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Input Output Framework Workshop Industry Accounts Division Statistics Canada Fabienne Leclerc Calgary December 4, 2008 Industry Accounts Division

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Page 1: Input Output Framework Workshop Industry Accounts …

Input Output Framework

Workshop

Industry Accounts Division

Statistics Canada

Fabienne Leclerc

Calgary

December 4, 2008

Industry Accounts Division

Page 2: Input Output Framework Workshop Industry Accounts …

2

Outline of the Workshop

• Overview of the I-O accounts

-Mandate

-Production cycle

• Structure of the I-O tables

-Why Regular?

-Industry and Commodity dimension

- Industry and commodity Account Balance

• Example

• Case study: The clothing industry

• Valuation: difference between purchaser and producer

• The I-O Framework

• Applications

• Regionalization of the IO model

- Assumptions

-Outputs of the model

-Confidentiality constraints

• Simulations – case studies

• Multipliers and ratios

Page 3: Input Output Framework Workshop Industry Accounts …

3

NATIONAL ACCOUNTS AND

ANALYTICAL STUDIES

BUSINESS AND TRADE STATISTICS

SOCIAL, INSTITUTIONS AND LABOUR

STATISTICS

INFORMATICS AND METHODOLOGY

MANAGEMENT SERVICES

COMMUNICATIONS AND OPERATIONS

Page 4: Input Output Framework Workshop Industry Accounts …

4

SYSTEM OF NATIONAL

ACCOUNTS

INCOME AND EXPENDITURE ACCOUNTS

BALANCE OF PAYMENTS AND FINANCIAL

FLOWS

PUBLIC INSTITUTIONS

INDUSTRY ACCOUNTS DIVISION (Merge of “INPUT-OUTPUT” and “INDUSTRY MEASURES AND

ANALYSIS” Divisions)

ENVIRONMENT ACCOUNTS AND

STATISTICS

Page 5: Input Output Framework Workshop Industry Accounts …

5

Mandate of the division

The mandate of the Industry Accounts Division (IAD) is to

develop provincial annual and monthly national production

accounts for Canada. Annual input-output tables for Canada in

current and constant prices serve as the foundation for national

monthly measures of constant price GDP by industry, while the

inter-provincial input output tables perform this function for the

annual current and constant price measures of GDP by industry

for the provinces and territories

In addition, the IAD supplies benchmark data for other modules

of the Canadian System of National Accounts by way of annual

national Input-Output (I/O) tables in current and constant prices,

annual provincial Input-Output tables as well as interprovincial

trade flows in current prices, supplementary tables on GDP by

industry, taxes and other margins by commodity and industry.

Page 6: Input Output Framework Workshop Industry Accounts …

6

The information provided by IAD is critical to the ability

of governments and the private sector to make well

informed economic decisions.

Because the monthly GDP program provides the most

timely measure of the status of the Canadian economy, it

is a key indicator used by the Bank of Canada in setting

monetary policy. Like the Bank of Canada, the

Department of Finance also monitors the evolution of

the economy, in its case to plan the federal budget and

formulate macroeconomic policies.

Page 7: Input Output Framework Workshop Industry Accounts …

7

This information is used by provincial and territorial

governments (for example, by their finance and industry

ministries) in tracking industrial sources of economic

growth or contraction, and in their budgetary planning.

The statistics allow them to assess the impact of

economic events, and of their economic development

programs on particular sectors of their economies.

Page 8: Input Output Framework Workshop Industry Accounts …

8

The I-O tables are also used by fiscal authorities to

allocate and forecast commodity taxes

•by way of taxable proportions of personal expenditures,

by province and by category, for HST revenue allocation

(these are necessary for estimation of HST applicable

level of spending for personal expenditures);

•by way of levels of taxable expenditure subject to HST

for industries engaged in the production of tax-exempt

supplies by province;

•by way of national estimates of trade, transport and tax

margins (13 types in 1996) by commodity and type of

user

Page 9: Input Output Framework Workshop Industry Accounts …

9

The I-O table production process also serves to perform a

measure of quality assurance audit to statistics provided

by data supplying Divisions as well as providing regular

feedback to these Divisions. This role is made possible

through the integration of numerous data sources used

in the construction of the Input-Output tables.

The IAD also provides services on a cost-recovery basis

to clients in government, business and academic

communities, through direct sales of customized data

bases and by performing economic impact simulations

with internally developed input-output models on

specifications provided by the client.

The bulk of the data needed to calculate aggregate

productivity measures and other performance indicators

also comes from the I-O tables.

Page 10: Input Output Framework Workshop Industry Accounts …

10

Input-Output Production Schedule

• National tables are produced June each year with a 30

month lag from the reference year

• Provincial tables are produced and released together

with the national tables in November of each year with a

34 month lag from the reference year

Page 11: Input Output Framework Workshop Industry Accounts …

Relationship between the I/O Framework and the SNA

National Input-Output Tables

Satellite Accounts

Income and

Expenditure

Accounts

Productivity

Estimates

National GDP

by industry

Balance of

Payments

Accounts

Environmental

and resource

accounts

Provincial

Economic

Accounts

Provincial

Input-Output

Accounts

Provincial

GDP by

Industry

Accounts

Interprovincial

Trade Flow

Accounts

Page 12: Input Output Framework Workshop Industry Accounts …

12

BASIC STRUCTURE OF CANADIAN

INPUT-OUTPUT TABLES

• Rectangular Input-Output Tables developed at Statistics Canada

• Inputs and Outputs of industries are presented in separate rectangular

tables, showing Industry by commodity detail, (number of commodities

exceed number of industries)

• Input-Output tables consist of 4 matrices

1. Make Matrix (Outputs) 303 industries 727 commodities

2. Use Matrix (Inputs) 303 industries 727 commodities

3. Final Demand Matrix 172 categories 727 commodities

4. Trade flows 727 commodities

Page 13: Input Output Framework Workshop Industry Accounts …

13

Why rectangular I-O tables?

They admit detail as available from economic records.

Meaning of each entry straightforward - observed

transactions not combined with fictitious transfers.

Serve as a statistical audit for consistency, integrity and

comprehensiveness.

Page 14: Input Output Framework Workshop Industry Accounts …

14

Industry Balance Account level S (year 2005) example

The total production value of any or all industries in the output table equals the sum of the intermediate inputs plus Gross Domestic Product inputs in the inputs table.

As an example, industry 5 for mining and oil and gas extraction, shows a production total value of 155,827.6 million dollars in the 2005 outputs table. The same value of total inputs of this industry of 155,827.6 million dollars is shown as the column total of the 2005 inputs table. The Gross Domestic Product inputs (at market price) shows as rows 52-

59 is 111,390.0 million (71.5 % of total) and the intermediate

inputs of goods and services is 44,437.6 millions (28.5 % of total) shown as rows 1-51.

