Methodology

A key component of this work is to estimate the social transfers in kind to households (STiK) from government and from non-profit institutions serving households (NPISH). The estimates are then added to household final consumption expenditure to get actual final consumption. It is useful to recall the definition of household actual final consumption, which can be summarize into the sum of:

  1. Household final consumption expenditure
  2. Social transfers in kind from government
  3. Social transfers in kind from NPISH

Social transfers in kind exist only for certain household expenditure categories and are outlined in the table below where the symbol “#” denotes the categories where STiK amounts are transferred to households from government and from NPISH.

Table 1
Household expenditure categories impacted by the addition of social transfers in kind
Table summary
Household expenditure categories impacted by the addition of social transfers in kind
Household expenditure classification HFCE STiK from government STiK from NPISH HAFC
Food and non-alcoholic beverages C11 - - C11
Alcoholic beverages, tobacco and cannabis C12 - - C12
Clothing and footwear C13 - - C13
Housing, water, electricity, gas and other fuels C14 # # C14 + STiK
Furnishings, household equipment and other goods and services related to the dwelling and property C15 - - C15
Health C16 # # C16 + STiK
Transport C17 - - C17
Communications C18 - - C18
Recreation and culture C19 # # C19 + STiK
Education C21 # # C21 + STiK
Food, beverage and accommodation services C22 - - C22
Insurance and financial services C23 - - C23
Miscellaneous goods and services (including Social protection) C24 # # C24 + STiK
Net expenditure abroad C25 - - C25
Other services - - # STiK (=C26)

The last category in the table above, “Other services”, includes services related to religion, political parties, labour and professional organizations, environmental protection, and services not elsewhere classified. This category was not part of the household final consumption expenditure and is therefore a new category under HAFC (C26). The naming of “Other services” is aligned with the UN-approved COPNI classification. Since STiK is applicable to housing (C14), health (C16), recreation and culture (C19), education (C21), social protection (a sub-component of C24), those series will have an actual consumption that is different from final consumption expenditure.

The following sections will present the methodology used to derive the estimates for social transfers in kind.

Estimating social transfers in kind from general government
Estimating social transfers in kind from non-profit institutions serving households
Reconciliation and data confrontation
Social transfers in kind to non-residents
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