r e a t e d as negat ive subsidies.

The concept o f subs id ies i s l i m i t e d t o the ca tegor ies mentioned above and

has not been f u r t he r extended. Gove rnment c o n t r i b u t ions t o p r i v a t e non-prof i t

i n s t i t u t i o n s a re c l a s s i f i e d as cur ren t t r a n s f e r s t o the household sector.

Consumption o f f i x e d cap i t a1 by non- f inanc ia l en te rp r i ses (corporate,

quas i -corporate and un incorporated) ( t a b l e 1, l i n e 9) i s es t imated by means o f

t h e so-ca l led "perpetua l i nven to ry method". Th is mrthod s t a r t s w i t h t he

de te rmina t ion of t he gross c a p i t a 1 stock. This i s achieved by accumulat ing t he

gross f i x e d c a p i t a 1 f o rma t i on of non- f inanc ia l en te rp r i ses p e r type o f cap i t a1

good over a sequence o f years t h a t equals the supposed s e r v i c e l i f e (!J) of

these c a p i t a 1 goods, af t e r r e v a l u a t i o n a t a c t u a l p r i ces . Every year t, af t e r

reva luat ion, t h e new f i x e d c a p i t a 1 fo rmat ion i s added and t h e f i x e d c a p i t a 1

fo rmat ion o f year t-t4 i s subtracted. By app ly ing a r a t e of d e p r e c i a t i o n t o

every k i n d of asset - the i nve rse of t he supposed se rv i ce l i f e o f the asset i n

ques t i on - an es t ima te o f consumption of f i x e d c a p i t a 1 i n year t i s obtained.

I n consequence o f t he method fol lowed, no separate i n f o r m a t i o n on consumption

o f f i x e d c a p i t a 1 i s a v a i l a b l e f o r p r i v a t e un incorporated en te rp r i ses .

The i tem Compensation of employees ( t a b l e 1, l i n e 10) i s desc r ibed below

(see s e c t i o n 5.1.).

Operat ing su rp l us ( t a b l e 1, l i n r 11) i s der i ved as a r e s i d u a l i t e m on the

p roduc t i on account and comprises t h e opera t ing su rp lus o f corporate, quas i -

co rpora te and u n i ncorporated e n t e r p r i ses.

As i s descr ibed above, i n f o r m a t i o n on production, i n t e rmed ia te consumption

o f raw and a u x i l i a r y mater ia ls, o t he r costs and components o f va lue added of

p r i v a t e un incorpora ted e n t e r p r i s e s i s est imatad u i t h i n t he framework o f an

inpu t -ou tpu t tab le . Th is impl ies, consequently, t h a t a t t h e moment no separate

i n f o rma t i o n f o r p r i v a t e un incorpora ted en te rp r i ses on t he above ment ioned

i tems on t he p roduc t i on account i s a v a i l a b l e i n t h e Nether lands N a t i o n a l

accounts.

4.3. Owneroccup ied housing and own account cap i t a1 fo rmat ion

Regarding t he es t imate of owner-occupied housing i t can be observed t h a t the

imputed output corresponds t o gross rent . The p roduc t i on i s computed by

m u l t i p l y i n g a volume component by a p r i c e f o r s r v e r a l ca tegor ies o f houses. The

volume component i s based on i n f o r m a t i o n frcnn t h e Housing demand survey

( l a t e s t : 1981). The i n f o r m a t i o n f rom t h e l a t r s t survey i s updated by mcans o f a

r e g i s t r a t i o n o f changes i n t h e s tock o f dwe l l i ngs by m u n i c i p a l i t i e s . The

f i g u r e s a re then co r rec ted us i ng a l o c a l government e s t i m a t i o n o f the number of

un i nhab i t ed houses.

The p r i c e component of the r e n t a l va lue of owner-occupied hous ing c o n s i s t s

of t h e average conputed r e n t o f owner-occupied duel l i n g s per category. Th i s

computed r e n t i s a good dea l h i ghe r than t he r e n t f o r t he average ren ted

dwel l ing. Th is has two reasons:

- t h e q u a l i t y o f owner-occupied dwe l l i ngs i s r e l a t i v e l y high;

- the imputed r e n t r e f l e c t s t h e f r e e market p r i ce . Th i s f r e e market p r i c e

cannot i n genera1 be equa l i zed w i t h t he a c t u a l r e n t p a i d f o r r e n t a l houses

due t o Government r e g u l a t ions.

The computed r e n t f o r owneroccup ied houses i s r a i s e d y e a r l y by a c e r t a i n

percentage. Th is increment i s equa l t o the i n c r r a s e i n t h e f r e e market r e n t o f

comparable ren ted dwe l l i ngs p l u s an increase due t o improvements on t h e houses.

I n t e rmed ia te consumption by owner-occupied housin9 i s est imated on t he bas i s

o f the re l evan t expendi t u r e of h w s i ng assoc ia t ions. Government sources a re

used t o determine amounts f o r i n d i r e c t taxes (mainly tax on imrnovables and

polder-board lev ies) .

Own account cap i t a1 fo rmat ion covers t he p roduc t i on of a l 1 goods by

en te rp r i ses f o r t h e i r own use which fa11 under t he n o t i o n o f cap i t a1 format ion.

Th is c a p i t a l f o rma t i on i s valued a t t he cos t o f product ion. As i s mcntioned

before, no separate i n fo rma t i on on own account c a p i t a 1 fo rmat ion of p r i v a t e

un incorpora ted e n t e r p r i ses i s ava i lab le .

5. The income and ou t l ay account

5.1. Compensat i o n o f employees

Compensation of employers ( t a b l e 2, l i n e 1) covers a l 1 earn ings o f r es i den t

employees. A l 1 persons i n p a i d employment of p r i v a t e o r p u b l i c enterpr ises, of

Government, etc., o r o f households (domestic employees) and p r i v a t e non-pro f i t

i n s t i t u t i o n s (persons employed by associations, religieus i n s t i t u t i o n s , etc.)

a re c l a s s i f i e d as employees. They include, o f course, no t o n l y opera t i ves but

a l s 0 the technica l , a d m i n i s t r a t i v e and superv is ing s t a f f .

The s a l a r i e s o f company managing d i r e c t o r s are a l s o inc luded i n the wagr

b i l 1 (exc lud ing t h e i r income from, e.g., shares o r founders' shares). l.lembers

of a household t a k i n g p a r t i n t he e n t e r p r i s e o f t h r head of the household are

no t regarded as employees un less a labour con t rac t i s express ly concluded. The

ent repreneur 's income ( t h a t is, the est imated o r imputrd wages o r s a l a r i e s o f

the entrepreneur f o r labour performed by him i n h i s own e n t e r p r i s e ) i s n o t

inc luded i n the wage b i l l .

Wages and s a l a r i e s a l s0 comprise var ious supplemrntary payments, e.g.,

g r a t u i t ies , bonuses, over t ime pay, t i p s and commissions, as wel l as supp l ies i n

k i n d (f ree residence, f r e e food, etc.). The wage tax and employees' c o n t r i -

bu t ions f o r s o c i a l s e c u r i t y a re n o t deducted from the amount o f wages and

sa la r ies , The pay o f consc r i p t s t o t he armed fo rces i s a l s o included; "bread-

winners" compensation, however, i s regarded as a cur ren t income t r a n s f e r t o

households. So f a r as members o f t he armed fo rces a re concerned, the supply o f

food and c l o t h i n g a re i nc l uded and lodg ing i n the case o f permanent o f f i c i a l

dwe l l i ngs f o r r egu la r s o l d i e r s and members of t h e i r fami l ies . Income i n k i n d of

c i v i l i a n employees covers lodging, un i fo rm c l o t h i n g and food p rov ided by t h e

Government. Wages and s a l a r i e s of persons employed by s o c i a l s e c u r i t y funds a re

a l s 0 included. Wages and s a l a r i e s rece ived from the r e s t o f t he wo r l d re la te ,

i n t e r al ia, t o t he rewards o f Nether lands f r o n t i e r workers and o f Nether lands

res iden t s employed by non-resident en te rp r i ses . I t should be no ted t h a t these

amounts do no t always show accu ra te l y t he value of t he serv ices rendcred by t he

person concerned i n respect o f h i s f o r e i g n employment. Th is i s due t o t h e

l i m i t e d bas ic da ta ava i lab le . I n many cases, the f i g u r e s r e l a t e on ly t o t he

amounts which are a c t u a l l y r e m i t t e d t o t h e Nether lands (on a cash bas is) .

Employers' c o n t r i b u t i o n s f o r s o c i a l secu r i t y ( t a b l e 2, L ine 3) i n c l u d e

premiums p a i d by employers due t o labour disablement insurance, s ickness

insurance, s ickness costs insurance, unemploymtnt insurance, insurance aga ins t

t he r i s k o f unrmployment due t o weather condit ions, c h i l d r e n ' s al lowance

insurance and vo lun ta r y advanced re t i r emen t schemes. Employrrs ' c o n t r i b u t i o n s

f o r s o c i a l s e c u r i t y a l s o i n c lude premiums p a i d by rmploycrs t o I n d u s t r y

Assoc ia t ions t pens ion funds, company pension funds, c o l l e c t i v e pensions

admin is tered by l i f e insurance companies, t h e Genera1 C i v i l Pension Fund,

t h e Pension Fund o f P u b l i c Corporat ions Food Supply, the Rai lway Pension Fund

and t h e Genera1 Miners Fund.

A d d i t i o n a l c u r r e n t t r a n s f e r s by Centra1 oovernment t o s o c i a l s e c u r i t y funds are

n o t i n c luded i n soc i a l secu r i t y c o n t r i but ions.

Employers' c o n t r i b u t i o n s f o r p r i v a t e pension and we l f a re p lans ( t a b l e 2,

l i n e 4 ) i n c l u d e payments accord ing t o the f a m i l y al lowance r e g u l a t i o n f o r c i v i l

servants, con t inued payment o f wages and s a l a r i e s o f employees no t i nsu red

accord ing t o t h e Sickness B e n e f i t s Act, t h e I n te r im - regu la t i on f o r cos ts of

s ickness and d i r e c t payments accord ing t o vo lun ta ry advancrd re t i rement

schemes.

Employers' c o n t r i b u t i o n s f o r p r i v a t e pension and we l f a re p lans a l c o i nc l ude

pensions p a i d d i r e c t l y out o f t h e p r o f i t s o f enterpr ises, government

c o n t r i b u t i o n s f o r m i l i t a r y pensions and unemployment b e n r f i t s t o former c i v i l

servants, t o former employees o f soc i a l insurance i n s t i t u t i o n s and t o forme r

employees o f p u b l i c en te rp r i ses .

I n f o r m a t i o n on compensation of employees i s der i ved from va r i ous sources.

Main sources a r e t h e annual p roduc t i on s t a t i s t i c s and a d m i n i s t r a t i v e sources,

such as "bed r i j f s ve ren ig i ngen " ( Indus t ry Associations, among o t h e r t h i ngs

respons ib l e f o r c o l l e c t i n g s o c i a l insurance c o n t r i b u t i o n s ) and o the r i n s t i -

t u t i o n s i n the f i e l d o f s o c i a l secur i t y . I n a d d i t i o n a number o f wages

s t a t i s t i c s a r e used, no tab l y f o r t he es t ima t i on of f i g u r e s f o r recen t years.

Compensation of employees i s est imated w i t h i n the framework of t h r yea r l y

i n p u t - w t p u t t a b l r s (See above). The i t em i s computed i n connect ion w i t h an

es t imate of the number o f employees by k i n d of economic a c t i v i t y . For some

branches of i n d u s t r y the bas i c data are ad justed t o compensate f o r under-

repor t ing. For t he v a l u a t i o n o f payments i n k i n d f i s c a l standards a re

sus ta i ned. Compensat i on o f employees rece ived by res iden t households i S

ca l cu la ted as the sum of compensation of employees p a i d by domestic sec to rs

p l u s n e t wages and s a l a r i e s rece ived frm the r e s t of t h r world.

I n p r i n c i p l e i t i s poss ib l e t o es t imate a breakdown o f compensation o f

employees by socio-economic g r w p s of households u s i ng i n fo rma t i o n f rom

S t a t i s t i c s of personal income and w r a l t h (See appendix B).

5.2. Proper ty and e n t r e p r e n e u r i a l income

En t rep reneu r i a l income f rom p r i v a t e un incorporated en te rp r i ses ( t a b l r 2,

l i n e 51 cons is ts o f a rough es t imate o f en t rep reneu r i a l income of a l 1 p r i v a t e

un incorporated e n t e r p r i ses (i nc l ud ing owner-occupied housing), i. e. an e s t imate

of opera t ing surp lus less an es t imate of n e t p roper ty income payable. Th i s

es t imate is, i n t e r a l ia , based on i n fo rma t i on concerning the number o f p r i v a t e

un incorporated e n t e r p r i s e s by k i n d o f economic ac t i v i t y and on employment data

on these enterpr ises. I n t h i s way the share of p r i v a t e un incorporated en te r -

p r i s e s i n the opera t ing surp lusses o f t he v a r i ous a c t i v i t i e s d i s t i n g u i s h e d i n

the input -output t ab les i s . assessed. The Nether lands Wat ional accounts do no t

as ye t d i s t i n g u i s h quasi-corporate e n t e r p r i ces owned by p r i v a t e households.

I n t e r e s t covers a l 1 ac tua l i n t e r e s t payments. With one exception, f l o u s o f

i n t e r e s t do n o t i nc l ude any k i n d o f imputed i n te res t , l i k e i n t e r e s t on reserves

o r p rov i s i ons o f companies. N e i t h e r do t h r y i nc l ude any reimbursements p a i d by

un incorporated p u b l i c e n t e r p r i s e s on loans p rov ided by t h e government agency

i t s e l f . The l a t t e r payments a re regarded as withdrawn p r o f i t s r a t h e r than

i n t e r e s t payments. The one excep t ion i s t he i n p u t a t i o n o f i n t e r e s t i n respect

o f the household equ i t y i n l i f e insurance reserves and pension funds.