Page 15: Input Output Framework Workshop Industry Accounts …

15

Input-Output Identities Gross Domestic Product Market Price

(2005) Inputs table total column

– sum of rows 52 to 59

– GDP market price inputs 1,284,596.9

Plus Final Demand table total column

– sum of rows 52-59

– GDP Market price Final Demand 88,030.9

Equals GDP market price

– Income side 1,372,627.7

Equals expenditures on GDP

– grand total of Final Demand

Page 16: Input Output Framework Workshop Industry Accounts …

16

Industry Dimension

I/O Industry structure is NAICS-based

- 6-digit NAICS Industries (over 900) linked to I/O Industry (303)

- I/O Industries are on establishment concept

- Universe is based mainly on the Statistics Canada Business

Register

- (BR is generally used as a survey frame by survey divisions)

- I/O Industry includes Input costs and Output values (similar to

profit and loss statements of businesses; outputs akin to

revenues, inputs akin to expenses incurred to generate

revenues)

- Data sources include Surveys, Administrative data, annual

reports, etc.

Page 17: Input Output Framework Workshop Industry Accounts …

17

I/O Industries (con’d)

• All Survey and admin data can be linked to NAICS which in turn is linkable to I/O Industries

• There are issues related to consistent Industry linking (company vs establishment vs enterprise) which causes data confrontation issues

• I/O analysts review survey methodologies and results focussing on such things as universe, coverage, response rates, imputations, edits; production may be under/over reported, imports and exports may be improperly valued, commodities may be misclassified.

• Time-series require significant interaction and feedback to survey division

• Survey results are compared to other data where available such as: administrative data for wages (T4), GIFI (General Index of Financial Information), (corporate income tax file from CRA), Net income (T1)

Page 18: Input Output Framework Workshop Industry Accounts …

18

Detail of the 303 industries and the 172

categories of final demand

287 Industries (Business sector)

16 Industries (Non-business sector)

303

52 categories of consumer expenditures

52 categories of current investment in machinery and equipment

53 categories of current investment in construction

4 categories of changes in inventories

1 category of domestic exports

1 category of re-exports

1 category of imports

6 categories of Federal, Provincial and Municipal expenses

1 category of interprovincial imports

1 category of interprovincial exports

172

Page 19: Input Output Framework Workshop Industry Accounts …

19

The Input-Output structure of the Canadian Economy 2001- 2002

Hierarchical classification according to Naics*

Identification code and title Naics definition

1A 111, 11211A 111, 112

11A0 111, 112

111400 Greenhouse, nursery and floriculture production 1114

111A00 Crop production (except greenhouse, nursery and floriculture production) 1111-1113, 1119

112500 Animal aquaculture 1125

112A00 Animal production (except animal aquaculture) 1121-1124, 1129

1B 113113 113

1130 113

113000 Forestry and logging 113

1C 114114 114

1140 114

114000 Fishing, hunting and trapping 114

1D 115115 115

1150 115

115100 Support activities for crop production 1151

115200 Support activities for animal production 1152

115300 Support activities for forestry 1153

Support activities for agriculture and forestry

Support activities for agriculture and forestry

Fishing, hunting and trappingFishing, hunting and trapping

Fishing, hunting and trapping

Support activities for agriculture and forestry

Table I. Naics-Based Small (S), Medium (M), Historical Link (L) and Worksheet (W) Aggregation-level Industries

for use with the System of National Accounts, for 2002 onwards*

Crop and animal productionCrop and animal production

Crop and animal production

Forestry and loggingForestry and logging

Forestry and logging

Page 20: Input Output Framework Workshop Industry Accounts …

20

The Input-Output structure of the Canadian Economy 2001- 2002

Hierarchical classification according to Naics*

Small (S) level sequential code and category title Medium (M) level sequential code and category title

Historical link (L) level sequential code and category title

Worksheet (W) level sequential and mnemonic code and category title

Categories at the W level highlighted in yellow represent an alternative W structure for use with the public files.

Identification code and title Naics definition

Business sector

' W ' Naics

code

1 1A Crop and animal production 111, 112

1 11A Crop and animal production 111, 112

1 11A0 Crop and animal production 111, 112

1 111400 Greenhouse, nursery and floriculture production 1114

2 111A00 Crop production (except greenhouse, nursery and floriculture production) 1111-1113, 1119

3 112500 Animal aquaculture 1125

4 112A00 Animal production (except animal aquaculture) 1121-1124, 1129

2 1B Forestry and logging 113

2 113 Forestry and logging 113

2 1130 Forestry and logging 113

5 113000 Forestry and logging 113

3 1C Fishing, hunting and trapping 114

3 114 Fishing, hunting and trapping 114

3 1140 Fishing, hunting and trapping 114

6 114000 Fishing, hunting and trapping 114

4 1D Support activities for agriculture and forestry 115

4 115 Support activities for agriculture and forestry 115

4 1150 Support activities for agriculture and forestry 115

7 115100 Support activities for crop production 1151

8 115200 Support activities for animal production 1152

9 115300 Support activities for forestry 1153

Table II. Naics-based small (S), medium (M), historical link (L) and worksheet (W) aggregation-level industries

for use with the Input-Output Tables, Make and Use Matrix, from 2002 and onwards*

Page 21: Input Output Framework Workshop Industry Accounts …

21

Commodity Dimension

Industries produce and sell commodities which are either

goods or services.

Input-Output goods commodities are concorded to the

International Harmonized System (HS) standard

classification of goods (SCG).

Input-Output service commodities are specified by type

and will be concorded to the international Central

Product Classification (CPC) (yr. 2007).

Page 22: Input Output Framework Workshop Industry Accounts …

22

Commodity Balance Account Level S (year 2005) example

The production of a commodity (supply) equals the sum

(demand) of intermediate use (inputs table) plus final

demand (final demand table)

The domestic production from Canadian industries of the

row commodity 23, motor vehicle, other transportation

equipment & parts is 133,576.6 millions for all industries

in the outputs table.

The Inputs table shows a total use of 68,504.4 millions of

this commodity plus final demand total use of 65,072.2

millions equals 133,576.6 millions

Page 23: Input Output Framework Workshop Industry Accounts …

23

The relationships above are shown

schematically (year 2005)

Inputs Final Demand Total

Row 1

2613

Row 51

Row 52

1373

GDP

Row 59

Total 2613 1373

1328 1,285

Intermediate

1,285 88

Page 24: Input Output Framework Workshop Industry Accounts …

24

NAICS 1859-Other clothing acc.

National level

Category Io Table

2001F

2002F

2003F

2004P

Supply Output 661366 647452 740231 629001

Margins 1089916 1124741 1142300 1171553

Imports 1244452 1280111 1135184 1279154

Supply Total 2995734 3052304 3017715 3079708

Demand Input 469081 526001 533671 531721

Final Demand 2526653 2526303 2484044 2547987

Demand Total 2995734 3052304 3017715 3079708

Balance 0 0 0 0

Page 25: Input Output Framework Workshop Industry Accounts …

25

The Input-Output Structure of the Canadian Economy 2001- 2002

Small (S) level sequential code and category title

Medium (M) level sequential code and category title

Historical link (L) level sequential code and category title

Worksheet (W) level sequential and mnemonic code and category title

Categories at the W level highlighted in yellow represent an alternative W structure for use with the public files.

