New approaches implemented and technical explanatory notes

1.New approaches implemented for the 2000 I-O Tables

(1) Creation of the new "Nursing Care" sector

In line with the introduction of the Long-Term Care Insurance System in April 2000, new "Nursing Care (In-home)" and "Nursing Care (In-facility)" sectors were introduced for the 2000 I-O Tables. Basically, these sectors cover the services provided through the Long-Term Care Insurance System. As annual values are needed for I-O analysis, the values from January to March 2000 were calculated for annual estimation.

These sectors exclude "the purchase of welfare tools and equipment" and "housing renovation services," which come under In-home services.

"The purchase of welfare tools and equipment" is included in the "Some Kinds of Goods" sector, while "housing renovation services" is in the "House Rent (imputed house rent)" sector through the "Repair of Construction" sector.

(2) Creation of the new "Reuse and Recycling" sector

The new "Reuse and Recycling" sector was created for the 2000 I-O Tables, in recognition of the growing focus on these activities.

To estimate the output of reuse and recycling, the cost of collecting and reprocessing plastic waste such as polyethylene terephthalate (PET) bottles and plastic trays were included for the first time, due to a recent increase in quantity. The cost of goods such as used paper, scrap iron and non-ferrous metal scraps previously treated as scraps is also estimated as part of the output.

(3) Incorporation of the 1993 SNA

The revised draft of the System of National Accounts (SNA) adopted at the 15th United Nations Statistics Commission in 1968 was approved as the 1993 SNA at the 27th Statistical Commission in 1993. The United Nations Economic and Social Council recommended that member states consider using this revised SNA. The revision encompasses many new features. In Japan, the 1995 I-O Tables adopted the concepts of the 1993 SNA, and made some modifications. To further incorporate the concepts of the 1993 SNA, the following modifications were implemented for the 2000 Input-Output Tables.

  1. (a) Incorporation of computer software as fixed capital formation
    To date, except for software used by households, computer software has been treated as intermediate consumption. In the 2000 I-O Tables, software able to be regarded as fixed capital formation is output to the fixed capital formation column. Note: goods to be set aside as fixed capital formation must have more than one year of life, and a purchase price of more than 100,000 yen.
  2. (b) Calculation of consumption of social capital
    Consumption of some social capital such as roads and dams, not previously reckoned, was calculated for the first time. These costs are output to the column of general government expenditure.
  3. (c) Incorporation of duality in consumption expenditure
    Starting with the 1995 I-O Tables, transfer expenditures such as medical expenditure paid by the government or social insurance and school textbooks as social transfers in kind are treated as government expenditure for individual goods and services. Transfer expenditure on nursing care, new in the 2000 I-O Tables, is treated in the same manner.

Long-term care insurance benefits are output to the column of "central government expenditure for individual goods and services" from the rows of "Nursing Care (In-home)" and "Nursing Care (In-facility)". As mentioned above, expenditure for welfare tools and equipment are output to the column of the "central government expenditure for individual goods and services" from the rows of each good, and expenditure for housing renovation involving nursing care services is also output to the same column from "House Rents (imputed rents)" through "Repair of Construction". In principle, the whole of "House Rents (imputed rents)" should be output to the column of household consumption expenditure. However, due to the principle of "duality of consumption expenditure" in the 1993 SNA, "House Rents (imputed rents)" involving housing renovation for nursing care services are output to both government and household consumption expenditures.

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2.Technical explanatory notes

(1) Increase in domestic production (Creation of new "Reuse and Recycling" sector)

Before the 1995 I-O Tables, input and output of scraps and by-products were offset in accordance with the Negative Input Method, or the Stone Method. Therefore, no output of scraps or by-products was shown in the table. For the 2000 I-O Tables, due to the creation of the new "Reuse and Recycling" sector, a methodical change has been made in that scraps and by-products are now treated as materials to be consumed in reuse and recycling activities. They are then reprocessed completely to become recycled products for other intermediate purchases or final uses. The output for reuse and recycling is estimated as the sum of materials and the cost of collecting and reprocessing.

(2) Increase in domestic production (Inclusion of consumption of social capital in capital consumption and in government consumption expenditure)

The 2000 Input-Output Tables incorporated social capital consumption of roads and dams for the first time. This incorporation increasingly affects the figures for domestic products as well as capital consumption in gross value added and government expenditure in final demand, both of which include social capital consumption. However, since some areas of social capital consumption had already been incorporated in the 1995 I-O Tables, a comparison between the 1995 and the 2000 Tables, which only exclude the new figures, is not possible. Users should be aware of this point.

(3) Transactions in Cellular Phones and Changes in Consumption Expenditure Outside Households (row and column)

The new "Cellular Phone" sector was formed from the "Radio Communication Equipment" sector for the 2000 I-O Tables. The mode of operation of mobile telecommunications carriers makes the price system complex, resulting in a huge gap between the producer price and purchase price. In the 2000 I-O Tables, this gap is treated as a direct expense of the "Mobile Telecommunication" sector to be allocated as part of the "Consumption Expenditure Outside Households (row)". The equivalent is set aside as purchase of the "Consumption Expenditure Outside Households (column)" from the "Cellular Phone" sector.

(4) Component figures

The component figures may not add up the total because of rounding.

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