I n t e r e s t payments i n t h e Nether lands Na t i ona l accounts a re recorded on an

accrua l basis. Consequently, t he payments a re entered i n t o the accounts as of

t he date they r e l a t e to, un less t h e r e a re s t a t i s t i c a 1 o r techn ica1 o b s t r u c t i o n s

f o r doing so (e.g., i n t e r e s t payments t o and from the r e s t o f the world).

I n t e r e s t p a i d by households ( t a b l e 2, l i n e 20) i s e s t i n a t e d on i n f o r m a t i o n

f rom f i n a n c i a l i n s t i t u t i o n s ( r e t a i l banks and o ther money-creating

i n s t i t u t i o n s , savings banks f i nance companies, mun i c i pa l and semi-municipal

c r r d i t banks, and l i f e insurance companies), toge ther u i t h s t a t i s t i c s of

consumer c r e d i t and o f i n s ta lmen t c red i t . I n t e r e s t p a i d on mortgages j u s t as

i n t e r e s t p a i d by p r i v a t e un incorpora ted en te rp r i ses i s n o t i nc l uded here,

because, as i s mentioned above, t h i s k i n d o f i n t e r e s t payment i s deducted from

ope ra t i ng su rp l us o f p r i v a t e un incorpora ted en te rp r i ses and owner-occupied

housing be fo re t h i s income reaches t he household sector.

Ac tua l i n t e r e s t rece ived by hwseho lds and p r i v a t e n o n - p r o f i t i n s t i t u t i o n s

( t a b l e 2, l i n r 7) i s de r i ved as a r e s i d u a l i t em i n t h e income and o u t l a y

accounts. Besides income t a x returns, which a re known f o r underrepor t ing, t h e r e

are, however, no e x t e r n a l checks f o r compa r i son.

Imputed i n t e r e s t on e q u i t y i n l i f e insurance and pens ion funds i s computed

from i n f o r m a t i o n from l i f e insurance companies and pens ion funds.

Dividends, n e t land r e n t and r o y a l t i e s ( t a b l e 2, l i n e s 8 and 21) encompass

a l 1 o the r farms o f p rope r t y income rece i ved and p a i d by hwseho lds and p r i v a t e

non-prof i t i n s t i t u t ions. Net land r e n t and r o y a l t i e s p a i d by households a re

n e t t e d aga ins t n e t land r e n t and r o y a l t i e s rece ived by them.

Dividends, n e t land ren t and r o y a l t i e s a re recorded as o f t h e da te they a re due

t o be paid. Net r e n t s r ece i ved by hwseho lds i n respect o f l e t o f dwe l l i ngs and

o t h e r durables a re i nc l uded i n e n t r e p r e n e u r i a l income from p r i v a t e un incor -

po ra ted en te r p r i ses.

The t o t a l o f dividends, n e t land r e n t and r o y a l t i e s rece ived by households i s

es t imated as a r e s i d u a l i t e m f rom t h e corresponding f lows o f a l 1 o t h e r

sectors. A t p resent i t i s no t p o s s i b l e t o subd iv ide t he f low o f dividends, n e t

l and r e n t and r o y a l t i e s int0 separate f l ous .

I n p r i n c i p l e i t uou ld he p o s s i b l e t o es t imate a breakdown o f p r o p e r t y and

e n t r e p r e n e u r i a l income by socio-economic groups o f households u s i n g i n f o r m a t i o n

from income d i s t r i b u t i o n s t a t i s t i c s (See appendix B).

5.3. Casual ty insurance t r ansac t i ons

Casuatty insurance t r ansac t i ons cons i s t o f premiums t o and c la ims on casuat ty

insurance conpanies. The s e r v i c e charge of casual ty insurance compani es i S

c a l c u l a t e d as t he d i f ferance betueen the premiums rece ived and t he c la ims p a i d

du r i ng a year. The s e r v i c e charge consumed by hwseho lds and p r i v a t e non-prof i t

i n s t i t u t i o n s i n t h e Nether lands N a t i o n a l accounts i s made equal t o t he

d i f f e r e n c e between t h e premiums p a i d by them and the c la ims rece i ved by them.

Consequently, the n e t premiums p a i d by households and p r i v a t e non -p ro f i t

i n s t i t u t i o n s ( t a b l e 2, L ine 29 ) are equaL t o the c la ims rece ived by them

( t a b l e 2, l i n e 10).

Net premiums and c la ims i n respect o f casual ty insurance a re r rco rded when

they a re due t o be paid. Premiums and c la ims i n respect o f casua l t y insurance

a re est imated from i n f o r m a t i o n on n o n - l i f e insurance companies.

A breakdown by socio-economi c groups o f households o f casua l t y i nsurance

t r ansac t i ons does no t seem p o s s i b l e u i t h i n the near f u t u re . I n addi t ion, i t

should be observed t h a t t he p resen t system of accounts i n t h e FJetherlands does

no t r eco rd ne t premiums and c la ims i n respect o f casua l t y insurance e x p l i c i t l y .

5.4. D i r e c t taxes and s o c i a l secu r i t y c o n t r i b u t i o n s

S o c i a l secur i t y c o n t r i b u t i o n s ( t a b l e 2, l i n e 23) comprise a l l c o n t r i b u t i o n s

by employers and hwseho lds t o s o c i a l s e c u r i t y funds. They i n c l u d e premiums

pursuant t o disablement insurance, unemployment insurance, insurance aga ins t

t he r i s k of unemployment due t o weather condit ions, s ickness insurance,

s ickness cos ts insurance, t he General O l d Age Pensions Act, the General Widows'

and Orphans' Pensions Act, Fami l y A l louances Acts and r e g u l a t i o n s f o r vo lun ta r y

advanced r e t i rement. Employees' c o n t r i b u t i o n s t o t h e pension scheme f o r

members of t h e armed fo r ces a re a l s 0 inc luded i n s o c i a l s e c u r i t y c o n t r i -

b u t ions. Supplement a ry payment s made by Centra1 government t o s o c i a l secur i t y

funds a re no t i n c l u d e d i n s o c i a l s e c u r i t y con t r ibu t ions , but are regarded as

o t h e r cur ren t t r a n s f e r s from Centra1 government t o s o c i a l s e c u r i t y funds.

I n f o r m a t i o n on s o c i a l s e c u r i t y c o n t r i b u t i o n s i s ob ta ined from the var ious

soc i a l secu r i t y funds, t he Soci a l Insurance Dank, t he Soci a l Insurance Counci L,

t h e Hea l t h Insurance Fund Counc i l and s i m i l a r i n s t i t u t i o n s .

D i r e c t taxes on income ( t a b l e 2, l i n e 25) c o n s i s t o f income tax, Wase tax,

d i v i dend tax and l o t t e r y tax. Other d i r e c t taxes ( t a b l e 2, l i n e 26) c o n s i s t

o f i n h a b i t e d house tax, motor v e h i c l e tax, t ax on immovables, p rope r t y tax, non-

res idence tax and l e v i e s on the p o l l u t i o n of water. D i r e c t taxes a re recorded

i n t he accounts as o f the date o f payment (i.e. on a cash bas is) .

Fees, f i n e s and pena l t i e s ( t a b l e 2, l i n e 27) cover such payments by

hwseho lds t o p u b l i c a u t h o r i t i e s l i k e fees f o r schools, u n i v e r s i t i e s and

examinations, dop-licences, f i n e s and var ious dut ies. A l 1 i n f o r m a t i o n on d i r e c t

taxes and on fees, f i n e s and p e n a l t i e s i s de r i ved f rom Government sources

( a d m i n i s t r a t i v e accounts and budgets).

A breakdown by socio-economic groups o f households o f d i r e c t taxes and

s o c i a l secu r i t y c o n t r i b u t i o n s cou ld be made u s i n g i n fo rma t i o n f run income

d i s t r i b u t i o n s t a t i s t i c s (See appendix B).

5.5. Other cu r ren t t r a n s f e r s

Soc ia l s e c u r i t y b e n e f i t s ( t a b l e 2, l i n e 11) comprise a l 1 b e n e f i t s rece ived by

res iden t households from s o c i a l s e c u r i t y funds. These b e n e f i t s i nc l ude payments

according t o d i sab lement insurance, unemploymrnt insurance, insurance aga ins t

the r i s k o f unemployment dua t o weather condi t ions, s i ckness i nsurance, t h e

Hea l th Insurance Fund Act, the Genera1 O ld Age Pensions Act, t he Genera1

Widows' and Orphans' Pensions Act, Fami l y A l lowances Acts, r egu la t i ons f o r

vo lun ta ry advanced r e t i rrment schemes and t h a t p a r t o f m i li t a r y pensions t h a t

i s f i nanced by employees' con t r i bu t i ons . I n fo rma t i on on s o c i a l s e c u r i t y

bene f i t s i s de r i ved from s o c i a l s e c u r i t y funds, the S o c i a l Insurance Bank, the

Soc ia l Insurance Council, t h e Hea l t h Insurance Fund Counci l and o the r s o c i a l

insurance i n s t i t u t i o n s .

S o c i a l ass is tance g ran ts ( t a b l e 2, l i n r 12) c o n s i s t o f cash g ran ts by

p u b l i c a u t h o r i t i e s t o households, such as spec ia l pensions t o war v ict ims, a i d

t o emigrants, study grants, separa t ion allowances and demob i l i sa t i on payments,

payments t o p a r t i c i p a n t s o f workshops f o r vocat i o n a l t ra in ing , i n d i v i d u a l r en t -

assistance, paymrnts accord ing t o the Genera1 Ass is tance Act, the Unemployment

P rov i s i ons Act, t h e S o c i a l Workshops Act and t h e A r t i s t s ' Regulation, and

d i r e c t payment o f pensions by the Government (exc lud ing m i l i t a r y pensions). A l 1

i n fo rma t i on on s o c i a l ass is tance g ran ts i s der i ved from Government sources.

Unfunded employee pension and wel fare b e n e f i t s ( t a b l e 2, l i n e 13) i n c l u d e

pensions p a i d d i r e c t l y out o f p r o f i t s of enterpr ises, m i l i t a r y pensions

f inanced d i r e c t l y by Government as former emp loyer, unemp loyment benef i t s t o

former c i v i l servants, t o former employees o f s o c i a l insurance i n s t i t u t ions and

t o former employees o f pub li c e n t e r p r i sas, payments accord i ng t o t h e fami l y

allowance r e g u l a t i o n f o r c i v i l servants, cont inued payment o f wages and

s a l a r i e s of employees not i nsu red accord ing t o t he S i ckn rss B e n e f i t s Act, t he

I n te r im - regu la t i on f o r costs o f s ickness and d i r e c t payments accord ing t o

vo lun ta ry advanced re t i r emen t schemes. Th i s i t em i s equal t o t he employers'

c o n t r i b u t i o n s f o r p r i v a t e pens ion and we l fa re plans.

Tha imputed employee pension and we l f a re c o n t r i b u t i o n s ( t a b l e 2, l i n r 33)

are, by def i n i t i o n , equal t o employers' c o n t r i b u t i o n s f o r p r i v a t e pens ion and

we l fa re p lans ( t a b l e 2, l i n e 4 ) .

Trans fe rs from genera1 governmrnt ( t a b l e 2, l i n e 14) c o n s i s t o f payments

t o households accord ing t o t h e Savings scheme f o r C i v i l Servants, t h r Savings

Act f o r Juven i l es and t he Genera1 Savings Act 1971. T rans fe rs f rom genera1

government i n t a b l e 2 a l s 0 i n c l u d e cu r ren t t r a n s f e r s made by genera1 gavemment

t 0 p r i v a t e non-p ro f i t i n s t i t u t i o n s , because these i n s t i t u t i o n s a re i n c l u d e d i n

t he h w s e h o l d sector. A l t i n f o rma t i on on t r a n s f e r s from genera1 Governmnt i S

drawn f rom Gove rnment sources.

T rans fe rs from t h e r e s t o f the w o r l d ( t a b l e 2, l i n e 15) inc lude, i n t e r

a l ia , remi t tances f rom the r e s t of t h e wor ld f o r suppor t o f members of t h e

fami l y and benef i t s f rom f o r e i g n s o c i a l s e c u r i t y funds. T rans fe r s t o t he r e s t

o f t he w o r l d ( t a b l e 2, L ine 31) include, i n t e r al ia, remi t tances t o t h e r e s t of

t he wo r l d f o r maintenance o f members of t h e fami ly, s tudy grants, school fees

and c o n t r i b u t i o n s t o nu rs i ng costs. T rans fe rs t o and from t h r r e s t o f t h e wo r l d

a re recorded as o f t he date they a re made. I n f o r m a t i o n on these t r a n s f e r s i s

ob ta ined f rom t h e Balance of payments compi l e d by De Nederlandsche Bank rlV.

T rans fe r s t o p r i v a t e n o n - p r o f i t i n s t i t u t i o n s s e r v i n g households ( t a b l e 2,

l i n e 30) are n i l i n t a b l e 2, because, s i nce these i n s t i t u t i o n s a re i n c l u d e d i n

t he household sector, t h i s i t em i s conso l ida ted w i t h i n t h i s sector.

Other cu r ren t t r a n s f e r s (except imputed) p a i d by houscholds cons i s t of,

i n t e r a l ia , t h e proceeds of t h e S t a t e L o t t e r y and r e t e n t i o n o f Excep t i ona l

Medi c a l Expenses Ac t benef i t s of p e n i t e n t i a r y pa t i en t s .

