e-Frame European Framework for Measuring Progress

WP3 National accounts

Participants:OECD, UNIVPM, UNIPI
Starting time:January 2012
Objectives: The overall objective is to deliver a comprehensive, logical and methodologically based proposal for new national accounts required by the need to highlight the social, environmental and quality of life significations of the economic outcomes. This implies:
• to identify and systematize the gaps between the current national accounts system signification and the need for it to express the qualitative side of macroeconomic growth; the same objective stands for macroeconomic indicators;
• to elaborate macroeconomic indicators alternative to the GDP and associated current macroeconomic indicators. This will include the suggestions from the Europe 2020 Strategy;
• to elaborate and deliver a logical and methodological scheme (algorithm) to „discover” the sufficient and necessary attributes of national accounts which could answer the questions identified by the Stiglitz-Sen-Fitoussi Report;
• to identify new national accounts necessary for a comprehensive and public understanding of the qualitative issues of quantitative economic growth.
Description of work: The main specific tasks within WP3 aimed at achieving the objectives are the followings:

Task 1: New national accounts architecture (CFMR)
The work will start with a critical assessment of the system of current macroeconomic accounts used at the national level and by EU statistics in order to identify the new required national accounts in order to answer the questions of Stiglitz Report recommendations, as well as the European Commission Communication. On this basis it will be possible to define the general framework of a new architecture of the national accounts system. UNIPI will contribute to bring the “household perspective” (recommendation 2) in National Accounts, thus enhancing the use of household budget microdata in the estimate of GDP. This research theme is strictly linked to the one of “household and distributional level of income instead of production”

Task 2: Alternatives to GDP (UNIVPM)
The second task will deliver an analysis of possible alternative measures to GDP, in order to identify new macroeconomic indicators with qualitative attributes, including, among others, the suggestions derived from the Stiglitz Report. Furthermore it will be investigated the correlation of the new macroeconomic indicators as alternatives to GDP with the structure of the new national accounts and with their use in EU policies such as Europe 2020, macroeconomic surveillance and cohesion policies.

Task 3: Workshop on New National Accounts architecture (CFMR)
A workshop will be built with the aim of simulating the working framework of the new proposed national accounts architecture, in order to establish its reliability and practicability. The workshop will also focus on research subjects for future FP8 and ESSnet which will address the issues of the new architecture of the national accounts system and will discuss current policy use of macroeconomic surveillance.
    D3.1: The new alternatives to the GDP and associated current macroeconomic indicators (April 2013)
    D3.2: Workshop on a new architecture of the national accounts system (November 2013)