I/O Framework Workshop Industry Accounts Division Statistics Canada Fabienne Leclerc & Ronald Rioux...

I/O Framework WorkshopIndustry Accounts DivisionStatistics CanadaFabienne Leclerc & Ronald Rioux U of OttawaJune 20, 2008

Industry Accounts Division

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Outline of the Workshop

Overview of the Input-Output Accounts Structure within Statistics Canada Divisional Overview Mandate Production Cycle Structure of Input Output tables Case Study: The Clothing Industry Accounting Identities Valuation & Commodity Balance Classifications Input-Output Framework (National & Provincial) Applications (Database, models, multipliers) Publication References

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NATIONAL ACCOUNTS AND ANALYTICAL STUDIES

BUSINESS AND TRADE STATISTICS

SOCIAL, INSTITUTIONS AND LABOUR

STATISTICS

INFORMATICS AND METHODOLOGY

MANAGEMENT SERVICES

COMMUNICATIONS AND OPERATIONS

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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

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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.

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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.

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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.

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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

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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.

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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

Relationship between the I/O Framework and the SNA

National Input-Output Tables

Satellite AccountsIncome 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

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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

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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.

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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.

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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)

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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, 112111400 Greenhouse, nursery and floriculture production 1114111A00 Crop production (except greenhouse, nursery and floriculture production) 1111-1113, 1119112500 Animal aquaculture 1125112A00 Animal production (except animal aquaculture) 1121-1124, 1129

1B 113113 113

1130 113113000 Forestry and logging 113

1C 114114 114

1140 114114000 Fishing, hunting and trapping 114

1D 115115 115

1150 115115100 Support activities for crop production 1151115200 Support activities for animal production 1152115300 Support activities for forestry 1153

Support activities for agriculture and forestrySupport 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 Industriesfor 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

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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, 1121 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 1132 113 Forestry and logging 113



3 1C Fishing, hunting and trapping 1143 114 Fishing, hunting and trapping 114



4 1D Support activities for agriculture and forestry 1154 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*

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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).

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


Historical link (L) level sequential code and category title

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


Mnemonic ' W ' code

1 Grains1 Grains

5 Wheat, unmilled5 0071 Wheat, unmilled, excluding imputed feed6 0072 Wheat, unmilled, imputed feed

6 Corn, barley, oats and other grains7 0081 Grain corn, excluding imputed feed8 0082 Corn fodder, imputed feed9 0083 Barley, excluding imputed feed

10 0084 Other grains, excluding imputed feed11 0085 Other grains and fodder, imputed feed

2 Other agricultural products2 Live animals

1 Cattle and calves1 0010 Cattle and calves

2 Hogs2 0030 Hogs

3 Poultry3 0040 Poultry

4 Other live animals4 0059 Other live animals

3 Other agricultural products7 Fluid milk, unprocessed

12 0090 Fluid milk, unprocessed8 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

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


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 vehicles29

30 PE029 Motor vehicles parts and accessories2

16

17 PE016 Furniture and floor covering18

19 PE018 Household appliances3

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36 PE035 Recreation, sporting and camping equipment40

41 PE040 Jewellery and watches

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4

5 PE004 Men's and boy's clothing6

7 PE006 Women's and children's clothing8

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 goodsPersonal 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 appliancesPersonal 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


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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 expenditures52 categories of current investment in machinery and equipment53 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 imports1 category of interprovincial exports172

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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

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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 factors8 X 172

GDP income based

Gross output of industries

Total use of industries GDP

expenditure based

=

Industries Industries Categories

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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

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PROVINCE/

TERRITORYEXPORTS IMPORTS

Newfoundland

Prince Edward Island

Nova Scotia

New Brunswick

Québec

Ontario

Manitoba

Saskatchewan

Alberta

British Columbia

Yukon Territories

Northwest Territories

Nunavut

Government Abroad

Ix Pxi IM PMi

Ix =International exportsPxi=Provincial exportsIm=International importsPmi=Provincial imports

Categories reflect 719 commoditiesand indirect taxes

on products by province.

