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National Accounts, Climate and Environment, Economic StatisticsPeter Rørmose Jensen
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Supply‑use and input‑output tables describe how goods and services are produced, imported and used in the economy. They balance supply and demand and form the basis for GDP calculations. The system covers about 2,350 products and 117 industries and provides detailed breakdowns of consumption, investment and exports. Input‑output tables enable analysis of direct and indirect economic effects and support modelling and environmental‑economic studies.
Data description
Supply, use and input-output tables provide a detailed picture of how goods and services are imported, produced and used in the Danish economy or exported. Supply and use tables are the basic building blocks in the compilation of the Danish national accounts. They are compiled by including a wide range of sources that state how goods and services enter the economy and how they are used. The organization of the many detailed data in a supply and use system ensures high data quality and, not least, consistency in the figures. The tables make it possible to balance supply and use against each other, and to ensure that estimates of Gross Domestic Product (GDP) are the same regardless of whether they are calculated from the production or use side.
The supply-use system is based on these fundamental relationships
- Total supply = production + imports
- Total use = input in production + household consumption + NPISH consumption + government consumption + gross capital formation + exports
For all products, after reconciliation, supply = use. In the Danish national accounts, balances are worked on for approximately 2,350 goods and services, which are collectively called products. The number of products may vary slightly from year to year, as some products are eliminated and new ones are added. When compiling supply and use tables, 117 industries are worked on.
The Supply table shows in the rows which products are produced in the economy, and in the columns which industries produce them. As a column in the table, the amount of each product imported is also shown. The customs duty on imports can either be counted as part of the supply, or kept separately. Both production and imports are calculated at basic prices. This means that the profits, taxes and subsidies as well as VAT that may be imposed on the products when they are registered as use are kept outside the supply table. The row totals in the supply table are the total supply of each product at basic prices. As is the case in the transmission of the supply table to Eurostat, you can choose to add extra columns to the supply table, which contain columns for the profits, taxes less subsidies and VAT that are imposed on the individual products. This converts the table's row totals in basic prices to purchasers' prices.
The use table shows the same products in the rows as the supply table, but here the columns represent the uses of the products. The first part of the use table has industries in the columns and shows the input of goods and services that are necessary for the industries to produce. The second half of the use table shows how much of each product goes to final uses, which include products that are fully processed and that can meet the needs of consumers or are accumulated as investments for the construction or maintenance of the capital stock. Final uses include consumption expenditure, investment and exports. Consumption expenditure consists of the purchase of products by households, the public sector or NPISH (Non Profit Institutions Serving Households). Investments are purchases of products that can be used repeatedly in production and last for more than one year plus changes in inventory. Exports are sales of products from the Danish economy to the rest of the world.
When compiling the Danish supply and use tables, a significant disaggregation of the categories of final use mentioned above is used. Household consumption is thus divided into 83 COICOP categories. The individual part of public consumption is divided into market and non-market, and both parts are further divided according to the COICOP classification. Collective consumption is divided into 10 categories according to the COFOG classification. Finally, investments are divided into 13 different types, including e.g. Buildings, Machinery or R&D.
Below the use table there are additional rows showing how gross value added is calculated. Here the following definitions apply, which should give the same result, the ENS codes are shown in brackets
- Gross value added (B.1g) = output (P1) - intermediate consumption (P2)
- Gross value added (B.1g) = compensation of employees (D1) + other taxes on production, net (D29-D39) + gross surplus on production and mixed income (B.2g)+(B.3g)
The first definition of gross value added from the production side (P1-P2) can be calculated from the supply and use tables, while data for gross value added from the income side come from other parts of the national accounts.
