Content uploaded by Ilja Kristian Kavonius
Author content
All content in this area was uploaded by Ilja Kristian Kavonius
Content may be subject to copyright.
Household Income Aggregates in Micro and Macro Statistics
Abstract
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. Firstly disaggregation or the linkage between micro and macro is an example of quality assessment by confronting alternate data sources. Secondly this kind of linkage increases policy relevance of National Accounts information. Discrepancies due to differences in population coverage and definitions between the two statistics have been analysed in the article. Most of the discrepancies can be explained by these differences and only a quite marginal amount of the discrepancies are caused by measurement and sampling errors.
... The most common procedure when selecting which variable to use is to turn to those variables that represent an individual's income or expenditure. Both income and expenditure demonstrate advantages and disadvantages in measuring poverty [19]. Gross National Product (GNP) and household incomes are initially calculated in national currencies and then converted by purchasing power parities (PPPs) which take account of different price levels between [20]. ...
This article describes a new idea of how the level of intervention in household empowerment policies is based on an empirical study of the magnitude of the negative impact of the smallholder palm oil replanting (SPR) program. One of the negative impacts of this program is the temporary loss of income (TLI) for farmer households due to the cessation of production of oil palm fruit bunches. The household survey research was conducted in three village centers for smallholder oil palm plantations in Jambi Province, Indonesia. The research result shows that the average potential TLI in each household if replanting palm oil is carried out is IDR 2,364,644/ month (equivalent to 74.55% of the oil palm household income or 39.78% of the regional economy), Purwodadi Village is the village most vulnerable to regional economic disturbances due to the high potential for TLI, reaching 99.43% of the oil palm household income and 67.06% of the regional economy. The level of TLI is influenced by factors of age and area of old oil palm plants, the proportion of households that will undergo the replanting process, and the level of dependence of regions on oil palm. The high investment in the oil palm replanting process and the fear of losing income are thought to be factors causing households to delay replanting oil palm plantations that have reached unproductive age. Based on the results of the research, it can be concluded that there is still a need for innovation and expansion of empowerment to encourage household readiness in facing the SPR program.
... The most common procedure when selecting which variable to use is to turn to those variables that represent an individual's income or expenditure. Both income and expenditure demonstrate advantages and disadvantages in measuring poverty [19]. Gross National Product (GNP) and household incomes are initially calculated in national currencies and then converted by purchasing power parities (PPPs) which take account of different price levels between [20]. ...
This article describes a new idea of how the level of intervention in household empowerment policies is based on an empirical study of the magnitude of the negative impact of the smallholder palm oil replanting (SPR) program. One of the negative impacts of this program is the temporary loss of income (TLI) for farmer households due to the cessation of production of oil palm fruit bunches. The household survey research was conducted in three village centers for smallholder oil palm plantations in Jambi Province, Indonesia. The research result shows that the average potential TLI in each household if replanting palm oil is carried out is IDR 2,364,644/ month (equivalent to 74.55% of the oil palm household income or 39.78% of the regional economy), Purwodadi Village is the village most vulnerable to regional economic disturbances due to the high potential for TLI, reaching 99.43% of the oil palm household income and 67.06% of the regional economy. The level of TLI is influenced by factors of age and area of old oil palm plants, the proportion of households that will undergo the replanting process, and the level of dependence of regions on oil palm. Based on the results of the research, it can be concluded that there is still a need for innovation and expansion of empowerment to encourage household readiness in facing the SPR program.
... Due to data availability, the linking has also some other differences. In this analysis, all the income flows are included in the breakdown presented on the left-hand side The linkage is in principle consistent with the linkage applied in Kavonius and Törmälehto (2003) but due to the updated reporting details and the insurance and pension related items in the HFCS data applied in this article, the level of data aggregation slightly differs. Table (4.) ...
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 rates of return have decreased during the same era. Moreover, changes in the functional income distribution (capital/labour shares) have not been transmitted fully to the distribution of primary income between households, because other institutional sectors – particularly, the government sector – hold considerable amounts of financial assets. At least in the short term, the decrease in rates of return seem to contradict claims that due to increase of financial as well as inherited wealth, we are entering into an era of increasing income inequality.
In this paper, the link between financial wealth and pre-tax household income distribution is scrutinised in a conceptually fully consistent macro framework for three European countries. First, the national balance sheets are combined with the related income flows. After this, the income flows which are not property income but belong to the national income concepts (e.g. wages and salaries) are added, the national income flows are broken down by the institutional sectors and the household sector income flows separated. Finally, distributional household micro data are used to break down the aggregate household sector income flows by income deciles. By using this framework, this paper analyses evolvement of rates of return, capital and labour shares as well as how the property income flows created by the financial wealth, have affected household primary income distribution.
... Laitoskotitalouksilla viitataan kotitalouksiin, jotka ovat pysyvästi tai pidempiä aikoja laitoksissa kuten esimerkiksi sairaaloissa tai vankiloissa. Tarkemmin kansantalouden tilinpidon ja tulonjakotilaston kattavuuseroista (Kavonius ja Törmälehto 2003). ...