Interprovincial Trade Flow Matrix

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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.

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CONVENTIONS FORINTERPROVINCIAL 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.

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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.

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Case study: The Clothing industry

• The Annual Survey of Manufactures (ASM) provides 2 sets of data:

-financial data

-commodities data

Financial data:

• based on Revenues and expenditures declared by locations, inventory changes and fuel consumption

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The industry dimension: NAICS 315900

• Data from ASM plus head-office and other distribution• Canada• Cell C2054 – Total revenu manufacturing, in thousands

2001 2002 2003 2004

NA 13,099 0 4,752 0

SD 120,548 139,159 125,970 108,703

TAX 152,637 155,105 170,807 106,396

TOTAL 286,284 294,264 301,529 215,097

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The industry dimension-continued

• Commodity data:

• Based on the ASM List of goods, which covers 1417 distinct commodities.

• The ASM commodity estimates are produced at the NAICS6 and NAICS3 by province based on in-sample units (collected or imputed).

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The industry dimension-continued

• Although ASM publish only the portion above the Royce-Maranda threshhold, IAD receives the entire survey.

• IAD allocates the ASM product list commodities to IO commodities – from 1417 goods to 719.

• IAD built Material Inputs and Output for each industry using ASM data

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The industry dimension- continued

• IEAD provides information on Wages, SLI, Mixed income and Surplus, that are incorporated to the industry IO table.

• IAD redistribute expenses from Head Office, Software product development and Non-residential Rent to each industry

• Several other surveys provides IAD with data on services inputs and outputs

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The industry dimension- continued

• Data confrontation exercises are done during this process with other data sources, like GIFI, T4, etc.

• IAD try to anchor Material inputs and Total outputs for each industry to NAICS 6 per province controls from ASM

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Input-output table for 315900

IO TableInd. Analysis

Level1Ind. Analysis Level2

2001F

2002F

2003F

2004P

Input EMS Energy 2226 2849 2770 3140

Materials 156686 160619 150289 116197

Services 26850 29120 31040 26961

EMS Total 185762 192588 184099 146298

Net Tax Net Tax 668 1078 2255 2042

Net Tax Total 668 1078 2255 2042

GDP Wages 85187 103719 100833 99459

SLI 7404 8638 10080 10676

Mixed Income 5271 4983 5017 5119

Surplus 49252 36275 31451 41967

GDP Total 147114 153615 147381 157221

Input Total 333544 347281 333735 305561

Output EMS Materials 320223 328749 318596 293059

Services 13321 18532 15139 12502

EMS Total 333544 347281 333735 305561

Output Total 333544 347281 333735 305561

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The commodity dimension

• For each of the 719 IO commodities, IAD provides a tridimensional picture: the Demand side, the supply side and Interprovincial trade flow.

• This picture includes international imports and exports

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Some definitions…

• Total Demand: Inputs + Final demand• Inputs: ‘Intermediate Demand’, i.e. all

industries using this commodity to produce output.

• Final demand: ’End users’, i.e. Personal Expenditures, M&E, changes in inventories, International Exports, Re exports

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Definitions- continued

• Supply: All industries producing this commodity, plus 7 margins + imports + taxes.

• As usual in the SNA Supply must equal demand

• So industries and commodities should both be balanced

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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

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IPTF for commodity 1859 “Other clothing and accessories, excluding dressed furs and fur apparel”, 2004 preliminary

• The IPTF (interprovincial and international trade flows) shows the origin and destination of commodity 1859 by province and; the total supply and the total demand.

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Industry Balance Account level S (year 2004) 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 123,235.6 million dollars in the 2004 outputs table. The same value of total inputs of this industry of 123,235.7 million dollars is shown as the column total of the 2004 inputs table. The Gross Domestic Product inputs (at market price) shows as rows 52-

59 is 85,692.0 million (69.5 % of total) and the intermediate inputs of goods and services is 37,543.7 millions (30.5 % of total) shown as rows 1-51.

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Commodity Balance AccountLevel S (year 2004) 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 133,522.8 millions for all industries in the outputs table.

