Household Production and Consumption in Finland 2001

Summary
The Household Satellite Account aims to make visible the non-market
production of households, which is only partially covered in the National
Accounts. All economic analyses depend on systematic data compiled in a given,
structured format. However, no such data have been available for household
production, so far. The purpose of the satellite account is to fill this gap.
The Household Satellite Account measures and describes the value of the
goods and services produced by households for their own final consumption. The
main part of household production is outside the scope of GDP. Satellite Account
is conceptually consistent with the core national accounts, and it enables to
produce extended national accounts that include both core accounts and
household production. Such extended national accounts give a somewhat
different picture of economic development than the core national accounts. They
are of particular interest in the analysis of long-term economic development or in
the comparison of levels of production in different economies.
The Finnish Household Satellite Account has been compiled in compliance
with Eurostat and SNA93 guidelines. Some effort has also been made to
further develop the Eurostat method. Accounts have been compiled for ten
different types of households and for different principal functions of household
production, i.e. providing housing, meals and snacks, clothing, care, and
volunteer work. Also shopping and travel related to unpaid work are shown
separately. The Finnish Household Satellite Account describes household
production in 2001.
Production not included in the national accounts is valued by using the input
method. The data sources used in compiling the account were Statistics Finland’s
Time Use Survey in 1999–2000, the 2001–2002 Household Budget Survey, wage
and salary statistics as well as National Accounts figures for 2001.
The total output value of household production in 2001 was 81.6 billion
euros. Gross value added in household production was 62.8 billion euros, of
which 13 per cent was included in the national accounts. The GDP is
increased by 40 per cent and household consumption by almost 60 per cent
when production excluded from the national accounts are included in the
figures. Among the various principal functions of household production, the
highest gross value added figure was recorded for housing. Its share was 43 per
cent of all household production. Meals and snacks accounted 27 per cent of
household production.
The volume of output varied in different types of households. Output was
highest in families with small children and lowest in young single-person
households. Output increased markedly with the age of the household’s
reference person, both among people living alone and couples. Household
structure and the age of household members had a greater impact on output
than gross household income.
Extended national accounts time series will provide a valuable tool for
monitoring changes in economic development. In the future the aim is to
compile household satellite accounts on a regular basis at a five-year interval or
more often using data from the national accounts, the Household Budget
Survey and the Time Use Survey.
10 Statistics Finland National Consumer Research Centre