Mnemonic '

W ' code

1 Grains1 Grains

5 Wheat, unmilled

5 0071 Wheat, unmilled, excluding imputed feed

6 0072 Wheat, unmilled, imputed feed

6 Corn, barley, oats and other grains

7 0081 Grain corn, excluding imputed feed

8 0082 Corn fodder, imputed feed

9 0083 Barley, excluding imputed feed

10 0084 Other grains, excluding imputed feed

11 0085 Other grains and fodder, imputed feed

2 Other agricultural products2 Live animals

1 Cattle and calves

1 0010 Cattle and calves

2 Hogs

2 0030 Hogs

3 Poultry

3 0040 Poultry

4 Other live animals

4 0059 Other live animals

3 Other agricultural products7 Fluid milk, unprocessed

12 0090 Fluid milk, unprocessed

8 Eggs in the shell

13 0100 Eggs in the shell

TABLE III. Hierarchical Structure of the Input-Output Commodity Classification

Small (S), Medium (M), Historical Link (L) and Worksheet (W) Level Aggregations

Page 26: Input Output Framework Workshop Industry Accounts …

26

The Input-Output Structure of the Canadian Economy 2001- 2002

Small (S) level sequential code and category title

Medium (M) level sequential code and category title

Historical link (L) level sequential code and category title

Worksheet (W) level sequential and mnemonic code and category title

1

1

28

29 PE028 New and used (net) motor vehicles

29

30 PE029 Motor vehicles parts and accessories

2

16

17 PE016 Furniture and floor covering

18

19 PE018 Household appliances

3

35

36 PE035 Recreation, sporting and camping equipment

40

41 PE040 Jewellery and watches

24

4

5 PE004 Men's and boy's clothing

6

7 PE006 Women's and children's clothing

8

9 PE008 Footwear

Personal expenditures, clothing and footwear

Personal expenditures, men's and boy's clothing

Personal expenditures, women's and children's clothing

Personal expenditures, footwear

Personal expenditures, other durable goods

Personal expenditures, recreation, sporting and camping equipment

Personal expenditures, jewellery and watches

Personal expenditures, semi-durable goods

Personal expenditures, motor vehicles parts and accessories

Personal expenditures, furniture and household appliances

Personal expenditures, furniture and floor covering

Personal expenditures, household appliances

Personal expenditures

Personal expenditures, durable goods

Personal expenditures, motor vehicles and parts

Personal expenditures, new and used (net) motor vehicles

TABLE IV. Hierarchical Structure of the Input-Output Final Demand Categories

Small (S), Medium (M), Historical Link (L) and Worksheet (W) Level Aggregations

Categories at the W level highlighted in yellow represent an alternative W structure for use with the public files.

Page 27: Input Output Framework Workshop Industry Accounts …

27

DIMENSIONS AND

CONFIDENTIALITY CONSTRAINTS NAICS’s based Classifications:

“W” “L” “M” “S” Industries 303 117 62 25

Commodities 727 476 111 59

Final Demand Categories 172 120 39 16

• Interprovincial I-O table adds final demand categories for

Exports and Imports with each province/territory

• National I-O tables are published at “S” level. The “S”, “M” and

“L” levels are available on CANSIM.

• Interprovincial I-O tables are only publicly available at “S” level

• Confidentiality constraints make it difficult to release provincial

data at more disaggregated levels

• Simulation model services are available using “W” level detail

Page 28: Input Output Framework Workshop Industry Accounts …

28

BASIC STRUCTURE OF INPUT-OUTPUT TABLES

MAKE

719 X 303

Commo

dities

= + USE

719 X 303

Final Demand

719 X 172 =

Gross output

of

commodities

Categories are reflected through all 13 provinces/territories

+

=

+

+ =

=

= Industry use of

primary factors

8 X 303

Final use of primary

factors

8 X 172

GDP income

based

Gross output

of industries

Total use of

industries GDP

expenditure

based

=

Industries Industries Categories

Page 29: Input Output Framework Workshop Industry Accounts …

29

ACCOUNTING IDENTITIES

• Commodity balance:

Production + imports = intermediate use

+ domestic final use

+ exports

• Industry balance:

- Total output of an industry (gross output) =

its intermediate inputs + primary inputs

- Gross Domestic Product (expenditure

based) =

Gross Domestic Product (income based)

Page 30: Input Output Framework Workshop Industry Accounts …

30

PROVINCIAL AND

INTERPROVINCIAL INPUT-OUTPUT

TABLES

• A Provincial Input-Output table looks identical

to the National

• An Interprovincial Input-Output table accounts

for economic linkages among the provinces

and territories, adding 24 final demand

categories for exports and imports for each

province and territory

Page 31: Input Output Framework Workshop Industry Accounts …

31

PROVINCE/

TERRITORY EXPORTS IMPORTS

Newfoundland

Prince Edward Island

Nova Scotia

New Brunswick

Québec

Ontario

Manitoba

Saskatchewan

Alberta

British Columbia

Yukon Territories

Northwest Territories

Nunavut

Government Abroad

Ix P

xi I

M P

Mi

Ix =International exports

Pxi=Provincial exports

Im=International imports

Pmi=Provincial imports

Categories reflect 719 commodities

and indirect taxes

on products by province.

Interprovincial Trade Flow Matrix

Page 32: Input Output Framework Workshop Industry Accounts …

32

Interprovincial Trade Flows

In addition to international exports and imports, we show provincial exports and provincial imports.

This introduces three additional constraints.

A) Across regions, total regional imports equal total regional exports, net (interregional) trade balances of regions sums to zero.

B) Sum of foreign exports (foreign imports) of regions equal total national exports (imports).

C) Across regions, total supply equals total disposition.

Page 33: Input Output Framework Workshop Industry Accounts …

33

CONVENTIONS FOR

INTERPROVINCIAL FLOWS

1. Exports can originate from a region if the goods or services are produced in that region or are withdrawn form inventories of establishments in that region. A regional export also occurs when services (e.g. hotel accommodations, meals or entertainment) are purchased within a region by a non-resident while staying in that region.

2. Imports are defined for a region if the goods or services are destined for the region's current expenditure, for capital formation in the region, used as intermediate inputs by establishments in that region, or make up additions to inventories.

Page 34: Input Output Framework Workshop Industry Accounts …

34

I/O treatment of imports and

exports

Contrast this concept with imports and exports by

port of lading or custom clearance. They are in many

cases not consistent with true origin and destination.

Since goods and services are valued at approximate

basic prices, interregional imports and exports are

more complex as goods imported from another

region may lead to import of various margins from

other regions or abroad.

Page 35: Input Output Framework Workshop Industry Accounts …

35

GROSS DOMESTIC PRODUCT AT BASIC PRICE

The values are now published on basic price (CANSIM).

Here is an example as a comparison between the different concepts.