The Inputs table shows a total use of 66,062.4 millions of this commodity plus final demand total use of 67,460.4 millions equals 133,522.8 millions

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Input-Output IdentitiesGross Domestic Product Market Price

(2004) Inputs table total column

– sum of rows 52 to 59– GDP market price inputs

1,206,096.1

Plus Final Demand table total column– sum of rows 52-59– GDP Market price Final Demand

84,731.9

Equals GDP market price– Income side 1,290,828.0

Equals expenditures on GDP– grand total of Final Demand

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The relationships above are shown schematically (year 2004)

Inputs Final Demand Total

Row 1

2461

Row 51

Row 52

1291

GDP

Row 59

Total 2461 1291

1255 1,206 Intermediate

1,206 85

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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 105467.5Subsidies 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

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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

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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)

GDP by industry

Benchmarking

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Benchmarking

• The monthly indicators must be adjusted to the benchmarks provided by the Input-Output tables (interpolation)

• The sub-annual movements of the benchmarks are estimated using those of the indicators (extrapolation)

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Extrapolations

BenchmarkBenchmark Extrapolations from the benchmarkExtrapolations from the benchmark

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INPUT-OUTPUT DATA SOURCESI WITHIN STATISTICS CANADA

BUSINESS AND TRADE STATISTICS

INDUSTRY STATISTICS- Manufacturing Construction and Energy Division- Distributive Trades Division- Services Industries Division- Enterprise Statistics

ECONOMY WIDE STATISTICS- Investment and Capital Stock Division- Industrial Organization and Finance Division- International Trade Division- Prices Division

AGRICULTURE, TECHNOLOGY AND TRANSPORTATION STATISTICS- Agriculture Division- Transportation Division

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INSTITUTIONS AND SOCIAL STATISTICS - Culture, Tourism and the Centre for Education Statistics

- Health DivisionLABOUR AND HOUSEHOLD SURVEYS

- Labour DivisionSYSTEM OF NATIONAL ACCOUNTS - Income and Expenditure Accounts - Balance of Payments Division - Public Institutions Division - Environment Accounts

INPUT-OUTPUT DATA SOURCESI WITHIN STATISTICS CANADA

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INPUT-OUTPUT DATA SOURCES

II OTHER FEDERAL DEPARTMENTS AND AGENCIES

- Canada Revenue Agency (T4/T1/GIFI/GST files)

- Department of Supply and Services- Natural Resources Canada- Department of Finance- Treasury Board- Office of the Superintendent of Financial Institutions- R.C.M.P.- National Transportation Agency- Oceans Canada- Health Canada- Bank of Canada

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III OTHER SOURCES

- Provincial and Territorial Governments

- Municipalities

- Petroleum Services Association of Canada

- Colliers Canadian Real Estate Review

- TSE

- Investment Funds Institute of Canada

- Investor Protection Fund

- Canadian Life and Health Insurance Association

- Annual Reports

INPUT-OUTPUT DATA SOURCES

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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

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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

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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

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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

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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 17Tsp margin 3Wholesale margin 11Tax Margin 16GDP (factor) 50 50Total 200 3 11 16 200

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

Commodity description Purchaser Retail Wholesale Tax Transport Producerprice margin margin margin margin price

Household clothes washers & dryers 649,500 150,588 72,011 77,278 3,236 346,387Household dishwashers 280,364 67,472 35,144 32,881 2,247 142,620Mowers, snowblowers, sprinklers, etc. 900,237 210,820 97,498 106,054 15,828 470,037Non-electric furnaces & heating equipment 182 40 0 19 0 123Bulldozers, farm & garden tractors 218,225 43,594 18,369 25,198 2,465 128,599Other agricultural machinery 1,239 0 220 140 23 856Fans & air circulation units, not industrial 77,925 19,246 5,000 9,398 985 43,296Air conditioning equipment, wall & window 99,187 26,787 8,416 11,936 908 51,140Microwave ovens 250,749 74,033 42,759 29,880 7,608 96,469Small household appliances 1,467,926 350,628 151,615 176,002 13,685 775,996Electric furnace & other electric heating equipment 28,543 4,430 4,249 3,339 628 15,897Household refrigerators & freezers 981,700 246,917 109,615 117,299 5,014 502,855Household cooking equipment, excl. microwave ovens 853,151 302,492 112,172 101,224 7,700 329,563Telephone & related equipment, incl. facsimile 275,297 72,404 43,512 33,532 795 125,054

