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1993 SNA Update Information - Consistency Issues
Decision tree

Moderator
Anne Harrison
Description
The paper on the delineation of the public sector suggests a decision tree to determine whether an NPI falls in the publicly controlled part of corporations or in general government. At the discussion in Bangkok, there was some unease that this may not be a completely watertight way to determine the allocation of NPIs. In addition, if a decision tree is useful for government controlled NPIs, is there a case for having a decision tree for determining the sectoral allocation of all units in the economy? The link to the chart below shows an example of what such a tree might look like. (It was drawn up before the discussion on government SPVs so assumes that, as at present, all non-resident units belong to the rest of the world. Depending on the outcome of the units discussion, some revision may be necessary.)
This tree uses some more steps than those suggested in the delineation paper for allocating publicly controlled units between general government and the publicly controlled sub-sectors of financial and nonfinancial corporations but gives an exhaustive decision tree for all units in the economy. The main sectors of the economy are shown in boxes with double borders. The subdivision of financial and non-financial corporate sectors into public, foreign controlled and national private sub-sectors is also shown. The case of NPIs and their allocation to various sectors is also apparent from the chart.

See chart
Next Steps
The AEG agreed that the sort of decision tree proposed relates to showing how the type of production undertaken by a unit can help to allocate it to the sectors defined in terms of function. As such it would be a useful addition to the text. However, further comment was sought on the precise form of the tree put forward.

Comments are welcome preferably by the end of July but no later than mid-September 2006.
Comments
Number of comments: 5
  Date postedSourceComment
 06/10/2006Johan PrinslooWith the more prominent role allocated to NPIs I am disappointed that it is no longer explicit part of the decision tree. Perhaps the ISWGNA could think of dotted lines to show its presence in a third dimensional way.
 29/09/2006Bank of KoreaWe agree it would be useful to include the chart in the SNA in addition to the description of sectoring.
 20/09/2006Roberto Luis Olinto RamosI believe this kind of tool is a useful way to improve the comprehension of a lot of issues. I fully support the proposal.
 15/09/2006Johann PrinslooThe decision tree would be a useful tool to determine the sectoral allocation of all units in the economy; consequently I support the concept and have no additional suggestions.
 12/09/2006Heidi ArboledaThe decision tree is quite useful in guiding compilers in the classification of a unit to sectors. In the decision tree however, the NPI is separate and from there one can classify NPISH and Government NPI. If we follow the current classification of business NPI, it should belong to NF Corporation of F Corporation but it does not appear as such. If NPI will be classified as a sector as I mentioned above, then it will fit into the decision tree.
Conclusion
Revised version of the decision tree


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