Total of the economy 2004 (millions of dollars)*

Inputs Fin. Dem. TOTAL BASIC PRICE FACTOR COST MARKET

Indirect Taxes on products 20735.6 84731.9 105467.5 105467.5

Subsidies on products -15629.3 -15629.3 -15629.3

Subsidies on production -870.6 -870.6 -870.6 -870.6

Indirect taxes on production 59866.0 59866.0 59866.0 59866.0

Wages and Salaries 570195.1 570195.1 570195.1 570195.1 570195.1

Supplementary Labour Income 84762.3 84762.3 84762.3 84762.3 84762.3

Mixed income 84143.0 84143.0 84143.0 84143.0 84143.0

Other Operating Surplus 402894.0 402894.0 402894.0 402894.0 402894.0

TOTAL 1206096.1 84731.9 1290828.0 1200989.8 1141994.4 1290828.0

* Includes taxes in final demand

GROSS DOMESTIC PRODUCT

Page 36: Input Output Framework Workshop Industry Accounts …

36

SOME DEFINITIONS

Supplementary Labour Income:

This category consists of expenditures incurred by employers on account

of labour that can be regarded as payment for employees' services.

Employers' contributions to pensions, welfare, employment insurance and

workers' compensation programs are included in this category. In addition

to these contributions, employers give "severance pay" or "termination

pay" "early retirement bonuses" etc.

Mixed Income:

It consists of payments to owners of unincorporated businesses (e.g. self-

employed persons and farmers). the payments represent combined

remuneration to both capital and labour which are employed in the

production process.

Other operating surplus includes:

Profits generated by corporations and government business enterprises

before taxes and dividends.

Capital consumption allowances (depreciation) for both the corporate and

unincorporated sectors.

Inventory valuation adjustment of non-farm inventories.

Interest and miscellaneous investment income.

Bad debt, charitable donation

Page 37: Input Output Framework Workshop Industry Accounts …

37

VALUATION OF INPUT-OUTPUT

CELLS • All Cells must be valued consistently in order for tables to

balance

• For Analytical Uses I-O tables are valued at producer prices

• Producer Price = selling prices at boundary of the

producing establishment (in manufacturing,

“factor gate” price) excluding all taxes

• Purchaser Price = valuation of commodities purchased by

industries and final demand sectors

• Margins = There are 7 types of margins that are used to

convert between purchaser and producer price

valuations: retail , wholesale, tax, transport, gas,

storage and pipeline

• I-O tables are first balanced in purchaser prices and

subsequently in producer prices

Page 38: Input Output Framework Workshop Industry Accounts …

38

TYPES OF TAXES ON GOODS AND SERVICES

Federal Trading Profits on Lottery and Race Track

Federal Gasoline tax

Federal Excise Tax

Federal Excise Duties

Federal Air Transportation Tax

Provincial Wine and Liquor Gallonnage Tax

Provincial Trading Profits on Liquor and Lottery

Provincial Gasoline tax

Provincial Amusement Tax

Local Amusement tax

Local Retail sales tax

Federal Goods and Services Tax

Provincial Retail sales tax (including liquor and tobacco)

Provincial Harmonized Sales Tax

Page 39: Input Output Framework Workshop Industry Accounts …

39

Producer to Purchaser valuation for

a commodity Value

Domestic plant produce a good g3 60

Good is transported to a wholesaler 1

Good is bought by a wholesaler 61

Good is sold by the wholesaler to a retailer 68

Wholesale margins 7

At point of sale tax is levied 12

Final purchaser value to the buyer sold by

retailer plus tax 80

Page 40: Input Output Framework Workshop Industry Accounts …

40

Purchaser to producer price

valuation of Inputs to a buyer

Suppose the good valued at 80 is a input to an

industry which also buys other goods and

services and GDP components

The purchaser price to producer price maybe

shown

Page 41: Input Output Framework Workshop Industry Accounts …

41

Inputs for an Industry

Purchaser Tsp Whls Tax Producer

g1 10 1 2 1 6

g2 30 1 2 27

g3 80 1 7 12 60

s1 10 10

s2 20 3 17

Tsp margin 3

Wholesale margin 11

Tax Margin 16

GDP (factor) 50 50

Total 200 3 11 16 200

Page 42: Input Output Framework Workshop Industry Accounts …

42

National Valuation of Personal Expenditure Category: Household Appliances in $thousands

Commodity description Purchaser Retail Wholesale Tax Transport Producer

price margin margin margin margin price

Household clothes washers & dryers 649,500 150,588 72,011 77,278 3,236 346,387

Household dishwashers 280,364 67,472 35,144 32,881 2,247 142,620

Mowers, snowblowers, sprinklers, etc. 900,237 210,820 97,498 106,054 15,828 470,037

Non-electric furnaces & heating equipment 182 40 0 19 0 123

Bulldozers, farm & garden tractors 218,225 43,594 18,369 25,198 2,465 128,599

Other agricultural machinery 1,239 0 220 140 23 856

Fans & air circulation units, not industrial 77,925 19,246 5,000 9,398 985 43,296

Air conditioning equipment, wall & window 99,187 26,787 8,416 11,936 908 51,140

Microwave ovens 250,749 74,033 42,759 29,880 7,608 96,469

Small household appliances 1,467,926 350,628 151,615 176,002 13,685 775,996

Electric furnace & other electric heating equipment 28,543 4,430 4,249 3,339 628 15,897

Household refrigerators & freezers 981,700 246,917 109,615 117,299 5,014 502,855

Household cooking equipment, excl. microwave ovens 853,151 302,492 112,172 101,224 7,700 329,563

Telephone & related equipment, incl. facsimile 275,297 72,404 43,512 33,532 795 125,054

Wholesaling margins 0 0 0 0 0 700,580

Retailing margins 0 0 0 0 0 1,569,451

Transportation margins 0 0 0 0 0 61,122

Indirect taxes on products 0 0 0 0 0 724,180

Total 6,084,225 1,569,451 700,580 724,180 61,122 6,084,225

Page 43: Input Output Framework Workshop Industry Accounts …

43

Commodity Balance

01300 Fruits, Fresh, Ex. Tropical

PURCHASER RETAIL WHOLESALE TAX T.S.P. GAS PRODUCERS

INTERMEDIATE INPUTS

16 MEAT/MEAT PROD. (EXC. POULTRY) 336 0 53 0 11 0 272

18 FISH PRODUCTS INDUSTRY 351 0 52 0 14 0 285

19 FRUIT AND VEGETABLE INDUSTRIES 85776 0 13400 0 2761 0 69615

20 DAIRY PRODUCTS INDUSTRIES 12992 0 2052 0 458 0 10482

25 BREAD & OTHER BAKERY PROD. IND. 689 0 107 0 27 0 555

27 SUGAR CONFECTIONERY IND. 514 0 82 0 25 0 407

33 WINE INDUSTRY 21949 0 3471 0 708 0 17770

182 WHOLESALE TRADE INDUSTRIES 1090 0 177 0 34 0 879

199 ACCOMMODATION SERVICE IND. 5453 0 852 0 198 0 4403

200 FOOD & BEVERAGE SERVICE IND. 39968 0 6245 0 1454 0 32269

212 CAFETERIA SUPPLIES 17062 0 2666 0 622 0 13774

TOTAL INTERMEDIATE INPUTS 186180 0 29157 0 6312 0 150711

OUPUTS

2 AGRICULTURE, FIELDCROP 0 0 0 0 0 0 279419

TOTAL OUTPUTS 0 0 0 0 0 0 279419

FINAL DEMAND

1 CE FOOD & NON-ALCOHOLIC BEV. 756162 172953 91945 0 20363 0 470901

121 INV. RAW MATERIALS & G.P.R.S. -22998 0 0 0 0 -22998

128 DOMESTIC EXPORTS 55724 0 4159 0 1869 0 49696

129 RE-EXPORTS 4886 0 0 0 0 0 4886

130 IMPORTS -373777 0 0 0 0 0 -373777

TOTAL FINAL DEMAND 419997 172953 96104 0 22232 0 128708

TOTAL INPUTS + FINAL DEMAND 606177 172953 125261 0 28544 0 279419

TOTAL OUTPUTS - TOTAL INPUTS -606177 -172953 -125261 0 -28544 0 0

Page 44: Input Output Framework Workshop Industry Accounts …

Exports: purchaser’s price vs producer’s

price

The exports are valued at the border (purchaser’s price) which includes a transport margin.