Wholesaling margins 0 0 0 0 0 700,580Retailing margins 0 0 0 0 0 1,569,451Transportation margins 0 0 0 0 0 61,122Indirect 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

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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

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: $15,000.00Producer’s price (factory in Ontario): $10,000.00Transportation margin (transporter from Manitoba) $ 5,000.00

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

63

APPLICATIONS

64

National time series in current price

• Example : electric power

•• 1992 1993 1994• G1 800 800 1000

• G2 - - 50

• G3 100 200 250

• S1 1000 1100 1200

• GDP 2500 2600 3000• TOTAL 4400 4800 5500

65

Example : electric power

1992 1993 1994G1 18.18 18.75 18.18G2 - - 0.91G3 2.27 4.17 4.55S1 22.73 22.92 21.82GDP 56.82 54.17 54.54

TOTAL 100.00 100.00 100.00

Relative price change in G3

Change of technology in G2

66

Outsourcing computer services

Data: Time-series C$ I/O Tables (M level)

Commodity #84: Business and computer services

Industries: #43 (NAICS 541) - Professional, scientific and technical services

& #44 (NAICS 561) - Administrative and support services

CANSIM Table: 381-0014

67

Business & Computer Services (commodity)

0

1

2

3

4

5

6

7

8

1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004

%

Sh

are

of

To

tal

Gro

ss O

utp

ut

Inputs Outputs Ind. 541 + 564

68

The National Input-Output Model

69

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

70

Suppose we have a market share matrix :

Com 1 Com 2 Com 3

Ind. 1: 1.0 0.5 0.3D =

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), andindustry 2 produces 70% of services.

71

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

72

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 producethem.

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

73

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 oftechnological 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.

74

For $4.60 output of industry 1, we need: .92 of com 11.84 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

75

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 totalof $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.

76

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.

77

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

78

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

79

COMMODITIES

(719 commodities)

INDUSTRIES

(300 industries)

FINAL DEMAND CATEGORIES

TOTALC I INV

G XI

XP

MI

MP

COMMODITIES

(719 commodities)

Intermediate inputs

Gross Output by

Commodity

INDUSTRIES

(300 industries) ProductionGross

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

80

Technological coefficients

Derived from the INPUT matrix

1ˆ gUB technological relationship

Represents the direct input requirements of intermediate inputs

81

Market share coefficients

Derived from the OUTPUT matrix

1ˆ qVD

Industry shares of production of each commodity are fixed

82

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

83

DERIVING THE IMPACT MATRIX (Simplified version)

(i) g =DTq(ii) Ui = Bg(iii)q = Bg + eq is the total commodity output vector;Bg is the intermediate input vectorand e is the total final demand input vector exogenously specified by users(q = Bg + e is the accounting balance between the supplyand total disposition of each and every commodity)Multiply both sides of equation (iii) by D:We obtain (iv) Dq = DBg + DeFrom 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 DeThis is a simplified version of an economy without leakages (Imports, etc.)

84

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

85

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

86

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

87

Regionalization of theI/O Model

88

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

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

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

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

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

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

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

x = exports (com. by prov.)x = exports (com. by prov.)