Other cu r ren t t r a n s f e r s cou ld be broken down by socio-economic groups o f

households us i ng i n f o r m a t i o n from s t a t i s t i c s on t he d i s t r i b u t i o n o f income and

o the r s w r c e s (See e.g. appendix B).

5.6. F i n a l consumpt i o n expendi t u r e and ne t saving

F i n a l consumption expendi ture of households and p r i v a t e non -p ro f i t

i n s t i t u t i o n s ( t a b l e 2, l i n e 18) include, f i r s t l y , purchases o f goods and

serv ices by households from enterpr ises, valued a t r e t a i l p r i ces . T h i s i s by

f a r the most impor tant p a r t o f p r i v a t e f i n a l consumption expenditure. I t

covers, i n pa r t i cu l a r , purchases made i n shops and departmrnt s t o res and from

o ther suppl iers, payments f o r t he serv ices of c r a f t s and trades, expendi ture i n

hotels, restaurants, cafes, expend i tu re on t r anspo r t se rv i ces and on

entertainment, etc. P r i v a t e f i n a l consumption expendi ture a l s 0 i nc l udes

payments f o r medica1 and domestic services, etc. and paymrnts f o r the

admini s t r a t i v e expenses o f li f e i nsurancr compani es and pension funds. The

admini s t r a t i v e expenses o f soc i a l insurance are, however, regarded as cu r ren t

expendi t u r e by t h e soc i a l secu r i t y funds.

The est imated value o f food, lodg ing and clothing, p rov ided by employers, i s

inc luded i n f i n a l consumption expenditure. Rents p a i d by tenan ts o r imputed t o

owner-occupied duel li ngs a l s0 e n t e r i n t o household consumpt ion.

I n t h e Nether lands goods produced f o r home consumption are on l y impor tant i n

ag r i cu l t u re . They are valued a t t he p reva i l i n g p r i c e s f o r s im i l a r p roduc ts so ld

t o t h i r d p a r t i e s ( t h a t is, a t t he value ex-farm). I t i s o b v i a i s l y necessary t o

make d i s t i n c t i o n s he re, p a r t i c u l a r l y i n cases where t he re i s no re l evan t p r i ce

and the value i s t h e r e f o r e d i f f i c u l t t o def ine. Goods produced by t he consumrr

h imse l f i n and f o r the express use o f h i s own household a re as a r u l e i nc l uded

n e i t h e r i n n a t i o n a l product ion, nor i n consumption. Th is app l i es t o t h e

ac t i v i t i e s o f housewives i n t h e i r households and a l s 0 t o t he produce of

al lotments.

P r i v a t e f i n a l consumpt i o n rxpendi t u r e covers durable as we l l as non-durab l e

goods. Durable goods, e.g. f u rn i t u re , audio-v isual equipnent, cars, etc.,

bought by households, a r e thus regarded n o t as investment goods, b u t as

consunption goods and they appear as such i n t he accounts a t t h e i r f u l l p r i c e

i n the year i n which the purchase was made. Th is does no t apply t o houses and

land: Expenditure on these i tems i s regarded as c a p i t a l accumulat ion and n o t as

consumpt ion. Durable consumer goods bought by i n s talments, o r on hire-purchase

con t rac ts are i nc l uded i n t h e expendi ture of t he p e r i o d i n which d e l i v e r y took

place.

Consumption goods b w g h t by households f o r stock fo rmat ion are includrd, a t

t h e i r f u l l value, i n t he expendi t u r e of t he year they were bought.

Money g i f t s a re regarded as cu r ran t t r a n s f e r s (or, e.g., i n t h e case of war-

damage compensat ion, as capi t a l t r ans fe r s ) . The va lue o f consunpt i o n goods

bought w i t h them i s inc luded i n p r i v a t e f i n a l consumption expenditure. I n the

case o f g i f t s i n kind, t he value of the goods g iven can be regarded, e i t h e r as

consumption o f the g i v i n g o r t h e rece i v i ng par ty . I n so f a r as the g i f t s are

made w i t h i n t he household sector, t h i s does na t a f f e c t the c a l c u l a t i o n of t he

t o t a l consumption o f t h i s sector. Where g i f t s from o t h e r sec to rs t o households

a re concerned, the genera1 procedure i s t o assume an income t r a n s f e r between

t he re l evan t sec to r and the household sec to r and t o add t h e Same amount t o t he

consumption of the l a t t e r s e c t o r ( t h i s applies, f o r example, t o g i f t s i n k i n d

from abroad). The expend i tu re on food f o r persons i n p r i sons and i n s t i t u t i o n s

i s t r e a t e d as goverment f i n a l consumpt i o n expendi ture.

P r i v a t e f i n a l consumption expend i t u r r i s est imated i n the Neth r r lands

N a t i o n a l accounts u s i n g the commodity-flow method. I n s e c t i o n 8.1. t h r

e s t i m a t i o n method w i l t be descr ibed more profoundly.

Net sav ing ( t a b l e 2, l i n r 34) i s der i ved as a r e s i d u a l i t em on t he incorne

and ou t l a y account.

6. The cap i t a1 accumulat ion account

The c a p i t a l accumulat ion account ( t a b l e 3 ) r r l a t r s on ly t o households, s ince

the cap i t a1 accumulation t r ansac t i ons of p r i v a t e non - f i nanc ia l un incorpora ted

en te rp r i ses and p r i v a t e non -p ro f i t i n s t i t u t i o n s a re inc luded i n t h r e n t e r p r i s e

sector. Consurrption o f f i x e d capi t a l , gross cap i t a1 formation, purchases of

land and i n t a n g i b l e s are not ava i l a b l e separate ly f o r p r i v a t e un incorporated

en te rp r i ses and non -p ro f i t i n s t i t u t i o n s .

C a p i t a l t r a n s f e r s rece ived from res iden t sectors (tabCe 3, l i n e 5) i n c l ude

supplementary payments by Centra1 government f o r the cons t ruc t i on and

r e s t a u r a t i o n o f churches etc., payments by Covernment f o r t e rm ina t i ng p r i v a t e . unincorporated business enterpr ises, investment g ran ts t o n o n - p r o f i t

i n s t i t u t ions and redempt i o n money t o househo lds accord i ng t o t he l i q u i d a t i o n of

the I n v a l i d i t y and Old age insurance Acts sir ice 1967.

7. The cap i t a1 f i nance account and balance sheets

7.1. I n t r o d u c t o r y remarks

Up t o the present no separate cap i t a1 f inance accounts f o r t he household sec to r

were pub l i shed by t h e Nether lands Centra1 Bureau o f S t a t i s t i CS. Recent ly t h e

Bureau has beoun t o compile a complete se t o f f i n a n c i a l accounts f o r t h e

v a r i w s sec to r s o f t h e System o f N a t i o n a l Accounts, s t a r t i n g w i t h t he year

1977. As t o t h e compi l a t i o n o f s e c t o r a l balance sheets a t t h e Bureau o f

S t a t i s t i c s w i t h i n t he near future, no e x p l i c i t i n t e n t i o n s e x i s t .

Table 4 shows t he f i r s t t e n t a t i v c r e s u l t s o f f i n a n c i a l t r ansac t i ons f o r t h e

combined sec to r o f hwseholds, p r i v a t e non- f inanc i a l un incorpora ted e n t e r p r i s e s

and p r i v a t e non -p ro f i t i n s t i t u t i o n s f o r the years 1977-79. The f i n a n c i a l

t r ansac t i ons o f t h i s sec to r a re main ly der i ved from i n f o r m a t i o n of o the r

sectors, p r i n c i p a l l y f i n a n c i a l i n s t i t u t i o n s . For t he t ime be ing the avai l a b l ~

s t a t i s t i c a 1 data do n o t pe rm i t a separate cap i t a1 f i nance account f o r t h e

s e c t o r P r i v a t e non -p ro f i t i n s t i t u t i o n s and the sec to r Households, i n c l u d i n g

p r i v a t e non - f i nanc ia l un incorpora ted en te rp r i ses .

The da ta f o r the c a p i t a 1 f inance account f o r t he sec to r tlouseholds, p r i v a t e

non - f i nanc ia l un incorpora ted e n t e r p r i s e s and p r i v a t e non -p ro f i t i n s t i t u t i o n s

a r e gene ra l l y de te rmin rd as a r e s i d u a l i t em o f the o t h e r sectors.

7.2. A c q u i s i t i o n o f f i n a n c i a l assets

Currency and t r a n s f e r a b l e depos i t s ( t a b l e 4, l i n e 1) i n c l u d e notes and co ins

i n c i r c u l a t i o n and s i g h t depos i t s w i t h money-creating i n s t i t u t i o n s which a r e

immediately c o n v e r t i b l e i n t o t h e l e g a l tender o f t h e country w i t hou t any k i n d

o f pena l t y o r r e s t r i c t i o n , and which a r e t r a n s f e r a b l e by cheque, banker 's o r d e r

o r the l i ke . Th i s heading i nc l udes Dutch currency and t r a n s f e r a b l e depos i t s i n

Dutch f l o r i n s as we l t as notes, co ins and t r a n s f e r a b l e depos i ts i n f o r e i g n

currency. The est imates o f t he i tem currency and t r a n s f e r a b l e deposi t s i s

de r i ved from i n f o r m a t i o n o f c r e d i t i n s t i t u t i o n s .

Other depos i ts ( t a b l e 4, l i n e 2) cover a l 1 depos i ts o t h e r than t r a n s f e r -

ab le s i g h t deposits. These depos i ts cannot be u t i l i s e d a t any moment w i t hou t

r e s t r i c t i o n o r w i t hou t f i r s t be ing converted i n t o notes, o r t r a n s f e r a b l e s i g h t

deposi ts. They include, i n t e r a l ia , t ime deposits, s i g h t savings deposits, t ime

sav i ng deposi ts, f i xed term deposi ts, saving c e r t i f i cates and f o r e i g n currency

deposits. Th is i t e m i s complete ly drawn frm in fo rma t i on of c r e d i t i n s t i t u t i o n s .

B i 11s and bonds, shor t term ( t a b l e 4, l i n e 3) a r e n i l f o r t h r household

sector. I n t he Nether lands b i l l s and short- term bonds i n c l u d e t reasury b i l 1s

issued by the Dutch Government o r by f o r e i g n Governments.

Ronds, long term ( t a b l e 4, l i n e 4) i n c l u d e s e c u r i t i e s uh ich a t t he t ime of

i ssue have a m a t u r i t y o f severa l years and uh ich bear f i x e d r a t e s of i n t e r e s t .

They are as a r u l e f r e e l y negot i a b l e and quoted on t he stock exchange. Long-

term bonds a l so i n c lude mortgage bonds issued by mortgage banks f o r r e a l

estate. In format ion on Long-term bonds i s der ived from da ta on non - f i nanc ia l

corporat ions, c r e d i t i n s t i tu t ions, insurance companies, genera1 Government and

the r e s t o f the wo r l d (Balance o f payments).

Short-term loans, n.e.c. ( t a b l e 4, l i n e 6 ) are n i l as regards households,

p r i v a t e non - f i nanc ia l un incorpora ted en te rp r i ses and p r i v a t e non -p ro f i t i n s t i t u -

t ions.

Lona-term loans, n.e.c. ( t a b l e 4, l i n e 7) i n c l u d e c r e d i t s whose o r i g i n a l

matur i ty, agreed by contract, i s one year a t t he minimum. They cons i s t of,

i n t e r al ia, mortgages on r e a l e s t a t e and p r i v a t e loans. These i tems a re

est imated as a r e s i d u a l i t e m from the o the r sectors.

The heading t r ade c r e d i t and advances ( t a b l e 4, l i n e 8) i s r a t h e r hetero-

oeneous qua composi t i on . I t i n c ludes short- term t r ade c r e d i t s - resu l t i n g f ram

t he t ime lag which .occurs between the conc lus ion of c e r t a i n t r ansac t ions and the

a c t u a l r e c e i p t o f t he payments i nvo l ved -, i n t e r e s t r ece i vab le (i.e. no t y e t

rece ived i n cash), etc. Th is heading a l s 0 inc ludes changes i n reserves aga ins t

prepayments of premiums and u n s e t t l e d c la ims i n respect o f casua l t y . The

se rv i ce charge o f casua l ty insurance companies i n t he Nether lands Nat i o n a l

accounts does no t i nc l ude t h e change i n reserves aga ins t prepayment o f casua l t y

insurance premiums and u n s e t t l e d casua l ty insurance cCaims, and remains

t h e r e f o r e ou ts ide f i n a l consumption expendi ture o f households. I t i s recorded

as a p a r t o f the a c q u i s i t i o n o f f i n a n c i a l assets by households. The i tem t rade

c r e d i t and advances i s a rough e s t i n a t e o f amaints r ece i vab le by households

based on data from t h e o the r p a r t i e s ( t h e i n s t i t u t i o n a l sec to r s o f o r i g i n ) .

Net equ i t y o f households i n l i f e insurance and pension fund reserves

( t a b l e 4, l i n e 9 ) covers t he a c t u a r i a l reserves aga ins t outs tanding r i s k s

which, under a con t rac t of l i f e insurance o r pension scheme, a re es tab l i shed

i n order t o guarant re the payment o f f u t u r e claims of households. Table 5 shows

t h e de te rmina t ion o f ne t e q u i t y o f households i n l i f e insurance and pension

funds reserves Composed of a l 1 gross addi r i o n s t o t he r q u i t y and a l 1 reduc t ions

i n the equi ty . A l 1 est imates a re based on i n fo rma t i on drawn from l i f e insurance

companics, pens ion funds and t he Balance of payments.