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 suurten pitkälti omistuksesta syntyviin tuloihin perustuviin tuloeroihin. Hän tarkastelee tätä kehitystä mallilla, johon on yhdistetty talouskasvu, funktionaalinen tulonjako ja kotitalouksien välinen tulonjako. Tässä artikkelissa tarkastellaan samaa ilmiötä käsitteellisesti yhtenäisellä mallilla, jossa koko kansantalouden rahoitustaseet on yhdistetty niihin liittyviin tulovirtoihin. Tämän jälkeen tulovirrat on täydennetty kansantulon käsitteestä puuttuvilla tulovirroilla. Lopuksi kansantulosta on erotettu tulovirrat, jotka kuuluvat kotitalouksille ja nämä on taas yhdistetty tulonjakotilaston tulokymmenyksittäiseen aineistoon. Tämän
mallin avulla on analysoitu, kuinka rahoitusinstrumenttien synnyttämien pääomatulojen kehitys vuosina 1995–2016 on vaikuttanut kotitalouksien väliseen tulonjakoon. Analyysin loppupäätelmät ovat, että vaikka kotitalouksien rahoitusvarallisuus on miltei kaksinkertaistunut suhteessa ansiotasoon, rahoitusvarallisuuden tuottoprosentit ovat samalla puoliintuneet. Lisäksi kun otetaan huomioon, että suuri osa kansantalouden omaisuustuloista päätyy muille sektoreille kuin kotitalouksille, eri kotitalouskymmenyksien funktionaalinen tulonjako eli kotitalouksien ensitulojen jakautuminen ennen tulojen uudelleenjakoa ei ole viimeisen kahdenkymmenen vuoden aikana merkittävästi muuttunut
... The EAA describes household sector, and essentially has no need to pay attention to how individuals cluster together or to variation of values among household beyond what is needed to estimate total sums for all households in the euro area. 34 Kavonius & Törmälehto (2003) examined incomes of institutionalised population in Finland and found out that they received fairly small but non-negligible amounts of capital income (mainly rental income), which is indirect evidence of their asset holdings. ...
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 (HFCS).
Although the wealth survey data are not yet available, the conceptual linkage is worth examining for various reasons. The conventional motivation for comparisons of wealth survey estimates to balance sheet counterparts is assessment of quality of the survey estimates. At the moment there is an increasing interest of breaking down National Accounts and have distributional information (Stiglitz, Sen & Fitoussi, 2009; IMF/FSB, 2009). Additionally, the current financial crisis even has emphasised the need for micro and macro linkages as it can be possibly used for instance in the analysis of transmission of macro economic shocks and risks.
This paper may be seen as the very first step towards building and investigating a link between these two data sets. This paper finds, however, that there are many complications of building this kind of linkage. Several of these complications are related to different viewpoints of the two statistics.
... Roemer also points out the problems underlying income distributions based on administrative data (e.g., because illegal work and related income are not captured in the administrative data). Kavonius and Törmälehto (2003) compare income aggregates of various sources from survey data (e.g. Income Distribution Survey) with national accounts data for Finland. ...
This article compares the results of Austria’s Household Finance and Consumption Survey (HFCS) on savings deposits and estimates on total financial assets with administrative records from the national accounts for the household sector. The microdata that are newly generated through the HFCS and the detailed (internally available) breakdown of savings deposits in the existing macrodata (financial accounts) lend themselves to a more in-depth analysis of the similarities and differences in these two sources. Comparing the data shows that the HFCSbased aggregate estimates are lower than the financial accounts data, which is in line with evidence from the literature. The article also shows, however, that the survey adequately captures the underlying patterns at the microlevel in terms of the overall financial portfolio allocation and the distribution of savings deposits over detailed breakdowns. Moreover, a simulation based on the HFCS data demonstrates the effect that the inclusion of savings deposits in the most affluent tail of the distribution has on common statistics. Undercoverage above all of the upper deposit ranges suggests an underestimation or bias in the statistics. This underestimation, however, can be shown to be relatively minor, particularly in the case of robust statistical measures, such as the median or percentile ratios.
... Using income totals in calibration in Finland ensures that any discrepancy is not due to sampling error but must be due to either conceptual differences or measurement problems with the variable in itself, and this only concerns a very small amount of non-register based incomes such as inter-household transfers. Consequently, the coherence of the Finnish survey with National Accounts is very good (Kavonius & Törmälehto, 2003). ...
The combined use of statistical survey and administ rative data is largely widespread to maximize their respective usefulness: unfortunately data sources are often hard to integrate due to errors or lacking informat ion. Record linkage techniques are a multidisciplinary set of methods and practices aimi ng to identify the same real world entity, differently represented in data sources. Re cord linkage is a complex process but it can be decomposed in separate phases, each of them requiring a specific technique. To deal with such a complexity, we propose RELAIS (REcord Linkage At IStat), an open source toolkit based on the idea of choosing the mo st appropriate technique for each phase and of dynamically combining them so as to build a record linkage workflow , given specific application constraints and input da ta features.
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 households' income and the structure of household consumption. As these accounts are estimated for the whole country and in addition for three different categories of municipalities, they allow an analysis of welfare differences between different regions. This article is not limited to the macro analysis. Based on the individual replies of the cost living studies, some households are analysed in more depth to get a broader view on their way of living. The analysis of individual household replies is also based on the sector accounts, i.e. accounts similar to those on the aggregated level are estimated for individual households.
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 ESO in the changes in assets following the same accounting convention as for holding gains. The article presents three income concepts and it analyses in the case of each the effect of holding gains, ESO and their taxes on disposable income and the saving rate. The first income concept is that of the Finnish national accounts. The second includes holding gains and ESO, as well as their taxes, as expenditure, whereas the third income concept excludes holding gains, ESO and their taxes.
ResearchGate has not been able to resolve any references for this publication.