Integrated Economic Statistics Statistics Canadas Experience Catherine Van Rompaey September 2013

Integrated Economic StatisticsStatistics Canada’s Experience

Catherine Van Rompaey

September 2013

Overview Integration in the Canadian SNA

• Current program and its recent evolution

• Recent and upcoming comprehensive revisions

Statistics Canada’s business register Integrated Business Statistics Program

(IBSP) Issues and challenges for the Canadian

macroeconomic accounts

Core macroeconomic accounts Annual (regional)

• Provincial input-output accounts (supply-use)• Provincial economic accounts• Provincial GDP by industry

Quarterly• National GDP income and expenditure based• Institutional sector accounts including financial

account and balance sheet• Balance of payments

Monthly • GDP by industry in real terms

Provincial Input-Output Accounts

IOIC IOIC IOFDC

= + =

+ +

+=

Outputs = Inputs

=

Value-Added GDP by Industry

Expenditure-Based GDP

Total Inputs of Industries

Gross Output of

Commodities

Gross Output of Industries

Intermediate Inputs of

Industries

IOC

C

Intermadiate Use of Primary Inputs

(8 x 235) IOC

C

Final Use of Primary Inputs

(8 x 235)

Income-Based GDP

Final Demand Table

(473 x 278)IOC

C Output Table (473 x 235) IO

CC Input Table

(473 x 235) IOC

C

Other programs and extensions Labour and multifactor productivity

Environmental accounts • Flow accounts, natural resource stocks

Satellite accounts • Tourism, Non profit sector, R&D, Culture

Special studies and analyses• Experimental GDP by firm size, municipalities• Underground economy

The Canadian SNA: recent evolution Mid 1980s

• National SNA programs fully integrated

Mid 1990s • Significant investments in provincial economic statistics to

meet policy objectives, integrated regional accounts

• Comprehensive historical revision SNA 1993

2012• Comprehensive historical revision SNA 2008

Future• Ongoing targeted comprehensive revisions

Comprehensive revision 2012 Quality

• Compensation of employees, trade in commercial services, dividends in the household sector

Classification systems • Sectors: NPISH, financial vs. nonfinancial, aboriginal

government

• Industries and products: introduction of NAPCS

• Final demand: international trade, household expenditures

Relevance• R&D and military capital, consumption of fixed capital,

market value of equity

Current and future agenda

2014/15• GFS implementation , COFOG

• FISIM and insurance

• Production account by sector

• Modernization of capital stock

• Actual final consumption

• Interest and dividend flow matrix

Longer term • Goods for processing and merchanting

• Pension liabilities

• Environmental liabilities

• Financial derivatives

• Head office industry

• Quarterly sectored natural resources wealth

• BoP: improvements and convergence to standards

• Residential land and structures

• Micro macro linkages for households

• Other changes in assets and revaluation accounts

Statistics Canada’s Business Register Built and updated with a comprehensive universe of

administrative data

Use as survey frame but also statistical mechanism• For example: benchmarks for compensation of

employees, operating surplus allocated by industry

Improved via survey feedback

Profiling of large complex units via Entreprise Portfolio Manager program

23-04-10Statistics Canada • Statistique Canada10

Coverage : Sources of Information

Primary source of information is the Business Number registration process

Registration process in Canada Revenue Agency for all major taxation programs

Unique identification number BR maintained with administrative data

• 2.85 million simple businesses

• 20 thousand complex businesses (Approx. 200,000 OEs)


Legal Operating Entity Types

• Corporations

• Sole Proprietors

• Partnerships

• Government Institutions

• Trusts

Recent Evolution

Prior to 2008

January 2008 to December 2010

January 2011

CFDB:Corporations, Employers &

GST Filers > 30K

New BRS:Corporations, Employers &

GST Filers > 30K

Sole Proprietors & GST Filers < 30K added

BRS:Corporations, Employers &

GST Filers > 30K

Sole Proprietors & GST Filers < 30K added

Addition of Sole Proprietors with no BN

Reporting Capabilities

Organizational and accounting practices differ from business to business

Properly identify the reportable data for each operating entity

Define types of “Responsibility Centers” associated with data reported



Responsibility Centres Investment Centre

• Controls revenues, costs and investment funds

Profit Centre • Measures the performance of a division, product line,

geographical area, etc.

Revenue Centre • Responsible for generating revenue

Cost Centre • Production - Concerned with making a product• Support - Provides a service


Standardized view of the operations for

sampling purposes The information required for assigning statistical

indicators is taken from the Responsibility Centers

Four statistical indicators:

Enterprise CompanyEstablishmentLocation

Statistical Indicators


BR Maintenance: Automatic Update Processes

Administrative information made available at the BN level on a monthly basis 1.Strong base towards a complete coverage of the

business population

2.Dimensions required to identified sub-populations for stratification


Administrative data usage

Tombstone information• Legal and Operating Names

• Business Address (***Geographical dimension)

• Legal Types

• Incorporation Information

• International Activity Codes

• Non-profit Codes



Other administrative information: • Activity Description

• Business Account Status

• Ownership relationships - Schedule 9 of Corporation Income Tax Program



Size values – Key indicators• GST Sales

• Revenue, Expenses & Assets

• Number of Employees & Salary & Wages

Integration in economic surveys Statistics Canada previously had 58 business

surveys in the Unified Entreprise Survey (UES)• Manufacturing, distributive trades, services

Good practices :• Harmonization of content across economic surveys aligned

to SNA needs

• Use of tax information

• Use of generalized systems for data processing

Now going further with the new Integrated Business Statistics Program (IBSP)

Objectives of the IBSP Simplify and modernize processes Improve timeliness Reduce response burden Realize efficiencies Reduce development and maintenance

costs

Features of the IBSP Implemented in phases across all survey

programs: annual and sub annual Use of business register as central frame Multi-modal collection emphasizing electronic

data reporting, active collection management Modular questionnaires with harmonized

content Further integration of tax data as source for

financial information Common approaches to survey estimation

and processing, meta-data driven

PH

AS

E 1

Program Reference Year

Existing UES surveys (manufacturing, distributive trades and services)

2013

Capital Expenditure surveys (actual, preliminary and intentions) – 2 survey periods

2013

PH

AS

E 2

Energy surveys (13 annual, 2 quarterly and 7 monthly)

2014

Transportation surveys (Annual and quarterly Trucking Financial and Passenger Bus)

2014

RDCI (Research & Development in Canadian Industries)

2014

PH

AS

E 3

Agriculture surveys 2015

IOFD program (Enterprise Financial Statistics made up of 3 surveys - Quarterly Survey of Financial Statements, Annual Financial and Taxation Statistics and Survey of Suppliers of Business Financing)

2015

Integrating Surveys - Schedule

SNA input to survey programs Develop harmonized content that meets

essential SNA requirements • Principal statistics and characteristic detail

Analysis and feedback on data quality Collaborative work on program development Strategy for evaluating time series breaks

due to statistical effects Improve SNA sector codes on BR

Recent organizational changes facilitate collaboration, process flows mobility of staff

Canadian SNA challenges Managing scope of comprehensive revisions across

complex, integrated system

Lack of flexibility due to fiscal requirements

Maintaining time series continuity across the dimensions of the program

Rethinking integration of historical estimates and revision policy

Documentation and communicating changes to users Needed investments to maintain relevance (environmental

accounts, G20 data gaps)

Documents

Integrated Economic Statistics Statistics Canadas Experience Catherine Van Rompaey September 2013