7.3. Incur rence of l i a b i l i t i e s and n e t lend ing

Short-term loans, n.e. c. ( t a b l e 4, l i n r 11) i n c l u d e a l 1 c r e d i t s whose o r g i -

na1 matur i ty, agreed by contract , i s one year a t t h e maximum. They c o n s i s t

main ly o f s h o r t - t e m bank c red i t s . Th i s i tem i s est imated from i n f o r m a t i o n

ob ta ined from money-creating i n s t i t u t i o n s .

Long-term loans, n.e.c. ( t a b l e 4, l i n e 12) i nc l ude a l 1 c r e d i t s whose

o r i g i n a l matur i ty, agreed by contract , i s one year a t the minimum.

They cover, i n t e r a l ia , mortgages on r e a l estate, ins ta lment c r e d i t and o the r

consumer c red i t , s tudy loans and p r i v a t e loans by owners of un incorpated en te r -

p r i ses . Near ly a l l forms o f consumer c r e d i t i n the Nether lands are, accord ing

t o t h e i r o r i g i n a l duration, inc luded i n long-term loans, n.e.c.

I n f o r m a t i o n on long-term loans i s main ly obta ined from f i n a n c i a l i n s t i t u t i o n s .

The heading t r ade c r e d i t and advances ( t a b l e 4, l i n e 13) i n c l udes i tems

l i k e short- term t r ade c red i t , taxes and soc i a l secu r i t y c o n t r i b u t ions payab le,

i n t e r e s t payable, etc. Th i s i t em i s a rough es t imate of amounts payable by

household t o o the r sec to rs based on data from the i n s t i t u t i o n a l sec to r o f

rece ip t .

Other accounts payable ( t a b l c 4, l i n e 14) by households etc. a re n i l ,

o r they a re shown under t he heading t r ade c r e d i t and advances i n the case of

taxes, in te res t , and so on.

T o t a l acqu i s t i on o f f i n a n c i a l assets less t o t a l incurrence of li abi li t i e s

shows a s t a t i s t i c a t discrepancy w i t h ne t lending as determincd on tht!

cap i t a1 accumulat ion account. Th i s s t a t i s t i c a 1 discrepancy i s h i g h l y caused by

t he f ac t t h a t the t r ansac t i ons on the cap i t a1 f inance account r e l a t e t o house-

ho lds i n c l u d i n g p r i v a t e non-f i n a n c i a l un incorporated en te rp r i ses and p r i v a t e

non -p ro f i t i n s t i t u t i o n s , whereas t h e t ransac t ions on t he cap i t a1 accumulat ion

account r e l a t e t o households on ly (i .e. exc l u d i ng owner-occupied dwel l ings,

un incorporated en te rp r i ses and non-pro f i t i n s t i t u t i o n s ) . Th is imp l i es t h a t t he

s t a t i s t i c a 1 discrepancy shown on t he c a p i t a l f i nance account inc ludes ne t

lend ing o f p r i v a t e non - f i nanc ia l un incorparatcd enterpr ises, owner-occupied

housing and p r i v a t e non -p ro f i t i n s t i t u t i o n s , Net lending i s def i ned i n t h i s

connect ion as consumption o f f i x e d c a p i t a 1 p l us ne t cap i t a1 t r ans fe r s rece ived

l r s s gross cap i t a1 formation, l e s s ne t purchases o f land and l e s s n e t purchases

o f i n t ang ib l es . (Net sav ing be ing zero, by def i n i t ion.)

7.4. Conc l ud ing remarks

As observed before, the r e s u l t s f o r t h e f i n a n c i a l t r ansac t ions o f households

are n o t ye t f i n a l . The coming years est imates of f i n a n c i a l t r ansac t i ons w i l 1 be

extended fu r ther . However, a breakdown of f i nanc i a l t r ansac t ions by socio-

economic groups of households does no t seem probable w i t h i n the near f u tu re .

8. P r i v a t e f i n ö l consumption expendi ture by type

8.1. Es t ima t i on method used i n t he Ma t i ona l accounts

P r i v a t e f i n a l consunpt ion expend i tu re i n t h e Nether lands N a t i o n a l accounts was

u n t i l recen t l y es t imated us i ng exc l u s i v e l y t h e so-cal led commodi t y - f low method.

The es t imates by t h i s method a re made up o f the f o l l o w i n g pa r t s :

a. An es t ima te o f goods and se rv i ces supp l i ed by domestic producers i n t h e

domestic market (i.e. p roduc t i on less experts), which can be c l a s s i f i e d as

household goods and services. These goods and se rv i ces a r e va lued a t

producers ' p r i ces .

b. Impor ted goods and se rv i ces (c.i.f. p r i c e s ) c l a s s i f i e d as housrho ld goods

and se r v i ces.

c. Est imates o f changes i n s tocks o f household goods and serv ices.

d. Est imates o f d i s t r i b u t i v e t r ade and t r a n s p o r t mörgins.

e. Est imates o f t h e t u rnove r t a x (Value added tax), t h e s p e c i a l exc i se on

passenger cars, exc ise d u t i e s on impor ted goods and impor t dut ies .

A t t h e v a r i o u s stages i m p u r i t i e s may o r i g i n a t e i n t h e es t i na tes :

- some household goods and se rv i ces can a l s o be used up i n i n t e rmed ia te

consumption o r i n f i x e d c a p i t a 1 f o rma t i on

- est imates o f d i s t r i b u t i v e t r a d e and t r a n s p o r t margins have t o be based on

impe r fec t i n f o r m a t i o n

- i n f o r m a t i o n on s tocks i n t r ade i s s t i l l i n s u f f i c i e n t .

From 1983 a l ong w i t h t h e commodity-flow method a l s o data f rom r e t a i l t r a d e

s t a t i s t i c s and budget survey da ta are used (see s e c t i o n 8.3).

Table 6 shows p r i v a t e f i n a l consunpt ion expend i tu re i n t h e domestic market

by type. F i n a l consumption expend i tu re i n the domestic market by households

i nc l udes f i n a l consumption expend i tu re o f p r i v a t e non -p ro f i t i n s t i t u t i o n s . For

lack o f i n f o r m a t i o n a l 1 insurance cos ts a re inc luded i n misce l laneous goods and

se rv i ces ( l i n e 23).

8.2. Dispa ra t i es w i t h t h e Continuous budget survey

One of t h e aims of the Continuous budget survey c a r r i e d wt by t he Metherlands

Cent ra l Bureau o f S t a t i s t i c s , i s t o compare data frm the consumption accounts

f o r Dutch households from the budget survey w i t h in fo rmat ion on f i n a l consump-

t i o n expendi ture from t h e Na t i ona l accounts (See e.g., appendix A )

The concept o f consumption the budget survey t r i e s t o measure, t h r r e f o r e

corresponds w i t h t h a t of t h e System of Na t i ona l Accounts, whi ch def i n e s

consumption as the use o f goods and serv ices f o r non-productive ends. Goods and

serv ices no t counted as product i o n (e.g., hwsewivese se rv i ces ) a re nOt

regarded as consumption accord ing t o t h i s d e f i n i t i o n . I n some cases goods no t

in tended f o r sa le are i nc l uded i n p roduc t ion and t h e r e f o r e i nc l uded i n

consumption i n the N a t i o n a l accounts. For example, consumption by farming

f a m i l i e s o f goods produced on t h e i r own farms i s inc luded i n t he c a l c u l a t i o n of

a g r i c u l t u r a l product ion. These goods are then valued a t t he p r i c r the producer

would have rece ived from them i f they had been sold. Expenditure on consumption

a l s0 i n c ludes expendi t u r e on consumer durables, i .e. consumer goods (such as

fu rn i tu re , w i r e l ess sets, t e l e v i s i o n sets, cars f o r personal use, etc. w i t h a

Longer l i f e than consumer i tems (such as brtad, m i l k etc.). These consumer

durab l es are not, w i t h t he excep t ion o f owner-occupied dwel l ings, regarded as

c a p i t a l goods, t h a t is, no income o r dep rec ia t i on i s c a l c u l a t e d on them. I n the

case o f owner-oc cupied dwel li ngs, t he serv ices a re i n c luded under p r o d u c t i on

and consumption and a re valued by means of the r e n t payable on s i m i l a r ren ted

dwel l ings.

The concept o f consumption i n t he Mat iona l accounts comprises the

consunpt ion o f the whole res iden t populat ion. Th is imp l i es t h a t e.g.,

expendi ture on consumption by Dutch t o u r i s t s abroad i s inc luded i n consumption,

whi l e expendi t u r e by f o re i gne r s i n t he N e t h t r lands i s exc luded.

I f t h i s i s app l i ed t o t he budget survey, t he "household consumption" t o he

recorded may be def ined i n more d e t a i l as: the value o f goods and se rv i ces pur-

chased dur ing t he survey p e r i o d ( f o r t h e f u l l purchase pr ice) , the va lue of

goods and serv ices rece ived as payments i n k i n d ( f r e e use o f d w e l l i n g etc.),

the value o f consumption o f home produce and own stocks by self-employed per-

sons and the r e n t a l value o f owner-occupied dwel l ings.

Using the c o l l e c t e d data "consumption accounts" a re drawn up.

These consumption accounts exclude "non-consumption expenditure". Th i s inc ludes

d i r e c t taxes, s o c i a l insurance con t r ibu t ions , t r a n s f e r s w i t h i n t he household

sec to r (e.g., alimony, cash g i f t s ) and premiums on insurance f o r annuit ies, if

they may be regarded as household savings.

Consumption accounts a re drawn up us ing the c l a s s i f i c a t i o n s of the

Wat ional accounts system. This i s poss ib l e because t he m a t e r i a l o f t he budget

survey i s c l a s s i f i e d i n g rea t d e t a i l . Besides sampling errors, measurement

e r r o r s and process ing e r r o r s the data of some categor ies o f expendi ture a re nOt

f u l l y comparable u i t h those i n the N a t i o n a l accounts as a r e s u l t o f unavoidable

d i f f e rences between t he es t ima t i on methods of t h e Na t i ona l accounts and t h e

budget survey. The foL Lowing n a i n ca tegor i es a re i nvo l ved i n t h i s connect ion:

- the serv ices o f hospi ta ls , sanatoria, p s y c h i a t r i c i n s t i t u t i o n s etc.

- o t her h e a l t h se rv i ces

- m a t e r i a l damage

The qroup of a r t i c Les e n t i t l e d "Servi ces of hospi tals, sanatoria, psychia-

t r i c i n s t i t u t i o n s etc." i n the budget survey r r f e r s t o household h e a l t h insu-

rance c o n t r i b u t i o n s (exc lud ing t he a d m i n i s t r a t i v e costs i nvo l ved i n these

con t r ibu t ions , which f a11 under the i t em "Insurance services") . I n t h e case of

households f o r whom h e a l t h insurance i s compulsory, b o t h employee's and

empLoyerts c o n t r i b u t i o n s a re taken i n t 0 account. I n t h e N a t i o n a l accounts,

however, the value of medica1 se rv i ces consumed i s i nc l uded i n t h i s group.

I n t h r budget survey, therefore, expendi ture on t h e se rv i ces o f genera1

p r a c t i t ioners, dent is ts , s p e c i a l i sts, hospi tals, etc. which are no t covr red by

insurance comes under " o t h r r h e a l t h services". I n t h e Nat i o n a l accounts,

however, tha f u l l cost o f t reatment by genera1 p r a c t i t i one rs , dsn t i s ts ,

spec ia l i s ts , etc. i s i nc l uded i n consumption under t h i s ca t rgory o f expendi t u r r .

Th i s means t h a t t h i s ca t rgory o f expendi ture covers l e s s i n t h e budget survey

than i n t h e Na t i ona l accounts. The i tem "ma te r i a l damage", does n o t occur i n

the b ia t ional accounts tables. I t r e f e r s t o m a t e r i a l damage covered by

insurance. Repair o r replacement o f a r t i c l e s as a r e s u t t o f danage aoa ins t

which f a m i l i e s a re no t insured o r i n s u r r d only f o r costs above a c r r t a i n arnOUnt

are no t c l a s s i f i e d under "mater ia1 damage" i n t h e Na t i ona l accounts, but i n the

appropr i a te categor ies o f expendi ture. The amounts g iven undr r t he "ma te r i a l

damage" category of expendi ture a re ob ta ined as fo l lows. Through t he budget

survey da ta are obta ined on t h e s i ze o f t h r premiums p a i d f o r insurance aga ins t

such r i sks . Then t h e Na t i ona l accounts a re used t o determine which p a r t of t he

premiums p a i d are used f o r expend i tu re as a r e s u l t o f damages i n c u r r e d and

which p a r t i s t he re fo re t e f t f o r t he se rv i ce charge of the insurance companies,

which, as mentioned, f a t l under t h e i t em "insurance services". By adapt ing the

macroeconomic data t o the premiums recorded under the budget survey, and by

es t imat ion, average fami l y consumpt i o n connected w i t h "ma te r i a l damage" may be

obtained. N a t u r a l l y t h i s method does no t show what goods were supp l i ed t o

households f o r r r p a i r o r replacement o f the damaged o r l o s t a r t i c l e s . I t does

not, therefore, make i t p o s s i b l e t o ass ign the "ma te r i a l damage" t o t h e

re l evan t ca tego r i r s o f expenditure.

8.3. The p o s s i b i l i t i e s o f i n c o r p o r a t i n g budget survey da ta i n N a t i o n a l accounts

A t present research i s be ing done i n t o the poss ib i l i t i e s of i n c o r p o r a t i n g

budget survey da ta i n N a t i o n a l accounts. The research concentrates on making

an est imate o f p r i v a t e f i n a l consumption expendi ture us ing i n f o r m a t i o n frorn

t he Continuous budget survey on y e a r l y changes i n consumption o f the va r i ous

hwseho ld goods and services, a f t e r the necessary adjustments. Th is e s t imate by

type o f goods and serv ices i s then conf ron ted w i t h t he one based on the

commodity-flou method supplernented w i t h data from r e t a i l t r ade s t a t i s t i c s .

