SEASONAL ADJUSTMENT OF THE COMPONENTS OF INCOME APPROACH - GENERATION OF INCOME ACCOUNT
Elka Atanasova
Abstract: Subject of the study is the compilation of information contained in the GDP, calculated by the income method as defined by the European System of Accounts (ESA 95) and in turn is directed to the use of the seasonal adjustment of employees’ compensation. The short-term statistical indicators are often affected by seasonal fluctuations and calendar effects related to the difference in the number of working days, making it difficult to identify short-term and long-term trends for the development of variables and analysis of economic phenomena.
As a result, many statistical indicators are subject to seasonal adjustment. The main purpose of seasonal adjustment is to remove the usual seasonal variations, which are those ‘changes that are repeated over a given season every year and which, under normal circumstances can be expected in the future’. Thus the seasonally adjusted data reveal new element in the dynamics of the corresponding indicator, which is the main advantage of the seasonal adjustment.
The procedure for seasonal adjustment of quarterly indicators in national accounts started in 2002, and in 2007 expanded the scope of the indicators that are subject to seasonal adjustment. Seasonal adjustment procedure is performed with the help of the EUROSTAT software - Demetra.
In order to deepen the analysis and identification of trends in the data in this study is presented the sequence algorithm of the seasonal adjustment of employees’ compensation, analysis and evaluation of results.
Presented are the guidelines to improve the practice of national accounts in that direction with the introduction into service of a wide range of graphic, descriptive, parametric and nonparametric criteria for testing the main parameters of the seasonally adjusted data, and the need to adjust the parameters and repeated execution of the procedure for seasonal adjustment in the event that the validation results are unsatisfactory.
As a result, many statistical indicators are subject to seasonal adjustment. The main purpose of seasonal adjustment is to remove the usual seasonal variations, which are those ‘changes that are repeated over a given season every year and which, under normal circumstances can be expected in the future’. Thus the seasonally adjusted data reveal new element in the dynamics of the corresponding indicator, which is the main advantage of the seasonal adjustment.
The procedure for seasonal adjustment of quarterly indicators in national accounts started in 2002, and in 2007 expanded the scope of the indicators that are subject to seasonal adjustment. Seasonal adjustment procedure is performed with the help of the EUROSTAT software - Demetra.
In order to deepen the analysis and identification of trends in the data in this study is presented the sequence algorithm of the seasonal adjustment of employees’ compensation, analysis and evaluation of results.
Presented are the guidelines to improve the practice of national accounts in that direction with the introduction into service of a wide range of graphic, descriptive, parametric and nonparametric criteria for testing the main parameters of the seasonally adjusted data, and the need to adjust the parameters and repeated execution of the procedure for seasonal adjustment in the event that the validation results are unsatisfactory.
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Date published: 2014-06-30
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