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All 5 table are presented in the form of matrixes showing the classification of products and branches in a particular national economy.
Each line in table 1, showing products, is to be found in table 4 and 5
Each column in table 1, Showing branches, is to be found in tables 2 and 3.
1. Aim – calculate the amounts of inter consumption by products and by branches and to get the matrix of technical ec ratios, characterizing the ec productive structure
6 assumptions
1/ each branch is to be regarded as performing one kind of activity or producing one particular product
2/trade or commerce line is to be empty since it doesn’t produce any physical product
3/administration line is to be empty since it produces non-market service for final consumption (no ph product)
4/ territorial adjustment line is to be empty since it appears in table 4 and 5
5/ CIF/FOB adjustment line is to be empty since it appears only in tables 4 and 5
6/ additional column called “fectitious branch” is to be added to register the amount of inter services rendered by financial instit
2. Table includes 3 lines (inter consumption by br, Gross value added and output by br)
1/for a fictitious branch the amount of value added is to be equl to the amount of inter consumption by this branch but with the opposite sign so the output by br is to be equal 0
3. Table allows to get: output by product’s figures, out of corresponding, output by br figures.
ONE Fatal products adjustments
Is made for products produced simultaneously with other products due to the tech ot production process
TWO agricultural product’s adjustment
Is made for agricultural products processed by agricultures and included in this brunch
THREE residual sale’s adjustment
Is made for products which are not administrative services but which shown, produced and sold by admin institutions
1/ the total amount of each adj-nt is to be equal 0
2/ the amounts shown in output by product line are to be found in the first column of table 4
4. Shows the amount of output produced within the national economy and imported from abroad
Include – output by pr, import of goods, import of services, VAT, trade commercial margin, transport margins, customs duties, other taxes on products, subsidies on pr (minus), GIF/FOB
1/ trade margin present the output of trade branch – they are accounted as trade services table 4 col 1. In order to avoid double registration we exclude trade margin (allocated among products of other branches) at the crossing of line trade and column trade margins ---so the total trade margin column will be ZERO
2/CIF/FOB – while being imported products may b assured by resident (and included in output by product colm) OR non-resident (and included in import of services) We subtract this amount –at crossing trade line and CIF/FOB and –at the crossing CIF/FOB and import of goods
5. Matrix which shows how and by which inst units different products presented in lines are used or consumed
Include – Final consumption, government final consumption (individ+collective), non-profit inst serving households (NPISH), Gross capital formation (gross fixed capital formation, variation of stocks, acquisition), export
1/ territorial correction – shown at crossing ter correction and export of services column –show the amount of expenditure of non-resid within national ec.
2/ FC expenditure of h/h includes nonres exp within national ec and DOESN”T contain resid exp abroad! Balance of these amounts shown at crossing ter correction and FC exp of h/h in order to get net amount
spent by residents.
Sequence of accounts
Aim – to show dif resourses and uses in relation to dif intit units, sectors and kinds of activities and non inrelation to branches and products as it was within input-output framework
Seq of ac – set of:
1. Production account
2. Generation of income account
3. Allocation of primary account
4. Secondary distribution of income account
5. Use of income account
6. Capital account
Which are interconnected by dif balances and aggregates
One rule is to be retained here: cosing balance of previous accounts (shown in Uses part) is to be shown as opening balance of a subsequent account in Resourses
Each of 6 accounts has a particular number of resources and Uses typical to most of instit units. However, when preparing a sequence of accounts for a particular sector one should aware that some resourses and uses are to be adjusted or omitted
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