Ana lys is o f the d i s p a r i t i e s w i l 1 have t o lead t o improvements i n the e s t i m a t i o n

methods be ing used. I n t h i s way the r e s u l t s of t h e Continuous budget survey

w i l t c o n t r i b u t e y e a r l y t o the est imates o f p r i v a t e f i n a l consumption

expendi ture i n t h e Na t i ona l accounts.

So f a r r e s u l t s o f the Budget survey were mainly u s e f u l regard ing t h e changes

i n expendi ture on food and c l o th i ng . Concerning t he changes i n expendi ture on

f u rn i t u re , household equipment, ca rs and such the Budget survey i s less useful ,

g iven t he r e l a t i v e smalt s i z e o f t h e sample i n t h e Netherlands.

9. Summary

I n the present paper i t has been t r i e d t o p rov i de a concise d e s c r i p t i o n of the

comp i l a t i on o f household sec to r accounts i n t h e Nether lands N a t i o n a l accounts.

Concerning t he f u r t h e r development o f the househotd sec to r accounts i r seems

p o s s i b l e - w i t h i n t h e near f u t u r e - t o make a breakdown o f t h e income d i s t r i b u -

t i o n by socio-economic groups o f households ( l i k e e.g., self-rmptoyed,

employees and unemployed, pens ioners) u s i n g i n f o r m a t i o n f rom Income

d i s t r i b u t i o n s t a t i s t i c s . Recent ly Van der Laan and De Waard (1985) have made a

success fu l a t tempt a t l i n k i n g data f rom t h e Income s t a t i s t i c s w i t h N a t i o n a l

accounts data o f t h e Ne th r r lands . T h i s study w i l l form t he b a s i s f o r t h e f u t u r e

breakdown o f t h e h w s e h o l d sec to r i n t h e N a t i o n a l accounts.

The p o s s i b i l i t i e s f o r a breakdown o f p r i v a t e f i n a l consumption expend i tu re

by socio-economic groups w i l l depend l a r g e l y on the r e c o n c i l i a t i o n o f t h e

Continuous budget survey w i t h t he N a t i o n a l accounts (See s e c t i o n 8.31. Th i s

reconc i l i a t i o n w i l l be f a c i l i t a t e d u s i n g use and make mat r i ces i n t h e process

o f c m p i l i n g inpu t -ou tpu t t a b l e s i n t h e Netherlands.

A breakdown o f t he p r o d u c t i o n account, t he c a p i t a 1 accumulat ion account and

t h e c a p i t a 1 f i nance account by socio-economic groups o f households does no t

seem p o s s i b l e w i t h i n t h e near f u t u re .

Appendix A, D e s c r i p t i o n o f the Continuous budget survey 2

A l . Aims o f t he Continuous budwet survey

I n January 1978, the Nether lands Cent r a l Bureau of S t a t i s t i c s in t roduced a na-

t i o n a l Continuous budget survey of 2,000 households and persons l i v i n g alone.

As f rom 1980 however, 3,000 househo lds are surveyed.

The survey has a v a r i e t y of aims, t he most impor tant o f uh ich are:

a. C o l l e c t i o n of up-to-date i n f o r m a t i o n on the consumption o f va r ious popula-

t i o n groups i n connect ion w i t h t h e r e v i s i o n of t he p r i c e index o f f a m i l y

c onsump t ion;

b. The da ta from t h r Continuous budget survey p rov ide ~ s r f ~ l i n f o r m a t i o n f o r

p o l i c y on a number o f mat ters such as income, short- term economic trends,

the env i ronment, energy and t he r e t a i l trade;

c. Development o f shor t - term i n d i c a t o r s f o r consumption on t he bas i s o f t he

Continuous budget survey;

d. A t the same t ime t h e Continuous budget survey i s used t o ca lcua te hou the

burden of i n d i r e c t t a x a t i o n i s spread over v a r i w s income groups, the cos t

of b r i n g i n g up c h i l d r e n and f l e x i b i l i t y o f incomes, and t o f o recas t expen-

d i t u r e on consumption on the bas is o f demographic developnents;

e. Comparison of da ta on household consumption i n the N a t i o n a l accounts w i t h

those der ived f rom the budget survey.

AZ. Sampling

The households and persons l i v i n g a lone are se lec ted by a two-stage sampling

process, F i rst , approximate Ly 100 m u n i c i p a l i t i es a r e selected. Adresses a r e

drawn a t random from t h e l i s t o f addresses i n these m u n i c i p a l i t i es . I n view o f

p r a c t i c a 1 considerat ion, a minimum o f 24 addresses pe r m u n i c i p a l i t y must be

chosen.

A3. Met hods

A3.1. The ques t ionna i res

To avo id p l a c i n g t o o g rea t a burden on t h r se lec tad households, a combinat ion

o f household logbook and i n t e r v i e w methods are used t o c o l l e c t t h e data. I n t h e

household Logbook met hod, t he househo l d en te rs da ta i n a housrho l d logbook and

on a number o f quest ionnai res. I n the i n t e r v i e w method the i n t e r v i e w e r ob ta i ns

da ta on t he household by means of in terv iews.

A3.2. D i s t r i b u t i o n o f households over the uhole year

I n the p rev ious s e c t i o n i t was mentioned t h a t t he households keep a record of

a l 1 t h e i r expendi ture du r i ng one month. To achieve the bes t p o s s i b l e spread o f

observa t ion f o r seasonal a r t i c les, the households are assigned a month du r i ng

which they a re asked t o r eco rd a l 1 ou t l ays ( r e f e r r e d t o as t h r r eco rd ing

norlth). 2,000 households began the survey i n January 1978; 167 households

recorded a l 1 t h e i r expendi ture i n January, 167 o t h r r s i n February etc. When

ass ign ing t h e f a m i l i e s t o t h r month, t he airn i s t o ensure t h a t the var ious

income groups are represented i n each record ing month i n a view of a d e s i r r d

a n a l y s i s by income group.

A3.3. C a l c u l a t i o n o f average consunpt ion

The d e s c r i p t i o n under A3.2 shows that, f o r each household, i n f o r m a t i o n i s

ob ta ined on on ly p a r t o f t o t a l expendi ture each year. Expendi ture on f r e q u e n t l y

purchased goods (such as food and smal1 household a r t i c l e s ) i s noted f o r onr

month; expendi t u r e on consumr durables, holidays, gas and e l e c t r i c i ty i s

r r co rded f o r a year f o r each haisehold. For t he c a l c u l a t i o n of average

consumption p e r year, therefore, expendi ture on frequent purchases must f i r s t

be conve r t r d t o a y e a r l y basis, b a s i s c a l l y by m u l t i p l y i n g by 12. O f course, the

a r t i c l e s recorded on a y e a r l y b a s i s do n o t have t o t be co r rec ted i n o r d e r t o

determine ave rage year l y consumpt ion.

A4. Concepts

A4.1. Income

The Nether lands Centra1 Bureau o f S t a t i s t i c s wants t o c l a s s i f y consumption

accord ing t o t he spendable household income. The income o f - a l 1 membtrs of t h r

hwseho ld i s taken i n t o account when determin ing t h i s income.

Spendab l e househo l d income breaks down as f 0 1 lows:

Gross earn ings o f husband 1) t

Gross earnings of w i f e 1) + Gross earn ings o f c h i l d r e n 1) + Gross income f rom pa r t - t ime work + Gross income f rom cur ren t t r ans fe r s :

- Family al lowances t

- Sickness b e n e f i t s etc. no t rece ived

t hrough t he employer t

- Governmsnt grants, ownership of

dwell ing, study g ran t s etc. t

Gross income from proper ty :

- I n t e r e s t + - Rent o f a l 1 types + - Dividends t

Con t r i bu t i on t o o l d age pensions and

widows' and orphans' pensions - Cont r ibu t ions t o sickness, d i sab lement

and unemployment insurance schemes - Tax on earn ings and income -

Net income (= spendable household income) =

1) Gross earnings include, wherr appl icable, t h e employer's p a r t o f the h e a l t h

insurance c o n t r i b u t i o n i f insurance i s compulsory.

A4.2. Consumption

Consumption covers t h e expendi t u res of households on goods and se rv i ces f o r non-

p roduc t i ve purposes, e i t h e r from domestic p roduc t ion o r imported. The ha iseho ld

consumption thus recorded cons is ts o f the value of goods and serv ices purchased

du r i ng t h e survey p e r i o d ( f o r t he f u l l purchase pr ice), t he value of goods and

serv ices rece ived as payments i n k i n d ( f ree us r o f d w e l l i n g etc.), the va lue of

consumption o f home produce and own stocks by self-employed persons and t h e

r e n t a l va lue o f owner-occupied dwel l ings. Excluded from consumption are

compulsory t r a n s f e r s by households t o general Government and s o c i a l s e c u r i t y

funds, savings ( i n c l u d i n g t h a t p a r t o f the c o n t r i b u t i o n s t o l i f e insurancr and

pension funds which can be seen as savings of haiseholds), and do- i t - yourse l f

a c t i v i t i r s ( n a t u r a l l y the purchases of ma te r i a l s f o r these a c t i v i t i e s are p a r t

o f consumpt ion).

A4.3. Thr terms household, person l i v i n g alone, and head o f household

a. Def i n i t i o n o f household

Any group o f t uo o r more persons l i v i n g under t he Same roo f and having a - common budget (same p r i n c i p a l dwel l ing, cooking and e a t i n g togethar, etc.). A

household may t h e r e f o r e cons i s t o f :

- a mar r ied c a i p l e w i t h ch i ldren;

- f a t h e r o r mother w i t h ch i ldren;

- persons no t r e l a t e d t o one another (e.g., two f r i r nds , widow w i t h boarder(s1,

(as y e t ) unmarr ied couple, etc.).

b. D e f i n i t i o n o f person l i v i n g a lone

- any person who l i v e s a t an address as the so le occupant;

- any person who l i v e s as main occupant o r lodger w i t h o thers a t the Same

address, b u t does no t have a common budget w i t h t he others.

c. D e f i n i t i o n of head o f household

- i n households i n c l u d i n g a mar r ied couple, the man;

- i n households oo t i n c l u d i n g a marr ied couple, the f a t h e r o r t he mothrr as

a p p l i cable;

- i n a l 1 o the r cases, the person responsib le f o r pay ing t h r r en t ( o r the owner

o f t he dwe l li ng).

A4.4. C l a s s i f i c a t i o n s

Households a re c l a s s i f i e d by socio-economic category based on t h e socio-

economic category of the head o f the household.

The f01 lowing ca tegor ies a re d i s t inguished: self-employed persons, employees

(subdiv ided i n t o employees i n p r i v a t e en te rp r i ses and c i v i l servan ts ) and non-

employed persons. Other c l a s s i f i c a t i o n s r e f e r t o region, size-c lasses o f ne t

income, and degree of urbanizat ion.

Appendix R. D e s c r i p t i o n o f t h e S t a t i s t i c s o f pc rsona l incomr and weal th 3)

BI. I n t r o d u c t i o n

S t a t i s t i c s on d i s t r i b u t i o n o f personal incomr and wea l t h a re compiled i n t h e

Nether lands s i nce t h e end o f t h e l a s t century. Income and weal th data r e l a t i n g

t 0 a sample o f assessable p r rsons a re used as bas ic mater ia l . These da ta a re

drawn frm m a t e r i a l ava i l a b l e a t t h e Revenue Department o f t h e M i n i s t r y of

Finance (Treasury). Consequently, t he S t a t i s t i c s o f income and weal t h a re so-

c a l l e d secondary s t a t i s t i c s : t he i n i t i a 1 data are c o i l e c t e d f o r a d i f f e r e n t

purpose.Besides the advantages o f d e t a i l e d i n f o r m a t i o n and almost no non-

response t he re a re s o m disadvantages; e.g., on ly data o f importante f o r

t a x a t i o n a re co l lec ted .

O f old, da ta on d i s t r i b u t i o n o f personal income and wea l th a re pub l i shed

u s i n g the i n d i v i d u a l income-earncr o r the marr ied couple as income u n i t . Thsre

is, however, an i nc r cas ing need f o r s t a t i s t i c a 1 i n f o r m a t i o n about t he incorne

d i s t r i b u t i o n o f hwseholds. Income data of hwseho lds are espec ia l l y impor tan t

f o r measuring d i f ferences i n spending p o s s i b i li ties, f o r a household ac t s as

spending u n i t f o r a l o t o f expenditure. I t i s a l s o impor tant t o know how the

household incornes a re b u i l t up o f d i f f e r e n t components. A f t e r an at tempt had

been made i n t h i s d i r e c t i o n f o r t he year 1962, a f i r s t ex tens ive h w s e h o l d

income i n q u i r y s t a r t r d f o r the year 1977.

82. Aims o f t he S t a t i s t i c s o f persona l income and wea l t h

The aims o f t he Income s t a t i s t i c s a re t he f o l l ow ing :

a. t o p rov ide an i n s i g h t i n t o t he a c q u i s i t i o n and d i s t r i b u t i o n o f incomes f o r

i n d i v i d u a l income-rarners as w e l l as households;

b. t o measure d i f ferences i n p rospe r i t y between hwsrho lds ;

c. t o e s t a b t i s h a bas i s f o r a connect ion between the d i s t r i b u t i o n o f income

and t h e d i s t r i b u t i o n o f consumer expendi t u r e (budget survey);

d. t o e s t a b l i s h a bas i s f o r s p e c i a l analyses, i n s i d e as w e l l as ou t s i de t he

Nether lands Centra1 Bureau o f S t a t i s t i c s ;

e. t o e s t a b l i s h a bas i s f o r the l i n k between Income s t a t i s t i c s and the Systern

o f Ma t i ona l Accounts, o f f e r i n g t h e p o s s i b i l i t y f o r a f u r t h e r breakdown o f

t h e accounts o f t he household sector.