Inter-industry transactions Industrial dimension of final expenditures

exportsDomestic final expenditures

Regional importscoefficients

89

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

90

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 producedinputs

91

AAFC I/O Model

92

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

93

Statistics CanadaSystem of National AccountsInput-Output DivisionConsulting 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) preliminaryNAICSPublic aggregation level WCurrent dollars (in millions)National public table

IndustriesNo. 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 Description1 0010 Cattle and calves 0 0 0 0 0 0 0 0 0 7976 0 0 0 02 0030 Hogs 0 0 0 0 0 0 0 0 0 0 3850 0 0 03 0040 Poultry 0 0 0 0 0 0 0 0 0 0 0 1760 0 04 0059 Other live animals 0 0 0 0 0 0 0 0 0 0 0 0 344 05 0071 Wheat, unmilled, excluding imputed feed 0 2842 0 0 0 0 0 0 0 0 0 0 0 06 0072 Wheat, unmilled, imputed feed 0 173 0 0 0 0 0 0 0 0 0 0 0 07 0081 Grain corn, excluding imputed feed 0 0 717 0 0 0 0 0 0 0 0 0 0 08 0082 Corn fodder, imputed feed 0 0 148 0 0 0 0 0 0 0 0 0 0 09 0083 Barley, excluding imputed feed 0 0 479 0 0 0 0 0 0 0 0 0 0 010 0084 Other grains, excluding imputed feed 0 0 172 0 0 0 38 0 0 0 0 0 0 011 0085 Other grains and fodder, imputed feed 0 0 1244 0 4 0 43 0 0 0 0 0 0 012 0090 Fluid milk, unprocessed 0 0 0 0 0 0 0 0 4154 0 0 0 0 013 0100 Eggs in the shell 0 0 0 0 0 0 0 0 0 0 0 551 0 014 0110 Honey and beeswax 0 0 0 0 0 0 0 0 0 0 0 0 84 015 0130 Fresh fruit, excluding tropical 0 0 0 0 0 544 0 0 0 0 0 0 0 016 0141 Potatoes, fresh or chilled 0 0 0 0 675 0 0 0 0 0 0 0 0 017 0142 Other vegetables, fresh or chilled 865 0 0 0 0 596 704 0 0 0 0 0 0 018 0151 Hay and straw, excluding imputed feed 0 0 0 0 0 0 226 0 0 0 0 0 0 019 0152 Hay and straw, imputed feed 0 0 0 0 0 0 2143 0 0 0 0 0 0 020 0169 Seeds, excluding oil seeds 0 0 0 0 0 0 58 0 0 0 0 0 0 021 0170 Nursery stock, flowers, and other horticulture products 1749 0 0 0 0 0 0 0 0 0 0 0 0 022 0181 Canola 0 0 0 1257 0 0 0 0 0 0 0 0 0 023 0182 Soybeans and other oil seeds 0 0 0 593 0 0 0 0 0 0 0 0 0 0

94


2001 Input table, modified basic price (industries # 1 to # 142) preliminaryNAICSPublic aggregation level WCurrent dollars (in millions)National public table

IndustriesNo. 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


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 Description1 0010 Cattle and calves 0 0 0 0 0 0 0 0 29 1310 0 4 8 02 0030 Hogs 0 0 0 0 0 0 0 0 0 0 34 0 8 03 0040 Poultry 0 0 0 0 0 0 0 0 0 0 0 367 26 04 0059 Other live animals 0 0 0 0 0 0 0 0 0 0 0 0 0 05 0071 Wheat, unmilled, excluding imputed feed 1 31 45 49 26 27 18 0 0 0 0 0 0 06 0072 Wheat, unmilled, imputed feed 0 0 0 0 0 0 0 0 17 113 31 7 4 07 0081 Grain corn, excluding imputed feed 0 10 15 16 9 9 6 0 0 0 0 0 0 08 0082 Corn fodder, imputed feed 0 0 0 0 0 0 0 0 48 43 34 21 3 09 0083 Barley, excluding imputed feed 0 8 12 13 7 7 5 0 0 0 0 0 0 010 0084 Other grains, excluding imputed feed 0 3 4 4 2 2 2 0 0 0 0 0 0 011 0085 Other grains and fodder, imputed feed 0 0 0 0 0 0 0 0 229 693 250 94 26 012 0090 Fluid milk, unprocessed 0 0 0 0 0 0 0 0 0 0 0 0 0 013 0100 Eggs in the shell 0 0 0 0 0 0 0 0 0 1 0 0 0 014 0110 Honey and beeswax 0 0 0 0 0 0 0 0 0 0 0 0 0 015 0130 Fresh fruit, excluding tropical 0 0 0 0 0 0 0 0 0 0 0 0 0 016 0141 Potatoes, fresh or chilled 0 5 7 8 5 5 3 0 0 0 0 0 0 017 0142 Other vegetables, fresh or chilled 148 8 5 10 5 2 4 0 0 0 0 0 0 018 0151 Hay and straw, excluding imputed feed 0 0 0 0 0 0 0 0 1 1 0 0 0 019 0152 Hay and straw, imputed feed 0 0 0 0 0 0 0 0 455 1001 441 202 44 020 0169 Seeds, excluding oil seeds 36 3 3 3 2 1 1 0 0 0 0 0 0 021 0170 Nursery stock, flowers, and other horticulture products 0 0 0 0 0 0 0 0 0 0 0 0 0 0

