Appendix F Methodology

This appendix describes the methodology used in creating the Provincial and Territorial Culture Satellite Account (PTCSA). The first step in developing the PTCSA is the conceptual exercise of defining culture. The next step involves applying this definition to standard classification system used by Statistics Canada to compile and present economic data. These classification systems are the North American Industry Classification System (NAICS 2007) and the North American Product Classification System (NAPCS 2007). The mapping of the culture domains and sub-domains to the NAICS and NAPCS is taken directly from the 2011 CFCS and is the foundation of the PTCSA. The end result of this exercise is a list of NAICS based industries and NAPCS based products that represent culture and sport.

The Input-Output tables by province and territory, as well as at national level are the building blocks of the PTCSA. Two of the important dimensions contained in these tables are an industry dimension and a commodity dimension. However, the commodity (IOIC) and industry (IOCC) classifications used in the I-O tables are too aggregated to be directly incorporated in the PTCSA. For example, Table F.1 shows the NAICS industries associated with the IOIC industry performing arts, spectator sport and related industries, and heritage institutions. This I-O industry is composed of twenty three different six-digit NAICS.

Methodology used to compile culture industry estimates

Since the IOIC industries used are often too broadly defined and include non-culture industries a major step in building the PTCSA is to disaggregate the IOIC based industries into their underlying six-digit NAICS 2007 industries.

The disaggregation or “splitting” process makes use of survey and administrative data collected at the detailed industry level. This data is first processed to be consistent with the definitions and accounting rules used to create the I-O tables.

Revenue information from different sources is used to derive “split factors” to split IOIC industries into relevant culture industries. A split factor, see equation below, is the share of a specific industries output relative to the total of all industries in the group.

$$\frac{output of NAICS 711111}{total output of NAICS \left(711+712\right)},$$

Table F.2 is an example of how the split factors would be derived for the culture industry related to the Performing arts, spectator sport and related industries, and heritage institutions in the PTCSA. The first step would be to derive a value of output for all the culture industries within the IOIC – Performing arts, spectator sport and related industries using detailed survey or administrative data. The second step would be to derive a split factor for each industry which represents the output of the industry as a share of the total output of all the industries in BS71A000 - Performing arts, spectator sport and related industries, and heritage institutions.

The next step would be to then apply these split factors to the output, GDP and jobs of the industry BS71A000 - Performing arts, spectator sport and related industries, and heritage institutions.

Methodology used to compile culture products estimates

The process to estimate culture products is similar to the process used to estimate culture industries in that the aggregate IOCC information needs to be disaggregated into detailed NAPCS classes.

Table F.3 provides an example of the IOCC product MPS71A002 - Admissions to performing arts. This product is equivalent to NAPCS 711012 Admissions to live performing arts performances which is composed of seven detailed NAPCS products.

Methodology for compiling culture domain and sub-domain estimates

Once values of output, GDP and jobs have been calculated for each culture industry and culture product, it is possible to present the data by the culture domains and sub-domains outlined in the CFCS.

The methodology for creating the domain estimates is best illustrated using an example. Consider Table F.4 for an example of how estimates for the culture domain: Written and Published Works and sub-domains books and periodicals are compiled.

The first step is an allocation of the industry data to the domains. In the example below, data for the Book Publishing industry are allocated to the Book sub-domain and data for the Periodical Publishing industry are allocated to the Periodical Domain. The next step is to examine the products produced by each of these industries. In the case of the Periodical Publishing industry they produce $100 worth of Books (8% of total output). Since this is less than 10% of the industries total output the production of books in the Periodical Publishing Industry is moved from the Periodicals domain and to the book domain^{Note 1}. What remains is a value of output of $1200 in the Periodicals sub-domain and a value of $1500 in the Books sub-domain.

Notes