The main o b j e c t i v e o f t he wea l th s t a t i s t i c s i s t o g i ve an i n s i g h t i n t o the

d i s t r i b u t i o n o f weal th over i n d i v i d u a l wealth-owners and households. The re -

í a t i o n between t he l e v e l s o f incomr and wea l th i s a l s 0 taken i n t o account.

D3. Met hods

R3.1. C o l l e c t i o n o f da ta

The da ta on income and wea l t h a re taken from the a d m i n i s t r a t i v e t ax records o f

t h e Revenue Department o f t he k l i n i s t r y o f Finance. The records o f wage t a x and

income tax p rov ides d e t a i l e d i n f o rma t i o n on t he la rge number o f income

components. These records a l s 0 f u r n i s h severa l personal and o ther character -

i s t i c s , l i k e sex, age, m a r i t a l s t a t u s and, possibly, occupa t ion and branch o f

i n d u s t r y i n which one i s working. I t tu rned out t h a t t he t a x a d m i n i s t r a t i o n

covers nea r l y a l 1 income-earners.

The da ta on persona l wea l th de r i ved from the tax records on l y r t f e r t o

owners of r e l a t i v e l y l a rge amounts o f proper ty . Owners o f p r o p e r t i e s below

approx. 100,000 hf l. do no t sys tema t i ca l l y f i g u r e i n these records, becausr

t h e i r p r o p e r t i e s a re b e l w the t ax - f ree amount.

Taxa t i on data a r e a l c o used f o r adding toge ther pc rsona l incomes i n o rde r

t o a r r i v e a t household incomes. The sample used f o r t h e Labour f o r c e sample

survey i s a l s o used f o r t he Income s t a t i s t i c s too. T h i s sample covers about 3%

o f t he t o t a l number o f addresses i n t h e Netherlands, i.e. about 150,000

households. The f i g u r e s on t h e composi t i o n of households combi ned w i t h the

f i gu res f r u n the t a x records p r o v i d e t h e bas ic m a t e r i a l f o r t h e Income

s t a t i s t i c s . Us ing t a x records as da ta source f o r the Income s t a t i s t i c s

imp l i es t h a t the r e s u l t s become a v a i l a b l e about 2 1 /2 years a f t e r t h e end o f

t h e year under review. Th i s t ime l ag i s l a r g e l y caused by t he c i rcumstance t h a t

the comp i l a t i on of t he s t a t i s t i c s can o n l y be s t a r t e d when (nea r l y ) a l 1

assessments a re se t t l ed .

83.2. The Dutch persona l income and p rope r t y t a x

Given the f a c t t h a t the tax records are i s used as a sou rc r f o r t h r S t a t i s t i c s

o f income and wea l th i t i s impor tan t t o g i v e a b r i e f exp lana t i on o f t h e Dutch

system o f t a x a t i o n on persona l income and wealth. I n p r i n c i p l e everyone who

Lives i n t h e Nether lands i s l i a b L e t o t a x a t i o n on i n c o m and wealth. The Dutch

persona l income t a x i s syn the t i ca l ; tax i s imposed accord ing t o t h r income-

earner ' s a b i l i t y t o pay.

For t he de te rm ina t i on o f t h r income t a x due t he income sub jec t t o t a x f rom

d i f f e r e n t sources a r e added together. Th i s i n c o m i n c ludes wages and s a l a r i es,

f r i n g e b e n e f i t s (e.g., an amount f o r p r i v a t e use o f an employer 's car), n e t

business income, i n t e res t , a c t u a l r e c e i p t s o f income from immovable p r o p e r t y

and imputed r e n t a l va Cue o f owne r-occupied dwel li ngs (an amount cor respondi ng

t o about 1 per cent o f t he d w e l l i n g ' s value), pensions and o the r s o c i a l

s e c u r i t y b e n e f i t s (exc lud ing f a m i l y allowances), alimony, and s t r i k e pay. Costs

i n d i s s o l u b l y connected w i t h t h e a c q u i s i t i o n o f c e r t a i n income components (e.g.,

t r a v e l expenses t o the p l ace o f work, and o t h e r work- re la ted expenses) can be

counted as nega t i ve under c e r t a i n cond i t i ons . There a re a l s o p o s s i b i l i t i e s t o

deduct s p e c i a l charges. Con t r i bu t i ons t o p r i v a t e pensions (bo th enp loyer ' s and

employee's c o n t r i b u t i o n s ) a re no t i n c l u d e d i n income sub jec t t o tax .

For every assessable person a c r r t a i n arnount i s exempt from taxa t ion . The

Level o f t h i s t ax r e l i e f depends on m a r i t a l status, age, and t h e age and number

o f dependent ch i ld ren . There a re a l s 0 non-standard t ax al lowances i n respec t o f

t he excess o f i n t e r e s t r ece i ved over i n t e r e s t p a i d (o ther than i n t e r e s t fo rm ing

p a r t o f business p r o f i t s ) and i n respect o f d iv idends rece ived on which t he

d i v i dend t a x has been charged. The t axab le p a r t of income i s t axed accord ing t o

a p rog rcss i ve rate. The t axab le income i s d i v i d e d over n i n e s l i ces . The t a r i f f s

a p p l i c a b l e i n 1985 t o t h e s l i c e s vary f rom 16% f o r t h e lowest s l i c e (1977:

20%) t o 72% f o r t h e h i ghes t one (1977: 72%).

S ince 1973 mar r i ed women a re f i s c a l l y p a r t i a l l y independent. Th i s i m p l i e s

t h a t a mar r ied woman i s taxed independent ly as regards her income from presen t -

day work, bus iness p r o f i t s and payments on account o f t h e Sickness R e n e f i t s Act

o r the Unemployment Insurance Act. Income from former labour i s cons idered

f i s c a l l y as income of t he husband, as wel1 as income f rom p r o p e r t y and i n d i v i -

duaL r e n t subsidies. I n 1984, however, t he i n d i v i d u a t t a x a t i o n o f the income o f

ma r r i ed women has been expanded t o a l 1 pensions and annui t ies , s o c i a l i nsurance

benef i t s and s tudy grants.

Wase tax i s a P.A.Y.E. t a x t h a t i s deducted from the wages and sa la r ies , and

i s t r a n s f e r r e d by employers t o t h e I n l a n d Revenue Department. T a r i f f s of wage

and income t a x a re exact l y t he Same. I n about 45% o f the cases the wage t a x i s

a l s 0 t he f i n a l levy.

The p rope r t y t ax r e f e r s t o possessions minus debts. C e r t a i n possessions are

kept out o f t h e t a x l e v y i n 9 process. Jus t l i k e i n income t a x t h e tax - f ree

amounts depend on mari t a l status, and age and number o f dependent c h i ldren.

Possessions and debts o f ma r r i ed women a re seen as possessions o f her husband.

The t a r i f f o f the p rope r t y tax amounts t o 8 o/oo o f p rope r t y p e r January 1 s t of

t he year under review.

I n 1979 an amending b i l 1 was in t roducrd . Th i s i m p l i e d more and h i ghe r tax-

f r e e amwnts f o r c e r t a i n g r w p s o f p rope r t y owners. As regards wage and income

tax a memorandum was i n t r oduced i n 1979 concerning equal t reatment o f the

marr ied (work ing l woman and her husband and o f pa r t ne rs i n o t h e r forms of

l i v i n g together.

84. Concepts

84.1. Income concepts and wea l th concept

D i f f e r e n t income concepts a re used t o make the way o f acqu is i t i on , t h e d i s t r i b u -

t i o n and the r e d i s t r i b u t i o n o f incomes as p e r c e p t i b l e as poss ib le . O r i g i n a l

incomr cons i s t s of a l l persona l income components f rom pr imary sources, i.e.

remunerations f o r t he d i sposa l of f a c t o r s o f product ion. Th i s concept i s opera-

t i o n a l i z e d as the sum t o t a l o f l a b w r income, p rope r t y income ( i n c l u d i n g

imputed r e n t o f owner-occupied dwe l lings), p r o f i t s from e n t r e p r e n e u r i a l

a c t i v i t i e s and o t h e r non- t rans fe r incomes. Two v a r i a n t s o f o r i g i n a l income are

used, v iz . i n c l ud i ng and exc l ud i ng s o c i a l secu r i t y c o n t r i b u t i o n s p a i d by

employers.

T o t a l income cons i s t s o f o r i g i n a l income (exc l ud i ng employers'

c o n t r i b u t i o n s t o s o c i a l s e c u r i t y and s i m i l a r schemes) p l u s cu r ren t t r a n s f e r s

(Soc ia l benef i t s , pensions, e tc . 1. A lso t h i s concept has two var iants , namely

be fo re and a f t e r deduc t ion o f t r a n s f e r s paid. By t r a n s f e r s p a i d are, i n t e r

a l i a, understood soc i a l secu r i t y c o n t r i b u t i o n s p a i d by t he employees, b u t no t

d i r e c t taxes.

Spendable income i s t o t a l income a f t e r deduct ion o f t r a n s f e r s p a i d minus

wage tax, income tax and p rope r t y tax.

The weal th concept i s def i n r d as the value o f the possessions (assets) minus

t h e va lue o f t h e debts ( l i a b i l i t i e s ) . By possessions a re understood mat te rs t 0

which economic va lue can be assigned. Almost every k i n d o f p rope r t y i s sub jec t

t 0 p rope r t y tax, no mat te r whether i t i s business, p r o f e s s i o n a l o r p r i v a t e

proper ty . By debts a re understood o b l i g a t i o n s t o which economic va lue can be

assigned. I n p r i n c i p l e every debt i s considered. Possessions and debts of

mar r ied women a re t r e a t e d as be longing t o the husbands, i n s p i t e o f any

marr iage cont ract , A d i f f e r e n t procedure i s no t poss ib l e on the bas i s of

t a x a t i o n data. Therefore weal th s t a t i s t i c s do no t i nc l ude mar r ied women w i t h

proper ty .

04.2. S t a t i s t i c a 1 u n i t s

Three s t a t i s t i c a 1 u n i t s a re used i n the s t a t i s t i c s s ince 1977, namely:

a. I n d i v i d u a l

a l l persons a re t rea ted as separate income-rarners

b. Man + w i f e

mar r i ed couples a re t r e a t e d as be ing one income-earner w i t h t h e i r aggregatr

income; a l 1 unmarr ied persons a re t r e a t e d as separate income-earners

c. Household

t he incomes o f a l l members o f the household are added toge ther t o one

h w s e h o l d income

I n almost a l 1 s t a t i s t i c a 1 i n f o r m a t i o n on personal income d i s t r i b u t i o n

t h e income u n i t "man + w i fe " i s used, among o ther t h i n g s from c o n t i n u i t y

cons iderat ions. Be fo re the ( p a r t i a l ) f i s c a l independency o f ma r r i ed nomen i n

1973 the bas i c m a t e r i a l d i d n o t o f f e r p o s s i b i l i t i e s f o r o the r procedures.

~ i g u r e s on t he income d i s t r i b u t i o n o f i n d i v idua 1s and househo lds we r e composed

f o r the f i r s t t ime f o r t h e year 1977.

84.3. Socio-economic ca tegor ies

The income-earners a re d i v i d r d i n t 0 f i v e socio-economic ca tegor i r s .

For t h i s c h a r a c t e r i z a t i o n t he income components p r o f i t , wage (or unempLoyment

b e n e f i t ) and pens ion a re compared. Th* h ighes t o f these t h r r e componrnts

determines whether an income-rarner i s charac te r i zed as se lf-employed, employee

(a r unemployed person) o r pensioner. The category employees i s subdiv ided i n t o

employees i n p r i v a t e e n t e r p r i s e s and c i v i l servants. Employees whose p ro fess i on

i s managing d i r e c t o r are charac te r i zed as a separate category. Income-earners

who earn no p r o f i t s , wages o r pensions a re charac te r i zed as persons w i t hou t

occupation. Th i s category consists, i n t e r al ia, o f persons l i v i n g on b e n e f i t s

(not on account o f s ickness o r unemployment), and o f persons on l y r e c e i v i n g

income from proper ty .

The c l a s s i f i c a t i o n o f households by socio-economic s t a t u s i s based on t h e

socio-economic category o f t he head o f the household.

84.4. HousehoLd concept, types o f households, and fami l y stages

By hcusehold i s understood any group o f two o r more persons l i v i n p t oge the r

and hav ing a common buaget. By head c f the household i s understood the man i n

f a m i l i e s i n c l u d i n g a mar r ied couple, t h e f a t h e r o r mother i n f a m i l i e s w i t hou t a

mar r ied couple and i n aCL o t h e r cases t h r one who pays t h r r en t o r owns the

house.

Ry onr-person househoid i s understood any person l i v i n a a lone a t an

address o r any person l i v i n g toge ther w i t h o the r persons on t h e Same address

bu t no t hav ing a common budget w i t h any of them. The household concept i s wider

thar i the f a n i l y concept. A f a m i l y i s d e f i n e d i n t h e narrow sense o f f a m i l y -

nucleus, i.e. a household i n c l u d i n g a mar r ied couple and/or ch i ld ren .