95


2001 Final Demand table, modified basic price (preliminary)NAICSAggregation level WCurrent dollars (in millions)National public table

CategoriesNo. 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


Personal expenditures, food and non-alcoholic beverages

Personal expenditures, food (imputed)

Personal expenditures, alcoholic beverages bought in stores

Personal expenditures, tobacco products

Personal expenditures, men's and boy's clothing

Personal expenditures, men's and boy's clothing, repair and alterations

Personal expenditures, women's and children's clothing

Personal expenditures, women's clothing, repair and alterations

Personal expenditures, footwear

Personal expenditures, shoe repair

Personal expenditures, gross imputed rent

Personal expenditures, gross rent paid

No. Code Description1 0010 Cattle and calves 0 237 0 0 0 0 0 0 0 0 0 02 0030 Hogs 0 98 0 0 0 0 0 0 0 0 0 03 0040 Poultry 0 37 0 0 0 0 0 0 0 0 0 04 0059 Other live animals 0 3 0 0 0 0 0 0 0 0 0 05 0071 Wheat, unmilled, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 06 0072 Wheat, unmilled, imputed feed 0 0 0 0 0 0 0 0 0 0 0 07 0081 Grain corn, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 08 0082 Corn fodder, imputed feed 0 0 0 0 0 0 0 0 0 0 0 09 0083 Barley, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 010 0084 Other grains, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 011 0085 Other grains and fodder, imputed feed 0 0 0 0 0 0 0 0 0 0 0 012 0090 Fluid milk, unprocessed 0 9 0 0 0 0 0 0 0 0 0 013 0100 Eggs in the shell 296 2 0 0 0 0 0 0 0 0 0 014 0110 Honey and beeswax 56 3 0 0 0 0 0 0 0 0 0 015 0130 Fresh fruit, excluding tropical 1140 60 0 0 0 0 0 0 0 0 0 016 0141 Potatoes, fresh or chilled 233 13 0 0 0 0 0 0 0 0 0 017 0142 Other vegetables, fresh or chilled 1723 78 0 0 0 0 0 0 0 0 0 018 0151 Hay and straw, excluding imputed feed 0 0 0 0 0 0 0 0 0 0 0 019 0152 Hay and straw, imputed feed 0 0 0 0 0 0 0 0 0 0 0 020 0169 Seeds, excluding oil seeds 0 0 0 0 0 0 0 0 0 0 0 021 0170 Nursery stock, flowers, and other horticulture products 0 0 0 0 0 0 0 0 0 0 0 022 0181 Canola 0 0 0 0 0 0 0 0 0 0 0 0

Statistics Canada’s SPSD/M

The Social Policy Simulation Database and Model

97

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

98

Models based on I-O Tables

1. Output Models

a) The Open Modelb) Closed Modelsc) 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

99

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.

100

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.

04/19/23 101

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.

102

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.

103

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

104

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

105

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


Canada's natural resource exports by Philip Cross and Ziad Ghanemhttp://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

http://www.statcan.ca/english/research/11-621-MIE/11-621-MIE2005020.htm#Slide%203

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




I/O Framework Workshop Industry Accounts Division Statistics Canada Fabienne Leclerc & Ronald Rioux...

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