The question of economic convergence - first part

by Ghizdeanu, Ion , Bria, Tiuta  
Published in Romanian Journal of Economic Forecasting,
volume 8 issue 3, 2007.

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This paper presents the main findings resulted from indicators analysis (gross value added, gross operating surplus, gross national income, etc.) which characterize the institutional sectors – the ones emphasizing the different behaviors and results between the competition and non-competition sectors (households and general government respectively). This analysis is very necessary, because the European Commission, through the specialized directorate - DGECFIN, has included in the forecast framework the indicators regarding incomes and expenditures of institutional sectors (compensation of employees, gross disposable income, gross saving) for member states. The macroeconomic forecast has not yet used this economic approach. The main inconvenience in estimating institutional sectors accounts forecast refers on one hand to the gap between the statistical and forecasting horizons, the statistical data regarding the institutional sectors are available only after a period of two years since the event has occurred (the data series for Romania end in 2004) and, on the other hand, the aggregates evaluation is only carried out in current prices, increasing thus the relativity of data series by using conventional deflators. Until now they are the first estimates referring to the compensation of employees and the gross disposable income. *This paper is partially based on the study “Overview of the economic results by institutional sectors”, NCP, 2007.
Keywords: institutional sector, households, gross value added, compensation of employees, gross operating surplus, gross national income
JEL Classification: E01, E21, E24