Ex: export of a good produced in a factory in Ontario

Purchaser’s price: $15,000.00

Producer’s price (factory in Ontario): $10,000.00

Transportation margin (transporter from Manitoba) $ 5,000.00

Then: export at purch. price = $15,000.00

But: export from Ontario = $10,000.00 (good)

export from Manitoba = $ 5,000.00 (transport margin)

Conclusion: Only the producer’s price shows the true transactions.

Page 45: Input Output Framework Workshop Industry Accounts …

45

APPLICATIONS

Page 46: Input Output Framework Workshop Industry Accounts …

46

The National Input-Output

Model

Page 47: Input Output Framework Workshop Industry Accounts …

47

Fictive example

Example of Impact of $10 Demand For Exports of Manufactured goods

Assume we have 3 commodities: Manufactured goods, other goods, services.

We want to know the direct and indirect effects of an increased demand for export of $10 worth of

manufactured goods, but no units of the other commodities.

So we have a final demand, which can be denoted as:

Com 1 10

e = Com 2 0

Com 3 0

Page 48: Input Output Framework Workshop Industry Accounts …

48

Suppose we have a market share matrix :

Com 1 Com 2 Com 3

Ind. 1: 1.0 0.5 0.3

D =

Ind. 2: 0 0.5 0.7

What this tells us is that:

Industry 1 is the only industry producing manufactured goods.

Industries 1 and 2 each produce half of the output of commodity 2,

other goods.

Industry 1 produces 30% of the output of commodity 3 (services), and

industry 2 produces 70% of services.

Page 49: Input Output Framework Workshop Industry Accounts …

49

Now that we know that industry 1 is required to produce $10 of output, how

does it go about it. It has to bring together a number of goods and services in

order to do this. Hence we go to the matrix of technological coefficients, B,

which is derived from the Use matrix.

Ind 1 Ind 2

Com 1: 0.2 0.1

B= Com 2: 0.4 0.1

Com 3: 0.2 0.4

Primary Coefficients

0.2

0.4

Page 50: Input Output Framework Workshop Industry Accounts …

50

To produce $10 of output industry 1 will require

$2 of commodity 1,

$4 of commodity 2 and

$2 of commodity 3.

Where will these commodities come from? The industries which produce

them.

To find that out we must return to the market share matrix D. From this we

can see that:

Page 51: Input Output Framework Workshop Industry Accounts …

51

Industry 1 produces all of commodity 1: $2, as well as half of commodity 2:

$2, and 30% of commodity 3: 60 cents, for a total of $4.60.

Industry 2 produces half of commodity 2: $2, and 70% of commodity 3:

$1.40, for a total of $3.40.

At this point industry 1 has produced $14.60 (the original $10 plus $4.60),

and industry 2 has produced $3.40.

The process does not stop here. We need to go back to the matrix of

technological coefficients to find out what inputs are required to produce

$4.60 of industry 1’s output and $3.40 of industry 2’s output.

Page 52: Input Output Framework Workshop Industry Accounts …

52

For $4.60 output of industry 1, we need:

.92 of com 1

1.84 of com 2

.92 of com 3

For $3.40 output of industry 2, we need:

.34 of com 1

.34 of com 2

1.36 of com 3

Page 53: Input Output Framework Workshop Industry Accounts …

53

Again, we want to know what industries produce these commodities:

Industry 1 will produce all of commodity 1: .92 + .34 = 1.26,

$1.09 of commodity 2, and .68 of commodity 3, making a total

of $3.03.

Industry 2 will produce $1.09 of commodity 2 (.92 + .17), and

$1.60 of commodity 3, making a total of $2.69.

Page 54: Input Output Framework Workshop Industry Accounts …

54

At this point industry 1 has produced a total of $17.63 and industry 2

has produced $6.09.

To arrive at these figures we took the initial output of $10 and made

successive additions for each round of production. Notice that with

each round the output decreases, because the intermediate inputs

required to produce a dollar of output is less than a dollar.

We can continue to work through the various rounds of production

until the additions are so small that we reach a limit. This should be

about $24 (24.814815) for industry 1 and $12 (12.592593) for

industry 2. We know from the original parameters that the primary

factor coefficients are respectively 0.2 and 0.4 for industries 1 and 2.

If we multiply these coefficients by the output of the corresponding

industries the weighted sum is equal to 10.

Page 55: Input Output Framework Workshop Industry Accounts …

55

Output generated (Without leakages)

Industry 1 Industry 2

Initial demand 10

first round 4.6 3.4

second round 3.034 2.686

third round 2.12086 1.91794

…… … …

…… … …

Total 24.814815 12.592593

x .2 x .4

GDP 4.962963 5.0370372 Sum = 10

Page 56: Input Output Framework Workshop Industry Accounts …

56

The mathematical expression of the accounting balance

between total supply and total disposition

q + m + v = Bg + e* + XD + XR

where

q is the total commodity output vector

Bg is the intermediate input vector

m is a vector of the values of imports

v is a vector of the values of withdrawals from inventories

XD is a vector of the values of domestic exports

XR is a vector of the values of re-exports

e* is a vector of the values of the following

final demand categories:

PE + FCF + VPCA + NGCE

Page 57: Input Output Framework Workshop Industry Accounts …

57

COMMODITIES

(719

commodities)

INDUSTRIES

(300

industries)

FINAL DEMAND

CATEGORIES

TOTAL C I I

N

V

G X

I

X

P

M

I

M

P

COMMODITIES

(719 commodities)

Intermediate

inputs

Gross

Output by

Commodity

INDUSTRIES

(300 industries) Production

Gross

Output by

Industry

Indirect taxes on products

Primary

inputs

GDP

(income

based)

Indirect taxes on production

Subsidies on products

Subsidies on production

Wages and salaries

Supplementary labour income

Mixed income

Other operating surplus

Total Gross Output

by Commodity

Gross

Output by

Industry

GDP (expenditure based)

Accounting framework for the

Canadian Provincial Input-Output

Accounts

Categories are reflected through all 13 provinces/territories

C = Consumption (personal expenditure)

