Cort
2 Miscellaneous companies expenditure
3
(a) Administrative expenditure abroad of domestic
airline and shipping companies
(b) Administrative expenditure abroad of domestic
insurance companies
(c) Administrative expenditure abroad of other
domestic companies
(d) Miscellaneous expenditure abroad of resident
companies
Film rental
4 Communications
(a) Telephone
(b) Telegraph and radio
5 Banking commission
6 Agency fees
Export
2 Miscellaneous companies expenditure
(a) Local administrative expenditure of foreign
shipping and airline companies
(b) Local administrative expenditure of foreign
insurance companies
(c) Local administrative expenditure of other
foreign companies
(d) Miscellaneous receipts from abroad by res-
ident companies
3 Film rentals
4 Communications
(a) Telephone
(b) Telegraph and radio
5 Banking commission
6 Agency fees
AT CONSTANT MARKET PRICES
ол that
120 The accuracy of constant price estimates depends on the quality of the current price estimates and of the methods of deflation used. The paragraphs following point out the limitations and evaluate the general reliability of the methods of deflation used.
121 In general a constant price estimate is most reliable if it is possible to revalue the quantity data at base year prices. Where this is not possible, a price index is normally used as a deflator. Where an aggregate has to be deflated, it is preferable to deflate the components separately by the corresponding price indexes rather than deflate the aggregate with an overall index. A drawback to unit price indexes is that it is difficult to allow for quality changes. Where no suitable index exists, it is necessary either to construct one or to use one already in existence that has some bearing on the data to be deflated or to impute on the basis of some correlative series. On the whole, many of the deflators`used in the present set of estimates are far from ideal mainly because they were not originally designed for the purpose to which they have been put.
122 Government consumption expenditure. All the deflators used were compiled specifically from government records related directly to the purposes to which they have been put. Consequently, the constant price estimates for these items are on the whole fairly reliable.
123 Capital formation. With the exception of land, the deflators used were designed originally for other purposes. Expenditure on buildings and construction has been dellated by a cost index taking into consideration labour and material inputs only; also it is likely that the input composition of different types of building and construction would vary, so that ideally, more than one deflator would be required. The aggregate estimates of plant, machinery and equipment, whether imported or locally produced, have been deflated by a unit value index of imported capital goods covering the entire range of imported capital goods.
124 Increase in stocks. As the detailed composition of stocks were unknown, the deflater was constructed based on unit value indexes of imports of raw material (representing raw materials and supplies) and domestic exports (representing finished goods on hand for sale). The deflator was therefore in error to the extent of the incorrectness in the weights adopted and the extent of how changes in the component indexes were different from the price movement of the actual or imputed stocks transactions. Hence there is likely to be a further addition to the wide margin of error which the current price estimates of stocks are subject to.
125 Exports and imports of goods and services. The merchandise components have been deflated by indexes of unit values. Exports and imports of services were mostly re-valued at base year prices,
25
No comments yet.
Private notes are available after approval.