Diapositiva 1

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Estimating buildings, other structures and land
in the perspective of compiling balance sheets by
institutional sector

• Giuseppe Cinquegrana
• Researcher
• National Accounts directorate
• Istat

OECD Working Party - Paris, 15 October 2008
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• Assets (ESA1995)
• Buildings
• Dwellings (AN1111)
• Non-residential buildings (AN11121)
• Other structures (AN11122)
• Machinery and equipment (AN1113)
• Land (AN211)
• Underlying buildings and structures
  (AN2111)
• Underlying under cultivation
  (AN2112)
• Consumer durables

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• Dwellings
• Dwellings (AN1111) (DW)
• Gross Fixed Capital Formation series
  in DW (GFCF DW)
• net of the value of the underlying land
• Perpetual Inventory Method (P.I.M.)
• Gross Fixed Capital Stock in DW (GFCS
  DW)

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New methodology to estimate the stock of
Dwellings Main
sources ISTAT 14th Population and Dwellings
Census, 2001 OMI Observatory of the Real
Estate Market CRESME Centre for Social
and Economic Research on Construction and
Territory
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• New methodology to estimate
• the Stock of Dwellings
• Years 2005-2006
• Stock of Dwellings
• DW x AS x PRICE (per m2)
• DW number of Dwellings
• AS Average Surface (m2)
• market price
• it includes the value of the
• land underlying dwellings

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• Number of dwellings DW
• DW t DW t-1 NC t
• DW t-1 number of dwellings for year t-1
• NC t number of new dwellings for year t
  (CRESME).
• Starting point
• DW 2001
• source 14th Population and Dwellings Census
  ISTAT, 2001

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• AVERAGE SURFACE (m2)
• total gross surfaces (or commercial surfaces )
  (m2) of dwellings by region
• (source OMI, year 2005-2006)
• It includes
• The inside surface of the rooms,
• the homogenised surface of the accessory areas

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• PRICE per m2
• the purchase price of a building per m2 in the
  relevant period by region
• (source OMI, year 2005-2006)
• It includes the cost of construction, the profit
  margin and the value of land underlying
  dwellings.

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• Stock value of dwellings and accessory areas,
  Italy. Years 2005-2006

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• Value of land underlying the dwellings

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• Value of Dwellings by institutional sector
• OMI statistics provide
• The shares of the total surface of dwellings
  owned by PP (individuals) and NPP (others).
• PP are assigned to S14

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• Value of Dwellings by institutional sector
• The stock of dwellings for S12 has been estimated
  from balance sheets data and has been detracted
  from NPP
• The remaining stock of NPP has been assigned to
  S11. No dwellings have been assigned to the
  market producers in S14 ( very small enterprises)
• Data do not include dwellings owned by General
  Government, which are estimated independently, by
  P.I.M., within the framework of GG accounts

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• Value of Dwellings by institutional sector

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Value of Non-residential buildings by
institutional sector
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• Other structures by institutional sector
• starting from GFCF series
• (valued net of the value of underlying land)
• Stock in Other Structures (OS) estimated by
  P.I.M for
• General Government (S13)
• Non-financial Corporations (S11).

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Value of Other structures by institutional
sector
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• Land under cultivation (AN2112)
• Main sources
• ISTAT
• Census of agricultural holdings, year 2000
  (CAH 2000).
• Structure and productions of the agricultural
  enterprises (SPA), years 2005-2003,
• INEA
• National Institute of Agricultural
  Economics
• Survey on the land market 2006

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• Land under cultivation (AN2112)
• Years 2003-2006
• Methodology
• Value of the land under cultivation
• UAA in ha X market price per ha
• UAA utilized agricultural area
• market prices by region (Source INEA)

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• Land under cultivation (AN2112)
• utilized agricultural area (UAA)
• arable land
• permanent meadow and pasture
• land under permanent crops.
• total agricultural area (TAA)
• it is given by the UAA plus
• wooded area
• other land.

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Value of Land under cultivation (AN2112)
UAA
PRICES
VALUE AN2112 a
b
a X b (HECTARES)
(EUROS PER HECTARE) (MILLIONS EUROS)
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Utilized Agricultural Area by legal form of the
owner.
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Value of Land under cultivation (AN2112) by
institutional sector Millions euros.
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• Consumer durables
• Application of P.I.M. to estimate consumer
  durables stock
• (accumulating past purchase of assets over
  their service life)
• Necessary elements to apply P.I.M.
• retirement model (truncated bell-shaped model)
• depreciation function (straight-line
  depreciation)
• average service life

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(No Transcript)
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• Results
• 1990-2007 time series of gross and net
  stock, retirements and consumption of the stock
  at current replacement cost and as chain-linked
  values (reference year 2000)
• Gross stock of consumer durables (current
  replacement costs). Millions euros

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Gross stock of consumer durables (chained-linked
values). Millions euros