I = Investment INV = Inventory Change

G = Government current expenditure

XI = International exports MI = International imports

XP = Provincial exports MP = Provincial imports

Page 58: Input Output Framework Workshop Industry Accounts …

58

Technological coefficients

Derived from the INPUT matrix

1ˆ gUB technological relationship

Represents the direct input requirements of intermediate inputs

Page 59: Input Output Framework Workshop Industry Accounts …

59

Market share coefficients

Derived from the OUTPUT matrix

1ˆ qVD

Industry shares of production of each commodity are fixed

Page 60: Input Output Framework Workshop Industry Accounts …

60

BASIS FOR DERIVING THE

IMPACT MATRIX Matrix of Market Share Coefficient

• Calculated from MAKE MATRIX

• Industry shares of production of each commodity

• g=DTq

Matrix of Technological Coefficients

• Calculated from USE MATRIX

• Inputs required to produce a dollar of industry output

• Ui=Bg

Assumptions

• Each industry has fixed market share of any commodity

• Technical coefficients of each industry are fixed

Page 61: Input Output Framework Workshop Industry Accounts …

61

DERIVING THE IMPACT

MATRIX (Simplified version) (i) g =DTq

(ii) Ui = Bg

(iii) q = Bg + e

q is the total commodity output vector;

Bg is the intermediate input vector

and e is the total final demand input vector exogenously specified by users

(q = Bg + e is the accounting balance between the supply

and total disposition of each and every commodity)

Multiply both sides of equation (iii) by D:

We obtain (iv) Dq = DBg + De

From equation (i) Dq = g we substitute Dq by g in (iv)

g = DBg + De and we isolate g

(I-DB) g = De to obtain the impact equation:

g = (I-DB)-1 De This is a simplified version of an economy without leakages (Imports, etc.)

Page 62: Input Output Framework Workshop Industry Accounts …

62

THE NATIONAL INPUT-OUTPUT

“OPEN” MODEL

• (I-DB)-1 D represents an open IO model in a

closed economy with no imports of goods and

services and no inventory stocks

• Leakages flows originating from outside the

business sector or from production in a

previous year

1. Imports (µ)

2. Withdrawals from inventory ()

3. Other, e.g., disinvestment of machinery

and equipment as scrap

Page 63: Input Output Framework Workshop Industry Accounts …

63

REFORMULATING THE MODEL

• To account for leakages the solution is re-

written as:

g = [I-D(I--)B]-1D

• And the impact matrix becomes:

[I-D(I--)B]-1 per dollar of industry output

[I-D(I--)B]-1D per dollar of commodity output

Page 64: Input Output Framework Workshop Industry Accounts …

64

Output generated (With

leakages) *

Industry 1 Industry 2

Total 16.318246 7.540682

x .2 x .4

GDP 3.2636492 3.0162728 Sum = 6.3

*Manufactured goods 0.2

Other goods 0.1

Services 0.03

Page 65: Input Output Framework Workshop Industry Accounts …

65

Regionalization of the

I/O Model

Page 66: Input Output Framework Workshop Industry Accounts …

66

Shows the links between final demands and total industry outputs A simple regional IO model

g = [I - DRB] -1 D(Rf + x)

g = gross outputs by industry (ind. by prov.)

D = market share matrix (ind. by com. by prov.)

B = input coefficients (com. by ind. by prov.)

R = regional import coefficients (com. by prov. by prov.)

f = domestic final demands (com. by prov.)

x = exports (com. by prov.)

Inter-industry transactions Industrial dimension of final expenditures

exports Domestic final

expenditures

Regional imports

coefficients

Page 67: Input Output Framework Workshop Industry Accounts …

67

OUTPUTS OF MODEL • Direct Impacts - Industry output delivered to final

demand, the value-added associated with this output

as well as other supply to final demand directly

• Indirect Impacts - Industry output delivered to other

industries, the value-added associated with this

output as well as other supply to industries

• Total Impact = Direct + Indirect Impacts

Impacts can be expressed in terms of:

- Production (Gross Output) - Value-added (GDP)

- Labour Income - Imports

- Employment - Resources

• Multiplier - Ratio of total impact to exogenous shock

Page 68: Input Output Framework Workshop Industry Accounts …

68

Input-Output simulation of an expenditure of $100 and the impact on the business sector

$45.00$36.82

$81.82

$30.00

$24.55

$54.55

$25.00

$20.45

$45.45

$0.00

$50.00

$100.00

$150.00

$200.00

Direct effects Accumulated indirect effects Total Impact

leakages (imports)

Value Added (GDP)

Business sector produced

inputs

Page 69: Input Output Framework Workshop Industry Accounts …

69

AAFC I/O Model

Page 70: Input Output Framework Workshop Industry Accounts …

70

No Code Industries (W)

1 111400 Greenhouse, Nursery and Floriculture Production

2 111A00 Crop Production (except Greenhouse, Nursery and Floriculture Production

2a 111A01 Wheat

2b 111A02 Feed grain

2c 111A03 Oilseed

2d 111A04 Potatoes

2e 111A05 Fruits & Vegetables

2f 111A06 Other Crops

3 112500 Animal Aquaculture

4 112A00 Animal Production (except Animal Aquaculture)

4a 112A01 Dairy

4b 112A02 Cattle

4c 112A03 Hogs

4d 112A04 Poultry and eggs

4e 112A05 Other livestock

7 115100 Support Activities for Crop Production

8 115200 Support Activities for Animal Production

Page 71: Input Output Framework Workshop Industry Accounts …

71

Statistics Canada

System of National Accounts

Input-Output Division

Consulting and Marketing *NOTE: DETAIL MAY NOT ADD PROPERLY DUE TO ROUNDING AND SUPPRESSION OF CONFIDENTIAL COMMODITIES

2001 Output table modified basic price (industries # 1 to # 142) preliminaryNAICS

Public aggregation level W

Current dollars (in millions)

National public table

Industries

No. 1 2a 2b 2c 2d 2e 2f 3 4a 4b 4c 4d 4e 5

Code 111400 111a01 111a02 111a03 111a04 111a05 111a06 112500 112a01 112a02 112a03 112a04 112a05 113000

