Micro Versus Macro Approach on Agricultural Income Measurements for Rural Households in Italian Official Statistics: an Application for Albania. Domenico Ciaccia, Andrea Morreale, Edoardo Pizzoli Rome, 11 june 2009 Developments in agricultural households' income statistics of EU • 1985: Early EU studies and related statistics on agricultural households income • 1988: Project approved by the Committee of agricultural statistics of European Commission, directed by Berkeley Hill • 1998: Further systematization of Istat approach • 2004: Action Tapas 2002 in Istat financed by Eurostat Rome, 11 june 2009 The state of art at European and international level • Several studies in Europe (1988 - 2000): reports by Eurostat • International seminar of Eurostat (1996) • OECD commitment on agricultural income measurement. Followed by Unece, World Bank and Fao • IAHS series update: from both micro and macro sources. Suspended by Eurostat • Project "Feasibility study on the achievement of the European Statistics on Income of agricultural households” Rome, 11 june 2009 Agricultural households' income in Italian national accounts by Istat • Until early 2004: the Central Directorate of National Accounts in Istat has regularly sent to Eurostat agricultural households’ income statistics (years 1984 – 2001) •Complete estimates are available for type A and type B of agricultural households •Households number of both types is constantly changing Rome, 11 june 2009 Agricultural households' income in Italian national accounts by Istat • Households of type A are steadily declining, while those of type B are growing: 800 700 600 500 400 300 200 100 Ye ar s 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 0 Rome, 11 june 2009 Number of households Type A Number of households Type B Agricultural households' income in Italian national accounts by Istat • Number of agricultural households in micro and macro approach: Description N° households type "A " (thousands) Year 1998 1999 2000 Micro approach 391 297 294 Macro approach 352 330 314 Micro approach 679 511 528 Macro approach 440 441 450 N° households type "B" (in thousands) Rome, 11 june 2009 Agricultural households' income in Italian national accounts by Istat • Net disposable income by type of households, macro approach (1984 – 2001): 40 35 30 Net disposable income (1000 euro ) Type A Net disposable income (1000 euro ) Type B 25 20 15 Net disposable income (1000 euro ) Extra 10 Net disposable income (1000 euro ) Total 5 Rome, 11 june 2009 00 20 98 19 96 19 94 19 92 19 90 19 88 19 86 19 84 19 Ye ar s 0 Future of the two approaches: macro- and microeconomic • The sample of households is in both cases not sufficient • The sample should be recalibrated to provide valuable information at micro level, on agricultural and rural groups • The micro approach must be better calibrated to highlight income differences of both types of households Rome, 11 june 2009 Italian experience in Albania • Twinning project "Albanian Statistics towards the EU“ (2003 – 2005): construction of agricultural accounts for Albania (Istat) • Country table of resources & uses, in values and in quantities: to improve the calculation of production account • Prices and quantities produced of agricultural products: to calculate accounts at current and constant prices in line with EU-Eurostat standards Rome, 11 june 2009 Evolution of agricultural sector in Albania (2003 – 2005) • Agriculture still important despite economic growth • Up and down of prices and production • Supply almost exclusively for domestic market •Total agricultural' households income estimates (Year 2004), Composition (%): % Value Items Income from agricultural activity Other income (salaries, social benefits etc.) Remittances from emigrants TOT. (*)- elaborations on Instat data Rome, 11 june 2009 2004 80,0 5,0 15,0 100,0 Conclusions • In the near future: it is necessary to extend agricultural households’ income indicators at regional level (NUTS 2) by means of new data available • There should be also more attention to type “B” of agricultural households, that is a vulnerable group and in constant growth • Possible developments: priority given to agricultural households income statistics in Eurostat •It is important to guide policies at territorial level •What emerges from the evolution of households groups: poorest population is rural, although the gap with the urban one is steadily declining •In short: the experience of Albania is an example of application and exportability of Istat methodology in other realities even if with a limited availability of data Rome, 11 june 2009 References • Barberis, C. (1981) Povertà e distribuzione dei redditi nelle campagne italiane. In Barberis et al. La povertà del mondo rurale in Italia. Franco Angeli. • Ciaccia, D. (1996) Il nuovo SEC e il settore Agricoltura, paragraph 4.3, Annali di statistica - verso il nuovo sistema di Contabilità nazionale, Istat. • EURISPES (2003) La povertà in agricoltura. Una mappa del rischio e del disagio rurale in Italia. • EUROSTAT (1988a) Revenu global des mènages agricoles, thème 5, Sèrie D, B. Hill. • EUROSTAT (1988b) Revenu agricole 1987: analyse de l’indice du revenu sectoriel, thème 5 sèrie D, Chapitre V (Revenu global disponible des mènages agricoles); • EUROSTAT (1989) Manuel sur les comptes èconomiques pour l’agriculture et la sylviculture, thème 5, Sèrie E; • EUROSTAT (1995a) Système Europèen des Comptes: SEC 1995. • EUROSTAT (1995b) Manuel du revenu global des menages agricoles (Rev.1), 10 Theme 5, agricolture Serie E metodes. References • EUROSTAT (2000), Incomes of Agricultural Sector Households , Luxembourg. • ISTAT (1990-2008) Valore aggiunto dell’agricoltura per regione, Collana d’informazione, n. 15. • ISTAT (1985) I consumi delle famiglie. Anno 1984 Supplemento Bollettino mensile di statistica, n. 16. • ISTAT (1995) Occupazione e redditi da lavoro dipendente. Anni 1980-1994, in Collana d’informazione, n. 19. • ISTAT (1998) Il Reddito delle Famiglie Agricole, Argomenti, n. 11. • ISTAT-EUROSTAT (2004) Azione TAPAS 2002, by Ciaccia et al. • Militello, A. (1987) Un confronto tra redditi dichiarati al fisco e redditi stimati dalla Contabilità Nazionale per gli anni 1981 e 1982, in Quaderni di discussione, n. 87, Istat.