Statistics Denmark currently publishes only some totals at industry level from the Danish supply and use tables in Statbank. The detailed relationships between supply and use at product level are not published due to confidentiality reasons. Users who wish to work with the most detailed tables can apply for access through the Research Service. There are plans to publish the material in a more aggregated form. Statistics Denmark transmits supply and use tables to Eurostat annually. Starting with the transmission covering 2022, transmission is voluntary in the A88 classification, which means that there are 88 products and 88 industries. The following tables are all transmitted annually in both current and previous year's prices
- T1500 Supply table in basic prices, including a transformation to purchasers' prices
- T1600 Use table in purchasers' prices
- T1610 Use table in basic prices
- T1611 Use table in basic prices, only Danish production
- T1612 Use table in basic prices, only imports
- T1620 Use table of trade profits
- T1630 Use table of taxes on products less subsidies, including VAT and import-related taxes
- T1631 Use table of taxes on products less subsidies, including import-related taxes, excluding VAT
- T1632 Use table of VAT
Input-output tables Under certain assumptions it is possible to combine supply and use tables into an input-output table. While supply and use tables can be considered a statistical product, input-output tables are more often referred to as an analytical tool. The Danish input-output tables provide a detailed, symmetrical picture of the Danish economy, which makes it possible to analyse direct and indirect relationships between production, foreign trade and consumption at a detailed level. In the input-output table, inputs and outputs must be classified symmetrically, either as products or industries. This is an advantage in many analytical contexts, including in economic models. The Danish input-output tables form an integrated part of the national accounts and are consistent with them both in individual years and over time.
In the manuals from Eurostat and the UN, which deal with the compilation of input-output tables, generally 4 methods are specified for converting supply and use tables to input-output tables, A, B, C and D. The first two result in product-product tables while the last two result in industry-industry input-output tables. Statistics Denmark produces input-output tables only based on method D. Here it is assumed that "each product has its own fixed sales structure, regardless of which industry produces it". It is therefore assumed that if industry 1 produces 80 per cent. of the supply of a product, and industry 2 produces the last 20 per cent, all users of this product will get 80 per cent. of their consumption from industry 1 and 20 per cent. from industry 2. Based on this assumption, the supply of products is reclassified to be a supply from industries. Exactly the same routine for reclassification is used for imported products. This means that what starts out as an import of tomatoes is transformed into an import from the foreign agricultural industry.
When the input-output table occupies a special position in relation to the other national accounts data, it is due to their immediate applicability as a basis for a certain type of economic model, the so-called input-output model. The model is by nature completely linear and therefore simple to use. By taking into account the interdependencies between the sectors in the economy, the model can tell how large the effects are on the production of all sectors of a change in demand in a single sector. These are the so-called indirect effects. The analytical possibilities of the input-output tables are significantly increased when, for example, they can be combined with supplementary data that are consistent with the structure of the tables via an input-output model. Statistics Denmark's input-output tables have the industry dimension in common with a number of statistics. This applies, for example, to statistics on employment and hours, which are prepared in the National Accounts, and this applies to the Green National Accounts, where, for example, energy consumption, air emissions, waste and water consumption are calculated for the same sectors as the input-output tables. It enables a wide range of environmental-economic analyses, where environmental statistics in physical quantities are linked to the monetary part of the economy using input-output tables.
The input-output tables are prepared in both current prices and previous year's prices each year, and cover the entire period from 1966 to t-3. Statistics Denmark also prepares newer, but more aggregated input-output tables, which are prepared by updating the latest final input-output table with newer data for the totals in the table, and then updating the content of the table using the mathematical method GRAS. Due to the more imperfect data basis, which is not supported by supply and use tables, these tables are not as reliable as the final versions in full dimension.
As an example of the use of input-output tables, the table NAIOVB is published. It contains import-adjusted growth contributions, which are calculated with an input-output model based on the input-output tables.
The input-output tables are published in the 117*117 industry dimension in the Statbank and as downloads of finished tables in various file formats.
