The household production is a big aggregate which has no reflection in the current European system of national accounts. The market value of that production accounts for less than 10-15% of the total household production. Generally, household production can be estimated using the input method. Unpaid household work is the main input. There were many proposals of the way of estimating household work, but most economists prefer the market cost method. The first full sequence of accounts, entitled the Household Production Satellite Account for Poland (HHSA) was developed for 2011. It was proven that the value of the household work constitutes approximately 80% of the total value of household production, while the total value of household production in relation to GDP amounted to approximately 36.5%. Providing the regular calculation of the HHSA, which is a supporting tool for the core national accounts, will allow the recognition and better understanding of the transfers and interactions between the market and households. The value and size of the goods and services produced by households can be compared with similar products produced on the market by enterprises.
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Standard measures of economic activity relate to goods and services offered by the market. Stiglitz's report, however, suggests that not only monetary value or economic products create welfare, but non-monetary components should also be included in the System of National Accounts. Although household production is registered in official statistics, the main part of it, i.e. nearly 75-80% of the total home production remains outside of the GDP. The Household Production Satellite Account (HHSA) is a macroeconomic analysis covering both market and non-market home production. The National Time Transfer Accounts (NTTA) is, next to HHSA, an analysis aimed to register and observe the directions of transfers and to present the recipients and givers of home production. Regular estimations provided by the HHSA and NTTA may prove a valuable supporting tool to national accounts, pension systems, or social policy as they provide a great deal of macroeconomic information regarding households, their economic and living conditions, social changes, and welfare.
This article discusses the valuation of household production in the form of a Household Satellite Account. Monetary household calculation based on ”Time Use Survey 2013” was presented. In order to determine the value of household work, an input method was used, based on the amount of time spent on unpaid home-based household chores (providing and maintaining housing, meals and clothing as well as child and adult care or volunteering) and earning rates by occupation. The aim of the research was to indicate the size of non-market household production, which although not included in national accounts could provide information about i.a. the households level and quality of life as well as their contribution to the economy.
On the basis of the analysis, non-market household production is five times higher than the market household production. Regular development of Household Satellite Account can fill the gap in statistics.
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