Household Production Accounting Theory And Methods

SNA2008 divides the whole economy into non-financial corporations sector, financial corporations sector, government sector, households sector and non-profit institutions serving households sector. As an important part of the overall national economy, the households sector not only plays the role of consumers, also plays the role of production during the national economy. The production of the households sector occupies an important position in the national economy production.SNA2008 defines the economic production as activities to use labor, capital, goods and services to produce goods and services under the control and responsibility of institutional unit. In theory, any activity meeting the definition of economic production should be incorporated into the scope of national economic production accounting. But under the current national economy accounting system, due to many reasons, the households sector's economic production is not fully integrated into the scope of national production accounting with a considerable part of production (such as household unpaid services production) is excluded from the scope and not reflected in the GDP. Especially in the countries like China with lower level of economic development, marketing and great gaps between the urban and rural regions, household members devote more time to household production than market economic productivities. If these economic production economies are not accounted, it will largely underestimate the importance of household production in the whole national economic activities, not truly and accurately reflect the results of households sector during the accounting period.Based on relevant theories and methods in SNA2008, combined with China's national conditions, this paper researches the theory and method of China's household production accounting. The paper consists of nine chapters:Chapterâ… describes the background and significance of this paper and introduces the research direction and results of domestic and foreign institutions and scholars in the field. Chapterâ…¡defines the scope and principles of household production accounting. This chapter defines the body, scope and the economic transactions between the household sector and other institutional sectors during different stages, and elaborately describes the basic principles and theoretical basis of household production accounting. Chapterâ…¢classifies household production accounting data, designs multi-stage stratified sampling method suitable for household production accounting data collecting which is based on traditional sampling methods and finally according to relevant theories and methods about data processing, groups the accounting data and designs analysis tables and charts.Chapterâ…£designs the basic methods of household production accounting according to relevant theory and methods about accounting account, matrix and quantitative analysis. It constructs simple account, integrated economic account, production accounting matrix, input-output matrix for household production accounting, and explores possible quantitative analysis models.Chapterâ…¤discusses how to account the production of agricultural households. It defines production scope of agricultural households, designs total index and relative index to reflect agricultural households'production, constructs corresponding production account, integrated production accounting matrix, input-output matrix of agricultural production, and analyses quantitatively agricultural input and output efficiency and its dominant factors.Chapterâ…¥discusses how to account production of non-agricultural household. It defines the production scope of non-agricultural household, designs total indexes and relative indexes to reflect non-agricultural household production, constructs production account, integrated production accounting matrix, analyses the production level difference of private enterprises in the east, central and west regions.Chapterâ…¦discusses how to account household free services. It defines the body and scope of household free services, proposes output method and input method for accounting household free services, designs three methods to calculate the time value denoted to the household free services production, constructs its input-output matrix according its own characteristics, and finally quantitatively analyses the imbalance of household free service production.Chapterâ…§constructs the production account of the whole household sector, then defines the economic transactions between households sector and other institutional sectors and forms production account, income account, the use of income account, the capital account and the financial account, finally constructs integrated economic account of China's household sector.Chapterâ…¨analyses the logic links between household production accounting and SNA. It analyses the intrinsic link between the scope of household production accounting and the scope of SNA. The scope of household production accounting includes both household SNA production and household non-SNA production. This chapter then analyses the links between the household production account and SNA production account, finally analyses the logic links between household production account system and SNA account system.This paper will contribute to the formation of China's household sector production accounting system, and it will also help government and relevant agencies to comprehensively understand household sector's production, income, consumption activities during the whole national economy; also complement the existing SNA2008 system and enrich the household sector production accounting theory. Therefore, this research has important theoretical and practical significance.