The input-output tables are also transmitted to Eurostat in the A88 dimension and industry*industry format. Each year, the tables are transmitted in current and previous year's prices
- T1750 Symmetric input-output table in basic prices (industry*industry), Danish production and imports combined
- T1850 Symmetric input-output table in basic prices (industry*industry), Danish production, imports in one row
- T1950 Symmetric input-output table in basic prices (industry*industry), imports only
Classification system
Danish supply and use tables and input-output tables are so closely integrated that classifications and groupings are the same in both places. The industries are classified according to the Danish Industry Code 2007 (DB07), which is a Danish version of the international nomenclatures EU's NACE, Rev. 2 and UN's ISIC, Rev. 4. DB07 contains a number of standard groupings: the 127, 36, 19, and 10 groupings. The 117 industry grouping of the final national accounts corresponds - with a few deviations - to the 127 standard grouping and the 117 industries of the national accounts can be aggregated to the other standard groupings. The few deviations are the construction industries, where the national accounts have a more activity-based division, e.g. a division between new construction and repairs, and the trade industries that are limited to only one wholesale trade industry and one retail trade industry that only produces margins (sales minus the purchase of traded goods). The second deviation is the national accounts' special calculation of the rental value of owner-occupied housing, which is not a specific industry in DB07. Thirdly, the national accounts introduce the industry “Renting of non-residential buildings”. Finally, the national accounts divide a handful of industries into market and non-market. In connection with the transmission of data to Eurostat, the industries are aggregated to A64 or A88.
Household consumption as well as the individual part of public consumption are found in the input-output tables divided according to the COICOP classification, while the collective part of public consumption is divided according to the COFOG classification.
The Danish supply and use tables work with a classification of the approximately 2,350 products, which for goods is the Harmonised System (HS), while services are coded according to CPA. As a part of the transmission of supply and use data to Eurostat, products aggregate to the required 88 CPA codes.
Sector coverage
All sectors in the national accounts are covered (S.11 non-financial corporations, S.12 financial corporations, S.13 general government, S.14 NPISH, S.15 households).
Statistical concepts and definitions
The national accounts as well as the input-output tables are compiled according to the definitions in EU's "European System of National and Regional Accounts - ESA2010", which is a European version of the UN's "A System of National Accounts 2008". Chapter 9 in the ENS-manual gives a framework for compiling supply/use tables and how they can be used to compile input-output tables.
Statistical unit
The statistical unit is the local KAU. In some cases (e.g. construction and trade) the unit of homogeneous production is used.
Statistical population
The Danish national accounts are exhaustive. Every annual calculation is made in “level”. Primary statistics are based on the statistical population in the business register, which covers all Danish enterprises.
Reference area
The reference area is the Kingdom of Denmark excluding the Faroe Islands and Greenland.
Time coverage
The Danish supply and use tables are available in a consistent time series from 2014 to t-3 in current prices. Tables in previous years' prices are available for the period 2015 to t-3. Preliminary supply and use tables are prepared for t-2 at a more aggregated level. The input-output tables are available for all years since 1966 and up to t-3. The tables follow the publication of the final national accounts, and the most recent year is currently t-3. As mentioned earlier, some preliminary input-output tables are also prepared for the years t-2 and t-1, although only for 69 industries.
Base period
Every final year (t-3) is a base year. It is compiled in “level” and not by extending or extrapolating.
Unit of measure
The supply and use tables are prepared, like the input-output tables, in 1000 DKK. Tables are prepared in both current prices and previous year's prices. In the transmission to Eurostat, the unit is million DKK, but with 3 decimal places.
Reference period
The reference period of the figures in the annual final national accounts is the calendar year. Flow figures refer to transactions during the year, while employment figures of the type number of employed are averages over the year.
Frequency of dissemination
Supply and use tables are not currently published in their entirety in Denmark. Various totals and derived figures such as GDP are published annually as part of the general publication of national accounts Main Aggregates. Input-output tables are published once a year together with the main aggregates of the national accounts.
Legal acts and other agreements
The act on Statistics Denmark (Lov om Danmarks Statistik) subsections 6 and 8-12.
Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (ESA2010) (OJ L 174, 26.06.2013, p. 1).
Cost and burden
There is no direct reporting burden associated with the compilation of supply and use tables and input-output tables. The supply and use tables are based on Micro-data that are collected in other parts of Statistics Denmark anyway. Input-output tables are derived from the final national accounts.
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