Commodities Description

Greenhouse

, Nursery

and

Floriculture

Production

Wheat Feed grain Oilseed Potatoes Fruits &

Vegetables

Other Crops Animal

Aquaculture

Dairy Cattle Hogs Poultry and

eggs

Other

livestock

Forestry

and

Logging

No. Code Description

1 0010 Cattle and calves 0 0 0 0 0 0 0 0 0 7976 0 0 0 0

2 0030 Hogs 0 0 0 0 0 0 0 0 0 0 3850 0 0 0

3 0040 Poultry 0 0 0 0 0 0 0 0 0 0 0 1760 0 0

4 0059 Other live animals 0 0 0 0 0 0 0 0 0 0 0 0 344 0

5 0071 Wheat, unmilled, excluding imputed feed 0 2842 0 0 0 0 0 0 0 0 0 0 0 0

6 0072 Wheat, unmilled, imputed feed 0 173 0 0 0 0 0 0 0 0 0 0 0 0

7 0081 Grain corn, excluding imputed feed 0 0 717 0 0 0 0 0 0 0 0 0 0 0

8 0082 Corn fodder, imputed feed 0 0 148 0 0 0 0 0 0 0 0 0 0 0

9 0083 Barley, excluding imputed feed 0 0 479 0 0 0 0 0 0 0 0 0 0 0

10 0084 Other grains, excluding imputed feed 0 0 172 0 0 0 38 0 0 0 0 0 0 0

11 0085 Other grains and fodder, imputed feed 0 0 1244 0 4 0 43 0 0 0 0 0 0 0

12 0090 Fluid milk, unprocessed 0 0 0 0 0 0 0 0 4154 0 0 0 0 0

13 0100 Eggs in the shell 0 0 0 0 0 0 0 0 0 0 0 551 0 0

14 0110 Honey and beeswax 0 0 0 0 0 0 0 0 0 0 0 0 84 0

15 0130 Fresh fruit, excluding tropical 0 0 0 0 0 544 0 0 0 0 0 0 0 0

16 0141 Potatoes, fresh or chilled 0 0 0 0 675 0 0 0 0 0 0 0 0 0

17 0142 Other vegetables, fresh or chilled 865 0 0 0 0 596 704 0 0 0 0 0 0 0

18 0151 Hay and straw, excluding imputed feed 0 0 0 0 0 0 226 0 0 0 0 0 0 0

19 0152 Hay and straw, imputed feed 0 0 0 0 0 0 2143 0 0 0 0 0 0 0

20 0169 Seeds, excluding oil seeds 0 0 0 0 0 0 58 0 0 0 0 0 0 0

21 0170 Nursery stock, flowers, and other horticulture products 1749 0 0 0 0 0 0 0 0 0 0 0 0 0

22 0181 Canola 0 0 0 1257 0 0 0 0 0 0 0 0 0 0

23 0182 Soybeans and other oil seeds 0 0 0 593 0 0 0 0 0 0 0 0 0 0

Page 72: Input Output Framework Workshop Industry Accounts …

72

Statistics Canada

System of National Accounts

Input-Output Division

Consulting and Marketing *NOTE: DETAIL MAY NOT ADD PROPERLY DUE TO ROUNDING AND SUPPRESSION OF CONFIDENTIAL COMMODITIES

2001 Input table, modified basic price (industries # 1 to # 142) preliminaryNAICS

Public aggregation level W

Current dollars (in millions)

National public table

Industries

No. 1 2a 2b 2c 2d 2e 2f 3 4a 4b 4c 4d 4e 5

Code 111400 111a01 111a02 111a03 111a04 111a05 111a06 112500 112a01 112a02 112a03 112a04 112a05 113000

Commodities Description

Greenhouse

, Nursery

and

Floriculture

Production

Wheat Feed grain Oilseed Potatoes Fruits &

Vegetables

Other Crops Animal

Aquaculture

Dairy Cattle Hogs Poultry and

eggs

Other

livestock

Forestry

and

Logging

No. Code Description

1 0010 Cattle and calves 0 0 0 0 0 0 0 0 29 1310 0 4 8 0

2 0030 Hogs 0 0 0 0 0 0 0 0 0 0 34 0 8 0

3 0040 Poultry 0 0 0 0 0 0 0 0 0 0 0 367 26 0

4 0059 Other live animals 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 0071 Wheat, unmilled, excluding imputed feed 1 31 45 49 26 27 18 0 0 0 0 0 0 0

6 0072 Wheat, unmilled, imputed feed 0 0 0 0 0 0 0 0 17 113 31 7 4 0

7 0081 Grain corn, excluding imputed feed 0 10 15 16 9 9 6 0 0 0 0 0 0 0

8 0082 Corn fodder, imputed feed 0 0 0 0 0 0 0 0 48 43 34 21 3 0

9 0083 Barley, excluding imputed feed 0 8 12 13 7 7 5 0 0 0 0 0 0 0

10 0084 Other grains, excluding imputed feed 0 3 4 4 2 2 2 0 0 0 0 0 0 0

11 0085 Other grains and fodder, imputed feed 0 0 0 0 0 0 0 0 229 693 250 94 26 0

12 0090 Fluid milk, unprocessed 0 0 0 0 0 0 0 0 0 0 0 0 0 0

13 0100 Eggs in the shell 0 0 0 0 0 0 0 0 0 1 0 0 0 0

14 0110 Honey and beeswax 0 0 0 0 0 0 0 0 0 0 0 0 0 0

15 0130 Fresh fruit, excluding tropical 0 0 0 0 0 0 0 0 0 0 0 0 0 0

16 0141 Potatoes, fresh or chilled 0 5 7 8 5 5 3 0 0 0 0 0 0 0

17 0142 Other vegetables, fresh or chilled 148 8 5 10 5 2 4 0 0 0 0 0 0 0

18 0151 Hay and straw, excluding imputed feed 0 0 0 0 0 0 0 0 1 1 0 0 0 0

19 0152 Hay and straw, imputed feed 0 0 0 0 0 0 0 0 455 1001 441 202 44 0

20 0169 Seeds, excluding oil seeds 36 3 3 3 2 1 1 0 0 0 0 0 0 0

21 0170 Nursery stock, flowers, and other horticulture products 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Page 73: Input Output Framework Workshop Industry Accounts …

73

Statistics Canada

System of National Accounts

Input-Output Division

Consulting and Marketing *NOTE: DETAIL MAY NOT ADD PROPERLY DUE TO ROUNDING AND SUPPRESSION OF CONFIDENTIAL COMMODITIES

2001 Final Demand table, modified basic price (preliminary)NAICS

Aggregation level W

Current dollars (in millions)

National public table

Categories

No. 1 2 3 4 5 6 7 8 9 10 11 12

Code PE0011 PE0012 PE002 PE003 PE004 PE005 PE006 PE007 PE008 PE009 PE010 PE011

Commodities Description

Personal

expenditure

s, food and

non-

alcoholic

beverages

Personal

expenditure

s, food

(imputed)

Personal

expenditure

s, alcoholic

beverages

bought in

stores

Personal

expenditure

s, tobacco

products

Personal

expenditure

s, men's

and boy's

clothing

Personal

expenditure

s, men's

and boy's

clothing,

repair and

alterations

Personal

expenditure

s, women's

and

children's

clothing

Personal

expenditure

s, women's

clothing,

repair and

alterations

Personal

expenditure

s, footwear

Personal

expenditure

s, shoe

repair

Personal

expenditure

s, gross

imputed

rent

Personal

expenditure

s, gross

rent paid

No. Code Description

1 0010 Cattle and calves 0 237 0 0 0 0 0 0 0 0 0 0

2 0030 Hogs 0 98 0 0 0 0 0 0 0 0 0 0

3 0040 Poultry 0 37 0 0 0 0 0 0 0 0 0 0

4 0059 Other live animals 0 3 0 0 0 0 0 0 0 0 0 0

5 0071 Wheat, unmilled, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

6 0072 Wheat, unmilled, imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

7 0081 Grain corn, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

8 0082 Corn fodder, imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

9 0083 Barley, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

10 0084 Other grains, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

11 0085 Other grains and fodder, imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