Households can be d i v i d e d i n t o t h ree main types:

a. Non-f ami l y househo l as and one-pe rson househo lds : households w i t h w t

mar r ied couples and w i t hou t c h i l d r e n

b. One-fami l y households (w i t hou t o t hers) : househoLds cons i s t i n g o f ma r r i ed

couples w i t h o r w i t hou t c h i ldren, and incomplete f ami L i es (one-parent

fami L ies)

c. Other one- and m u l t i - f a m i l y households: one-farnily households w i t h

others, and n u l t i - f a m i l y households w i t h o r w i thour o the rs

These main types a r e subd iv ided according t o sex o f the houschold members,

number o f c h i l d r e n and number of others. Incomplete fami l i e s are d iscerned

separatety. As regards fami ly-househo lds seve r a l fami l y stages a re

d i s t i n g u i s h e d accord ing t o age o f t he ch i ldren; c h i l d l r s s fami l i e s a re

d i s t i n g u i s h e d by age of the woman. P r i v a t e households and i n s t i t u t i o n a l

households a r e d iscerned as separate categor ies. Persons i n i n s t i t u t i o n a l

households a re regarded as i n d i v i d u a l s w i t h the e x c r p t i o n o f m a r r i r d couples i n

homes f o r aged persons who are regarded as p r i v a t e households.

84.5. S tanda rd i za t i on of incomes

Household i n c m e is, i n t e r a l ia , used as an i n d i c a t o r o f t he p r o s p e r i t y o f the

h w s r h o l d rnernbers. To be ab l e t o compare the p rospe r i t y o f d i f f e r r n t households

t he household incomrs a re s tandard ized according t o s i t e and composit ion o f the

hwsehold. For t h e c a l c u l a t i o n of standards ( the so-cal l e d "f ami l y equiva lence

scales") seve ra l methods a re avai lab le . Some r e s u l t s are pub l i shed accord ing t o

t he seve ra l ava ib l e methods.

8 4 . 6 . Other c l a s s i f i c a t i o n s

Besides t h e c l a s s i f i c a t i o n s r e f e r r e d t o above (i .e. size-c lass of income and

socio-economic category) some o t h e r c l a s s i f i c a t i o n s are used i n t he Income

s t a t i s t i c s , v i t . sex, mar i t a l status, number of c h i ldren, r e g i on, occupation,

branch o f i n a i s t r y , age and working per iod.

l l O l h I Y> l - l m l O I h l l l O 1 r9 1 - l - 1 9 1 m I Q I i 1 0 l Q 1 N I - l o - l m 1 9 l I 1 CZ t N l r. I - l o- l - I Q l I I C l h I r 4 I - I C l c' l 9 I l I C l i0 1 N l - l ?-J

1 9 i m I I l e l T4 1 l- l - 1 1.3 l - I M l t I C . 1 r.7 I h I - I m 9 l e l l l C' I M

C l 9 1 t3 I I

Y s n Y a O

R m O L L3

n

c -- oi s äl O P m (1 O .r m .r U L Y U . r L O = a - Q u - t = L 0i n s u u a m x s UI 4 O u W o - r W C C C W - r - ¶ O U a x m )L. U ~ Y I m . - - ~ o

- a - u a o L 0 i m x m O c a

t Y > m . . . u s c o V i 3 4 u U U L n 0 . r O .r.. C 0 1 . e u O , Z o - u m ~ . . u m c - a a u c . - Y 1 n w . -

L U & . - ' D E C U V> L O L , C U l O l r l V) 0iu.r l - d & n n L O Y D O C = c a a t a c o o o n CI - m - t V U 0

a b l e 2. Income and o u t l a y account t o r t h e combined s e c t o r H o ~ ~ s e h o l d s , p r i v a t e n o n - f i n a n c i a l u n i n c o r p o r a t e d e n t e r p r i s e s and p r i v a t e n o n - p r o f i t i n s t i t u t i o n s

. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

. i n r [ t e n 1977 1978 1979 1900 1981 1 982 1903 1904 1905 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . mln h f l

RECE IPTC

1 C o i p r n s a t i on o f e n p l oyees 2 Waqes and s a l a r i e s 3 E m p l o v e r s ' c o n t r i b u t i o n s f o r

s o c i a l s e c u r i t v 4 Emplovers ' c o n t r i b u t i o n s f o r p r i v a t e

pens ion and w e l f a r e p l a n s 5 E n t r e p r e n e u r i a l i ncone f rom p r i v a t e

u n i n c o r p o r a t e d e n t e r p r i s e s b Proper t y income 7 I n t e r e s t 0 Div idends , n e t l a n d r e n t and

r o y a l t i e s 9 C u r r e n t t r a n s f e r s

10 C a s u a l t y i n s u r a n c e c l a i m s l 1 S o c i a l s e c u r i t y b e n e f i t s 12 S o t i a l a s s i s t a n c e g r a n t s 13 Unfunded employee p e n s i o n and

w e l f a r e b e n e f i t s 1 4 T r a n s 4 e r s f r o n q e n e r r l g o v e r n m e n t 1 ) 15 T r a n s f e r s f r o n t h e r e s t o f t h e a o r l d 16 Other t r a n s f e r , n.e.c.

I 7 T o t a l c u r r e n t r e c r i p t s

I) o f a h i c h r e c e i v e d by p r i v a t e n o n - p r o f i t i n s t i t u t i o n s 4,180 4,630 4,040 4,820 5,370 5,530 6,110 6,120 0,290

o e 0 * * O f-hh

o e a o o o e o er, CC) r S S N N C m 0 - O m b 7 -1Z C C & U * - O M m a m * - * r r r r r - t r C L

+ ~ C Y S ~ N V ) S N ~n '3 r 4 m M M C) u L.

C . Q ü 0 e C 0 0 C O C . 5 C . C I ~ P . V ) O ~ ~ Q C * r , - W - i h * N O . y > X U L 1 h o -

C C - - - - - C t C t i - l I I l l I l t l l I I 1- I I P? I ' f l I l l I l I 1 I t I I l I N 1 l m 1 I E 1 l I l 1 I I t I l I I I 1 - 1 1 m 1 1 0 - 1 1 - 1 l 1 l I 1 t I t I I t e l l m 1 1 0 - 1

C . 6 0 0 0 0 0 ~ 0 3 0 0 ~ . ~ S U ~ O D . - O . O u 0 3 u m Y > Q m - D . r P h S t i > - Q h-.

o e . ~ o o o o o 0 0 c . 0 h h 1 3 - N w 9 m 9 0 9 - 0 - t - 3 ~ m t x i r 4 0 - m D i 0 9 C Y

C C * I r C - "Ei-gN'N' d UJ

.cI r 4 CI

C . S ~ C 0 0 e e 0 0 C C l C ~ & 3 r - t ? h 9 ? + e- NlfJ m L i ) C 4 0 - N O e e * U L n W

C . C G O . ? O O ~ o a e 0 r - c ? w r ~ s ~ . c r . ~ r - - at7 ~ r r g > m m ~ a r - N U NP.

e- t O * - c s 0 0 0 m o U c r L.- L U El L b

a o m m m r C c L U C U I n U O U al #Z.- L C CL.- * U > > 4 u r n C . L . L O , L U 3 T m L 0 1 x r OiO m L n m u r.- L 3 & O L Y UI o b O c - u

c u c u a l a c u-- O L E O t b . . . L L P , U U b S L d L S L U a l S U U D U U ~ L - , & - U L C 1 rl UI.- b L U Ip.a u 2 C U c m 3 - >

m a m m r n - i s L r l L C L u R D B a d U t . r t 0 - t Y u U O z

n, > * a u O U O c v . - x m

L m m O S O ~ m d U X U

a l m a l c . U I u E L.- Y o Pi-

1 .a 1 - L l u l n l a l L I r n I f .r u ( L c I a . al 1 L l a l D ( U al I C Y I Q , m

I U L l U ) I m I O I c ' C l O ' m I .I u l u 0 0 l * + ' Y 1 . - m 1 1 L m 1 t O L 1 3 n w I U L , l U O L I m u c l c m I - . - L I a t & l u s 1 . m 1 a 0 I n c u I U (I--

a 1 m u m 1 C Y U l u ( l I L W I C O 0 1 .n n 1 L W # = o > 1 O, U... 1 u 1 m I 3.- 3 l m M - l u m u I C S % l - U W t

t r 1 C - I r r r ( r Nu? c. r 4 N - 1 4

n Iw l * l I t

C . C C f . .>e 0 l 3 =.c e e c . = rz I - a r 4 m - 0 t 9 CI lmr r r ( r - I r - - 1

Q r 4 4 r IN C - l *

t l

l I t t 1 - 1

0 3 0 t 3 e c t c 0 0 0 l e r n C . < t h - m m i w m . - ? i m r l I r r r t r

N I * m e I r 4 N t N - N t W

t t t I

1 u u * I O, O . C l t n u I O m .D L t = I > U 3 I U . - n I U L U I I O P 3 UI 1 1 - m I L U Q O I @ C - t c m - t . m m t O b U C l n l . - - I - m Q 1 0 . r m c t L U 0 t LTa .r

t C L O U I . - O O K t O u x t c C . - L t U & + c t - * 1 -D- l U O 0 - t @ u 4 I C m c r l L o - 1 - 0 - G t c n& 4 I - - L O U I U O E t l U = m I - C V I V t U - C D l C C 9 L I - = U m l l - l - l I I t l

0 1 1 c m 1 t O C I t u 0 1 l

m C 01 .LI .- m L u - m m 0 1 - . .U u u > L . . C - L = I @ U r p O O I L I . . > r * nl C O U O @ r . m i n i

- c 3 E r a O o t L U c m c t c m . C a c m S u z O m r * u- O U O

u-0, m . - c c C = * o 0 O L C O u . - - & O L L . - n

4 U b U S C - L I & u n l

# O u t Y U Q u t L OIO c L O C ( I Y V O O C O L W C r n U V ) d C Z (I

- (I

in -u n. c r c m c m m o m u

D r c d .L. s

f D O L C L U L L L U

U D U i i l u U I O L L -0 O O c (OC C O L * LndtO

m m m *

- . n u 1 t - * C l I Ln

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l - f O l m l .z. 1 0 - 1 Q

I G m O l C> 9 9 b - J l h --IJ I m r - I - NY) I

l l I

b U m U .u, - u C o m - c C T U 3 L a c u, a - = I O E - C t C s o c O E U ." ." O .L

U S C C * , O U

-a b C D Q e 0 0

n a u U U C C

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u, j m 0 01

m u m m U u u+-uu L C .- C .- .- a + n u , - L u n U U m a C I C C u w U D U D , o c e u m a c.,

O - N n

c ë c S L O - m .- C Ö E o mal .a n ( P d c a O U L U au t d

0 U 01 c U .R

i0 u r .a

m a L U o .r d L C L U rp 01 5 n- a e m O E U U a .r

L c m u s U ¶ c - n 4 m L U L a .a O Vi n = c m e .r U O

9

I I t C l l o m 0 I l U O U l 1 C I I - a - I l W + M I ( L U l I D c U l I r o s I I P . r O l S I mul- . I U I a c n t u l L a l S l W O W

f..! d N

I l 1 O O C I C : v-, 9 C r t - t O C 4 % - l n - l N l w, l r . I I

O O O C r. O D m .; * - - - t - t * m

O 0 0 e m - '? O,? n > n -

. ; m i - t

L I P * . , - g

m - m I - 1 , 1 t

..i 1 L a m ' . I , . %

C

. i * I m

, - I C

. + I . .- a 9 L-. ..I

O C 0 0 , , , m nz f 2 5 0 : ss o * - n, '-9 4 " . y = f 7 m ? l n c m C r r r

- r . - - z = ' = " " W - n

d

C * u v n - - - C r e * i L * L . L L 0 s

o 0 e C

I g e O * C L * m m f ? L .i& e U . m m , m I C a L 0 Y U C L I L S m s L a- L a r s r r U L Y L e m e * L S L I - 0 - w O C O I -

t O L O L - & m e m * L a e s L I . r & W C 0

Not es

1. For a more d e t a i l e d d e s c r i p t i o n o f t he h is to r r . o f N a t i o n a l account ing i n t he

Nether lands one i s r e f e r r e d t o Nooteboom (1978) and Oomens (1984).

2. Ser f o r a more d e t a i l e d d e s c r i p t i o n Nether lands Centra1 Bureau o f S t a t i s t i c s

(1982, 1984a, 1985a).

3. See f o r a m r e d e t a i l e d d e s c r i p t i o n tdetherlands Centra1 Bureau o f S t a t i s t i c s

(1983, 1985b, 1985d, 1985e, 1986d) and U n i t e d Nat ions (19851, pp. 303-22.

Ref erences and survey repo r t s 1)

Bekkers, J,W.C, and P.L.J. van de Donk: "Verbruikspatronen i n de per iode 1979-

1981" (Consumption Patterns, 1979-19811, Monthly Bu l l e t i n o f S o c i a l

S t a t i s t i c s , Volume 31, no. 1 1 (Movember 19831, pp. 74-82 ( i n Dutch)

Berends-Bal last, H., and J .P. de K l e i jn: "Inkomensverdeling: gegevens u i t

enquêtes o f u i t r e g i s t r a t i e s " (Income D i s t r i b u t i o n : Data f rom I n t e r v i e w s

o r from Reg is t ra t ions ) , Supplement t o the Monthly B u l l e t i n o f Socio-

Econornic S t a t i s t i c s , No. 5 (19851, pp. 19-24 ( i n Dutch)

Grubben, B.H.G.M.,: "Aande ten van leden van huishoudens i n he t

huishoudensinkomen" (Shares o f Hwseholdmembers i n t h e Income o f

Households), Supplement t o the Monthly B u l l e t i n o f Socio-Economic

S t a t i s t i c s , No. 8 (19851, pp. 22-40 ( i n Dutch)

Grubben, B.H.G.M.,: "Inkomens van gezinnen i n 1962 en 1981" (Family Incomes i n

1962 and 1981 1, Supplement t o t he b lonth ly B u l l e t i n o f Socio-Economi c

S t a t i s t i c s , No. 1 (19861, pp. 24-40 ( i n Dutch)

van der Laan, P., and J.W.B. de Waard: V e r g e l i j k i n g tussen de Inkomens-

s t a t i s t i e k en de Nat i ona le rekeningen ( R Comparison between t h e Income

S t a t i s t i c s and t h e N a t i o n a l Accounts), S t a t i s t i s c h e onderzoekingen M26

( S t a t i s t i c a l Essays f.126), S t a a t s u i t g e v e r i j , The Hague, 1985 ( i n Dutch)

tdetherlands Cent r a l Bureau o f S t a t i s t ics: Budgetortderzoek 1978, d e e l 1:

Met hodolog i t; enquetedocumenten (Budget Survey, P a r t 1 : Methodology;

Quest ionnaires), S t a a t s u i t g e v e r i j , The Hague, 1982

-: Inkomensverdel ing van huishoudens 1977 ( D i s t r i b u t i o n o f Income of

Households 19771, S t a a t s u i t g e v e r i j , The Hague, 1983

-: Budgetonderzoek 1978-1981 : l a n d e l i j ke en reg iona le k e r n c i j f e r s (Budget

Survey 1978-1981: N a t i o n a l and Regional Key Figures), S t a a t s u i t g e v e r i j , The

1) With regard t o r ecu r ren t survey r e p o r t s on ly rc ference i s made t o the l a t e s t

pub li ca t ion.

