Ilja Kristian Kavonius

European Central Bank · Directorate General Statistics

We extend the integrated national accounts for individual euro area countries by calculating the transaction links between sectors. We perform this for the nonfinancial and financial parts of the accounts and create a generic system that integrates this information. The resulting framework provides a useful platform for static policy simulations an...

Measurement of economy and material welfare

Artikkeli tarkastelee rahoitusvarallisuuden merkitystä funktionaalisen tulonjaon muodostuksessa ja sitä, miten tämä välittyy kotitalouksien väliseen tulonjakoon. Thomas Pikettyn käsitys on, että maailmansotien jälkeen olemme eläneet poikkeuksellisen alhaisten tuloerojen aikaa, mutta rahoitusvarallisuuden kasvun myötä olemme nyt siirtymässä takaisin...

The financial accounts of the household sector within the system of national accounts report the aggregate asset holdings and liabilities of all households within a country. In principle, when household wealth surveys are explicitly designed to be representative of all households, aggregating these microdata should correspond to the macro-aggregate...

In this article, the link between financial wealth and pre-tax household income distribution is scrutinised for three European countries using a conceptually fully consistent macro framework. First, national balance sheets are combined with the related income flows. After this, income flows that are not property income but that are considered part...

Globalisation has a major impact on the levels and distribution of wealth. The financial markets are highly integrated, and valuations of financial assets follow international patterns, which has contributed to large increases in financial wealth over the past 25 years. Nonetheless, this has not led to an equally large increase in property income b...

In past years, there have been several projects to include distributional aspects in the national accounts' framework. Household distributional information will also be covered in the forthcoming version of the System of National Accounts. Additionally, increasing emphasis has been put on covering all material aspects of welfare in the same framewo...

The last few decades have been accompanied by disruptive changes to the structure of employment which have led to deterioration in demand for middle-skill occupations, a process known as job polarisation. As the demand for middle-skill workers shrinks, expectations about households’ income through their lifetime horizon are adjusted. It is unclear...

We introduce a central bank digital currency (CBDC) in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the central bank, we model the different responses of the affected institutional sectors. We find that the introduction of CBDC generates funding shorta...

Globalisation has a major impact on the levels and distribution of wealth. The financial markets are highly integrated and valuations of financial assets follow international patterns, which has resulted partially large increases in financial wealth over the past 25 years. This has not led to an equally large increase in property income because the...

in Kansantaloudellinen aikakauskirja: https://www.taloustieteellinenyhdistys.fi/wp-content/uploads/2020/12/KAK_4_2020_WEB-49-75.pdf

We introduce a digital currency, either as a central bank digital currency (CBDC) or a financial crypto asset (stablecoin), in the network of financial accounts. Simulating a shift of deposits by both households and non-financial corporations from the banking sector to the digital currency, we model the different responses of the affected instituti...

This article focuses on analysing the role of financial wealth in the generation of income and how it is reflected in the income distribution between households. Piketty believes that we are living in an era of exceptionally narrow income distribution and that due to the increase of financial as well as inherited property; we are entering an era of...

The financial accounts of the household sector within the system of national accounts report the aggregate asset holdings and liabilities of all households within a country. In principle, when household wealth surveys are explicitly designed to be representative of all households, aggregating these micro data should correspond to the macro aggregat...

Currently, there are several international initiatives in linking micro and macro household balance sheet, income and consumption data. Thus far, the focus has been on creating distributional accounts for a single point in time. However, the real value added of such accounts for the central bank analysts' toolkits would be either to provide more ti...

Since 2008, when the U.S. subprime mortgage crisis triggered the financial crisis, financial stability analysis has been increasingly interested in the leverage and indebtedness of households along with the vulnerability of different household groups. The reason for this interest is that the household balance sheet and thus, also their risks, are t...

Mikro- ja makroaineistojen välinen yhteys ja sen käyttäminen taloudellisessa analyysissä on herättänyt viime vuosien aikana lisääntyvissä määrin kiinnostusta. Syy tähän sekä rahapolitiikassa että rahoitusmarkkinoiden vakauden politiikassa on kasvava tarve yhä hienojakoisemmalle tiedolle. Toisaalta taustalla on ollut lisääntyvä tarve kotitalouksien...

Since 2008, when the U.S. subprime mortgage crisis triggered the financial crisis, financial stability analysis has been increasingly interested in the leverage and indebtedness of households along with the vulnerability of different household groups. The reason for this interest is that the household balance sheet and thus, also their risks, are t...

The report on the Measurement of Economic Performance and Social Progress by Stiglitz, Sen and Fitoussi concludes that, in the measurement of household welfare, all material components should be covered, i.e. consumption, income and wealth, from both the micro as well as the macro perspective. Additionally, several other initiatives like the G20 fi...

The report on the Measurement of Economic Performance and Social Progress by Stiglitz, Sen and Fitoussi concludes that, in the measurement of household welfare, all material components should be covered, i.e. consumption, income and wealth, from both the micro as well as the macro perspective. Additionally, several other initiatives like the G20 fi...

Recent interest in macroprudential analysis has highlighted the need for models that can identify counterparty risk exposures and shock transmission channels at the systemic level. We use data from the euro area financial accounts (flow of funds) to construct a sector-level network of bilateral balance sheet exposures. We then use the contingent cl...

This paper examines the linkages between household wealth surveys and National Accounts’ household balance sheets, in particular the conceptual linkages between two ECB statistics: the household sector of the integrated Euro Area Accounts (EAA) and the balance sheet variables of the forthcoming euro area Household Finance and Consumption Survey (HF...

The purpose of this article is to analyse the possibilities of Finnish households saving and their consumption patterns in the beginning of the 1950s. As a tool for this analysis, the article estimates unbalanced sector accounts and private consumption for 1950s Finnish households. These accounts allow analysing the structure of the Finnish househo...

The purpose of this article is to estimate the impact of capitalizing durable goods on the euro area household saving ratios and disposable incomes for the first time. The reason for this exercise is twofold. Firstly, it is generally accepted that individual households regard consumer durables as assets even though they are not treated as such in t...

This article discusses the effect of holding gains and employee stock options (ESO) on the measured household saving ratio and on disposable income. The income concept of the SNA 93 does not include realized holding gains, but taxes paid on such gains are nevertheless deducted from income. In contrast to many other OECD countries, Finland records E...

The purpose of this paper is to estimate the impact of capitalising durable goods on the Euro area (EA) countries? and the EA-aggregate?s household saving ratios and disposable incomes. The reason for this exercise is twofold. Firstly, it is generally accepted that individual households regard consumer durables as assets even though they are not tr...

This paper is posted on the following websites: http://www.iariw.org http://www.econ.nyu.edu/iariw

This article compares the data on wages and salaries, entrepreneurial income and property income obtained from Statistics Finland Income Distribution Survey 2000 with those on primary income from National Accounts. The international community of statisticians has in the past years been interested in this kind of analysis for twofold reasons. Firstl...