12 0090 Fluid milk, unprocessed 0 9 0 0 0 0 0 0 0 0 0 0

13 0100 Eggs in the shell 296 2 0 0 0 0 0 0 0 0 0 0

14 0110 Honey and beeswax 56 3 0 0 0 0 0 0 0 0 0 0

15 0130 Fresh fruit, excluding tropical 1140 60 0 0 0 0 0 0 0 0 0 0

16 0141 Potatoes, fresh or chilled 233 13 0 0 0 0 0 0 0 0 0 0

17 0142 Other vegetables, fresh or chilled 1723 78 0 0 0 0 0 0 0 0 0 0

18 0151 Hay and straw, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

19 0152 Hay and straw, imputed feed 0 0 0 0 0 0 0 0 0 0 0 0

20 0169 Seeds, excluding oil seeds 0 0 0 0 0 0 0 0 0 0 0 0

21 0170 Nursery stock, flowers, and other horticulture products 0 0 0 0 0 0 0 0 0 0 0 0

22 0181 Canola 0 0 0 0 0 0 0 0 0 0 0 0

Page 74: Input Output Framework Workshop Industry Accounts …

Statistics Canada’s

SPSD/M

The Social Policy Simulation

Database and Model

Page 75: Input Output Framework Workshop Industry Accounts …

75

The SPSD/M

• Statistics Canada’s SPSD/M is an integrated database and tax/transfer simulation model

The SPSD/M concentrates on calculating the first round impacts of Canadian tax/transfer policy on individuals and families

Income taxes, payroll taxes, cash transfers, and commodity taxes.

It makes use of I/O data and modelling techniques to estimate the distributional impact of commodity taxes on families and individuals

http://www.statcan.ca/bsolc/english/bsolc?catno=89F0002X

Page 76: Input Output Framework Workshop Industry Accounts …

76

Models based on I-O Tables

1. Output Models

a) The Open Model

b) Closed Models

c) Interprovincial Model:

Requires (a) input-output tables for each

province.

(b) a matrix of commodity flows

between provinces.

2. Price models: cost push type models.

3. Market analysis models

Page 77: Input Output Framework Workshop Industry Accounts …

77

SUMMARY OF USES OF INPUT-OUTPUT

ACCOUNTS(1)

Benchmarks for GDP by industry.

Measurement of real growth of:

(i) industry output

(ii) commodity output or use

(iii) final demand

Development of measures of multi-factor productivity.

Page 78: Input Output Framework Workshop Industry Accounts …

78

SUMMARY OF USES OF INPUT-OUTPUT

ACCOUNTS(2) Impact analyses:

(i) Output.

(ii) Intensity studies,

Energy

employment

taxes, etc.

Analysis of the industrial structure of the economy..

Effective tariff studies.

Studies of price movements.

Other.

Page 79: Input Output Framework Workshop Industry Accounts …

79

References

• Hoffman et al., User’s Guide to Statistics Canada Structural Economic Models, Input-Output Division, Statistics Canada, 1980.

• Miller, E. Ronald and Blair, Peter D., Input-Output Analysis: Foundations and Extensions, Prentice-Hall, New Jersey, 1985.

• United Nations, Handbook of Input-Output Table Compilation and Analysis, Series F, No. 74, New York, 1999.

Page 80: Input Output Framework Workshop Industry Accounts …

80

Documents which may be consulted (1):

1. Statistics Canada Catalogue 15-510-XPB, The Input-Output Structure of the

Canadian Economy, 1961-1981 (Occasional).

2. Statistics Canada Catalogue 15-511-XPB, The Input-Output Structure of the

Canadian Economy in Constant Prices, 1961-1981 (Occasional).

3. Chenery, H. B., and Clark, P.G., Inter-Industry Economics, Wiley, New York, 1959.

4. Miernyk, W.M., The Elements of Input-Output Analysis, Random House,

New York, 1965.

5. O’Connor, R., and Henry, E.W., Input-Output Analysis and Its Applications, Hafner

Press, New York, 1975.

6. Lal, K., “Compilation of Input-Output Tables: Canada”, in J.V. Skolda (ed.),

Compilation of Input-Output Tables, Proceedings of 17th General Conference of the

International Association for Research in Income and Wealth, 1981.

7. Lal, K., “Canadian Input-Output Tables and their Integration with Other Sub-

Systems of the National Accounts” Vienna, Austria, 1985.

8. Statistics Canada Catalogue, 13-589-XPE, Guide to the Canadian System of

National Accounts.

Page 81: Input Output Framework Workshop Industry Accounts …

81

Documents which may be consulted (2):

9. Statistics Canada Catalogue, 15-201-XIE, The Input-Output Structure

of the Canadian Economy 1999-2000 (Annual).

10. Statistics Canada Catalogue, 15-546-XPE, Interprovincial and

international Trade in Canada, 1992-1998 (Occasional).

11. Statistics Canada Catalogue, 15-601-XPE, No. 2: Service Industries in

the Canadian Input-Output Accounts, Sources of Data and Methods of

Estimation. (Occasional).

12. United Nations, System of National Accounts, 1993.

13. Erik Poole, A Guide to Using the Input-Output Model of Statistics

Canada, Technical Series, #58, Input-Output Division.

14. Statistics Canada Catalogue no. 15FOO77GIE, Systems of National

Accounts, A Guide to Deflating the Input-Output Accounts – Sources

and methods 2001.

15. The Derivation of Provincial (Inter-regional) Trade Flows: The

Canadian Experience, Technical series #98 by Pierre A. Généreux and

Brent Langen, Statistics Canada

Page 82: Input Output Framework Workshop Industry Accounts …

82

The International Input-Output Association (IIOA) http://iioa.org/index.asp

United Nations: About the System of National Accounts 1993

http://unstats.un.org/unsd/sna1993/introduction.asp

Bureau of Economic Analysis (BEA): U.S. Economic Accounts

http://www.bea.doc.gov/

Statistics Canada : Input-Output Accounts

http://www.statcan.ca:8082/english/themes/sna-scn/sub/io.htm

Page 83: Input Output Framework Workshop Industry Accounts …

83

Selected articles from Statistics Canada

Sport Utility Vehicles: Driving Change by Erik Magnusson Manufacturing, Construction and

Energy Division; Catalogue no. 11-621-MIE2005020

http://www.statcan.ca/english/research/11-621-MIE/11-621-MIE2005020.htm#3

The Soaring Loonie and Prices: Lower Inflation for Consumers? by Radu Chiru,

Prices Division Catalogue no. 11-621-MIE2004014

http://www.statcan.ca/english/research/11-621-MIE/11-621-MIE2004014.htm

Multipliers and Outsourcing: How industries interact with each other and affect GDP; by Philip

Cross and Ziad Ghanem

http://www.statcan.ca/bsolc/english/bsolc?catno=11-010-X20060019000

Rising energy prices: How big a shock to consumers and industry? by Philip Cross and Ziad

Ghanem

http://www.statcan.ca/bsolc/english/bsolc?catno=11-010-X20050118806

Canada's natural resource exports by Philip Cross and Ziad Ghanem

http://www.statcan.ca/bsolc/english/bsolc?catno=11-010-X20050057894

Offshoring and Employment in Canada: Some Basic Facts by Anick Johnson and René

Morissette

http://www.statcan.ca/english/research/11F0019MIE/11F0019MIE2007300.htm