-: Huishoudens 1981: Sociaal-demograf ische c i j f e r s (Households 1961 : Soci a t -

Demographi c Figures), S taa t su i t g e v e r i j, The Hague, 1984b

-: Budgetonderzoek 1980 (Eudge t Survey 19801, S taa t su i t g e v e r i j, The Hague,

1985a

-: Personele inkomensverdel ing 1981 I n d i v i d u e n ( D i s t r i b u t i o n o f Personal

Income 1981: I nd i v i dua l s ) , S taa t su i t gcve r i j , The Hague, 1985b

-: Soci a l e verzekering, pensioenverzekering, levensverzeker ing 1980-1984

(Soci a l Secur i ty, Pens ion Funds and L i f e Insurance 1980-19841,

S taa t su i t geve r i j , The Hague, 1985c

-: Personele vermogensverdeling 1982 ( D i s t r i b u t i o n o f Wealth 19821,

S taa t su i t geve r i j , The Hague, 1985d

-: Personele inkomensve rde l i n o 1982 ( D i s t r i b u t i o n o f Personal Income 19821,

S t a a t s u i t g e v e r i j , The Hague, 1985e

-: Personele vermo~ensoverdrachten 1981 en 1962 (Personal P roper ty T rans fe r s

1981-19821, S t a a t s u i t g e v e r i j , The Hague, 1986a

-: Onderzoek huishoudens van z e l f s t a n d i g e n met eenmalige u i t k e r i n g 1983

(Survey of Households o f Self-Employed Persons Rece iv ing Non-Recurring

B e n e f i t 19831, S t a a t s u i t g e v e r i j , The Hague, 1986b

-: Onderzoek hu i shoudens met e e m a l i n e u i t k e r i n a 1984: werknemers en

u i t ke r i ngsge rech t i gden (Survey o f Households Rece iv ing Non-Recurrent

Allowance 1984: Wage-Earners and Benef i t -Receivers), S t a a t s u i t g e v e r i j , The

Hague, 1986c

-: Personele inkomensverdel ing 1987: Huishoudens ( D i s t r i b u t i o n o f Persona l

Income 1981: Households), S taa t su i t geve r i j , The Hague, 19864

-: Nat i ona le rekeningen 1985 (Nat i o n a l Accounts 19851, S taa t su i tgeve r i j, The

Hague, 1986e

Nooteboom, L,,: "Vee r t i g j a r e n Na t i ona le rekeningen" ( F o r t y Years o f N a t i o n a l

Accounts), i n Nether lands Centra1 Bureau o f S t a t i s t i c s : Denken en meten:

S t a t i s t i s c h e o p s t e l l e n ( S t a t i s t i c a l Essays), S t a a t s u i t g e v e r i j , The Hague,

1978, pp. 1-17 ( i n Dutch)

Oomens, C.A,,: "De o n t w i k k e l i n g van de Nat i ona le Rekeningen i n Nederland" (The

Development o f t h e Nat iona l Accounts i n t h e Nether lands), i n Nether lands

Centra1 Bureau o f S t a t i s t i c s : Voor p r a k t i j k o f wetenschap (For P r a c t i c e o r

Science), CBS/CCS, Voorburg, 1984, pp. 23-46 ( i n Dutch)

Uni t ed Nations, Department o f I n t e r n a t i o n a l Economi c and Soc i a l A f f a i rs,

S t a t i s t i c a 1 O f f i c e : N a t i o n a l Accounts S t a t i s t i c s : Compendium o f Income

D i s t r i b u t i o n S t a t i s t i c s , S t a t i s t i c a l Papers, Ser ies R, no. 79, U n i t e d

Nations, New York, 1985

Available National Accounts Occasional Papers

NA/Ol Flexibility in the system of National Accounts, Eck, R. van, C.N. Gorter and H.K. van Tuinen (1983) This paper sets out some of the main ideas of what gradually developed into the Dutch view on the fourth revision of the SNA. In particular it focuses on the validit and even desirability of the inclusion of a number of carofully cgosen alternative definitions the "Blue Bookn and the or anization of a flexible s stem starting from a core that is easier !o understend than the 1963 SNA.

NA/02 The unobserved economy and the Narional Accounts in the Netherlands, a sensitivity analysis, Broesterhuizen, G.A.A.M. (1983) This paper studies the influence of fraud on macro-economic statistics, especially GDP. The term "fraud" is used as meaning unreporting or underreporting income (e.g. to the tax authorities). The conclusion of the analysis of rowth figures is that a bias in the growth of GDP of more than 0 .5 f is very unlikely.

NA/03 Secondary activities and the National Accounts: Aspects of the Dutch measurement practice and its effects on the unofficial economy, Eck, R. van (1985) In the process of estimatin national product and other variables in the National Accounts a num%er of methods is used to obtain initia1 estimates for each economic activit These methods are described and for each method various possibilities for distortion are considered.

NA/04 Comparability of input-out ut tables in time, Al, P.G. and G.A.A.M. Broesterhulzen (1685) In this paper it is argued that the comparability in time of statistics, and in ut-output tables in particular, can be filled in in various ways. &e wa in which it is filled depends on the structure and object 0% the statistics concerned. In this respect it is important to differentiate between coordinated input-output tables, in which groups of units (industries) are divided int0 rows and columns, and anal tical input-output tables, in which the rows and colunms refer to gornogeneous activities.

NA/05 The use of chain indices for deflatin the National Accounts, Al, P.G., B.H. Balk, S. de Boer and G.P. den Bakker (1985) This paper is devoted to the problem of deflatin National Accounts and input-output tables. This problem is approacbed from the theoretical as wel1 as from the practica1 side. Althou h the theoretica1 argument favors the use of chained Vartia- f indices, the current practice of compilating National Accounts restricts to using chained Paasche and Laspeyres indices. Various possible objections to the use of chained indices are discussed and rejected.

NA/06 Revision of the system of National Accounts: the case for flexibility, Bochove, C.A. van and H.K. van Tuinen (1985) This paper examines the purposes of the SNA and concludes that they frequent1 conflict with one another. Consequently, the structure of the SNA sgould be made more flexible. This can be achieved b means of a system of a eneral purpose core supplemented with s ec f al modules. This core is a fufl-fledged detailed system of National Rccounts with a greater institutionai content than the present SNA and a more elaborate description of the economy at the meso-level. The modules are more analytic and reflect special purposes and specific theoretical views. It is argued that future revisions wil1 concentrate on the modules and that the core is more durable than systems like present SNA.

NA/07 Integration of input-out ut tables and sector accounts; a possible solution, Bos, C. v.d. (f985) In this the establishment-enterprise or company problem is tackled !;':king the institutional sectors to which the establishments belong int0 account during the construction of input-output tables. The extra burden on the construction of input-output tables resulting from this approach is examined for the Dutch situation. An adapted sectoring of ~nstitutional units is proposed for the construction of input-output tables. The proposed approach contains perspectives on further specification of the institutional sectors,

households and non-financial enterprises and quasi-corporate enterprises.

NA/08 A n o t e on Dutch National Accounting da ta 1900-1984, Bochove, C.A. van (1985) This note rovides a brief survey of Dutch national accounting data for 1900-1684 concentrating on national income. It indicates where these data ca; be found and what the major discontinuities are. The note concludes that estimates of the level of national income may contain inaccuracies; that its growth rate is measured accurately for-the period since 1948; and that the real income growth rate serles for 1900-1984 may contain a systematic bias.

NA/09 The s t r u c t u r e o f the nex t SNA: rev iew of the bas i c o p t i o n s , Bochove, C.A. van and A.M. Bloem (1985) There are two basic issues with respect to the structure of the nex: version the UN System of National Accounts. The first is its size : reviewing this issue, it can be concluded that the next SNA must be 'large ' in the sense of containin an integrated meso-econornic statlstical system. It is essentiaf that the next SNA contains an institutional system without the im utations and attributions that pollute present SNA. This can be acgieved by distinguishing, in the centra1 system of the next SNA, a core (the institutional system), a standard module for non-market production and a standard module describing attributed income and consumption of the household sector.

NA/10 Dual s ec to r ing i n National Accounts, Al, P.G. (1985) The economic process consists of various sub-processes, each requiring its own characteristic classification when described from a statistica1 point of view. In doing this, the interfaces linking the sub-systems describing the individual processes must be charted in order to reflect the relations existing within the overall process. In this paper, this issue is examined with the s ecial refernce to dual sectoring in systems of National Accounts. !ollowing a conceptual explanation of dual sectoring, an outline is given of a statistica1 system with complete dual sectoring in which the linkages are also defined and worked out. It is shown that the SNA 1968 is incomplete and obscure with respect to the links between the two sub-processes.

NA/11 Backward and forward l inkages w i t h an a p l i c a t i o n t o the Dutch agro- i n d u s t r i a l complex, Harthoorn, R . (19851 Some industries induce production in ot er industries. An elegant method is developed for calculating forward and backward linka es avoiding double counting. For 1981 these methods have been appfied to determine the influence of Dutch agriculture in the Dutch economy in terms of value added and labour force.

NA/12 Production chains , Harthoorn, R . (1986) This pa er introduces the notion of production cains as a measure of the Eierarchy of industries in the production process. Production chains are sequences of transformation of products by successive industries. It is possible to calculate forward transformations as wel1 as backward ones.

NA/13 The simultaneous compilat ion o f current r i c e and d e f l a t e d input - output t a b l e s , Boer, S. de and G.A.A.I. groesterhuizen (1986) This pa er discusses a number of aspects of the procedure according to whicR in ut-out ut tables are compiled in the Netherlands. A few years ago tEis metgod underwent an essentiai revision. The most significant improvement means that during the entire statistica1 process from the processsing and anal SIS of the basic data up to and inchding the phase of balancin tge tables, data in current prices and deflated data are obtained simu f taneously and in consistency with each other. Data in current prices first used to be compiled and data in constant prices and changes in volume and prices used to be estimated only afterwards. With the new method the opportunity for the analysis of the interrelations between various kinds of data, and thus better estimates is used.

NA/14 A proposal f o r the s o p t i c s t ruc ture o f the next SNA, Al, P.G. and C .A. van Bochove (19E)

NA/15 Features of the hidden economy in the Netherlands, Eck, R. van and B. Kazemier (1986) This pa er presents surve results on the size and structure of the hidden Pabour marker in txe Netherlands .

NA/16 Uncoverin hidden income distributions: the Dutch approach, Bochove, C.A. van 11987)

NA/17 Main national accounting series 1900-1986, Bochove, C.A. van and T.A. Huitker (1987) The main national accountin series for the Netherlands, 1900-1986, are provided, along with a %rief explanation.

NA/18 The Dutch economy, 1921-1939 and 1969-1985. A comparison based on revised macro-economic data for the interwar period, Bakker, G.P. den, T.A. Huitker and C.A. van Bochove (1987)

NA/19 Constant wealth national income: accounting for war damage with an a plication to the Netherlands,1940-1945,Bochove, C.A. van and

van Sorge (1987)

NA/20 The micro-meso-macro linkage for business in an SNA-compatible system of economic statistics, Bochove, C.A. van (1987)

NA/21 Micro-macro link for government, Bloem, A.M. (1987) This paper describes the way the link between the statistics on overnment finance and national accounts is provided for in the ktch government finance statistics.

NA/22 Some extensions of the static open Leontief model, Harthoorn, R. (1987) The results of input-output analysis are invariant for a transformation of the system of units. Such transformation can be used to derive the Leontief rice model, for forecasting input- output tables and for the cafculation of cumulative factor costs. Finall the series expansion of the Leontief inverse 1s used to i: descri e how certain economic processes are spread out over time.

NA/23 Compilation of household sector accounts in the Netherlands National Accounts, Laan, P. van der (1987) This a er provides a concise description of the way in which houseRoEd sector accounts are compiled within the Netherlands National Accounts. Special attention is paid to differences with the recomrnendations in the United Nations System of National Accounts (SNA).

NA/24 On the adjustment of tables with Lagrange multipliers, Harthoorn, R. and J. van Dalen (1987) An efficient variant of the Lagrange method is given, which uses no more computer time and centra1 memory then the widely used RAS method. Also some special cases are discussed: the adjustment of row sums and column sums, additional restraints, mutual connections between tables and three dimensional tables.

Re uests for copies of National Accounts Occasional Papers should be 3 ad ressed to: CBS, National Accounts Department P.O. Box 959 2270 AZ Voorburg The Netherlands