Glossary

A

Accrued net income of farm operators from farm production

Net income received by farm operators from farm production plus the undistributed portion of earnings arising out of the operations of the Canadian Wheat Board and the adjustment made to shift agricultural subsidies from a cash to an accrual basis.

Associations of individuals

Non-profit institutions serving households, such as churches, labour unions and charitable organizations, plus credit unions, trusteed pension plans, life insurance companies, fraternal societies, and mutual non-life insurance companies. They are treated as businesses with respect to their capital outlays and their intermediation activities, but as persons with respect to their current expenses.

B

Base period

Reference period from which prices are taken to calculate an index.

Basic prices

A basic price valuation includes the costs of production factors (labour and capital) and indirect taxes and subsidies on production factors. Income measures are estimated at basic prices or market prices.

Bonds

Marketable and non-marketable securities issued in Canadian or foreign currency with an original term to maturity in excess of one year. Includes:

Canada bonds: Direct bonds of the federal government (includes Canada Savings Bonds) and guaranteed federal enterprise bonds.

Provincial bonds: Direct bonds of provincial governments (includes provincial savings bonds) and guaranteed provincial enterprise bonds.

Municipal bonds: Direct bonds of municipalities and guaranteed municipal enterprise bonds.

Other bonds: Bonds issued by Canadian corporations, hospitals and non-profit institutions, as well as non-guaranteed bonds of government business enterprises. Also included are asset-backed securities.

Business gross fixed capital formation

Includes all expenditures on buildings, engineering construction, and machinery and equipment by the business sector, by both corporations and unincorporated businesses. Business gross fixed capital formation is divided into three major categories in production accounts: residential structures, non-residential structures and machinery and equipment.

Business investment in inventories

Business sector inventories consist of two categories: (i) non-farm inventories and (ii) farm inventories and grain in commercial channels: These two categories are presented in detailed tables in the income and expenditure accounts. Business sector inventories are themselves subdivided into those of the persons and unincorporated businesses sector and those of the corporations and government business enterprises sector. These two estimates are shown in the respective sector accounts under the inventories heading.

Business sector

All transactors producing goods and services for sale at a price intended to cover costs of production, namely corporations, government business enterprises, unincorporated businesses, and independent professional practitioners. It also includes owners occupying their own dwelling, treated as businesses renting to themselves, and associations of individuals, treated as businesses with respect to their capital outlays and their intermediation activities.

C

Canada and Quebec Pension Plans

The part of the government sector which consists of the operations of the Canada and Quebec Pension Plans, established in 1966.

Canadian residents

Institutional units, such as persons, corporations and non-profit institutions, which have a centre of economic interest (a dwelling, a business location) in the economic territory of Canada.

Capital and financial account

This account shows, for each major sector; a) the saving and acquisition of non-financial capital and the difference between them, called net lending; and b) transactions in financial assets, transactions in liabilities and the difference between them, called net financial investment. In theory, the two balancing items, net lending and net financial investment, are equal; in practice, imperfections in the statistics lead to a difference between the two, shown as a statistical discrepancy.

Capital consumption allowances

Allowances for the using up of capital in the productive process. They are calculated for business and government fixed assets as well as housing. They also include miscellaneous valuation adjustments bringing business accounting records into conformity with national accounts definitions, such as the addition of claims paid by insurance companies to compensate for fire and other losses.

Capital transfers

Transfers in cash or in kind, out of the wealth of the donor (inheritances and migrants’ funds, transfer of ownership of an asset or cancellation of a liability), or transfers which the recipient is expected to use towards the acquisition of an asset. Capital transfers have no effect on the saving of the donor or recipient.

Chain Fisher price index

See implicit price indexes.

Chain Fisher volume index

A measure of the change in volume from period to period. It is calculated as the geometric mean of a chain Paasche volume index and a chain Laspeyres volume index. In other words, it is the mean of two distinct measures of change in volume: one calculated as if prices were constant in the first of two consecutive periods (Laspeyres volume) and the other calculated as if prices were constant in the second of the two consecutive periods (Paasche volume).

Chain index

An index which is rebased on a period to period basis, accumulated multiplicatively from a base period value. For example, the chain Fisher volume index calculates the Fisher volume index in each pair of consecutive quarters, treating the earlier quarter as the base period.

Chain Laspeyres volume indexes

A measure of the change in volume from period to period. It is calculated as if prices were constant in the first of two consecutive periods. The indexes of each of the periods are linked together in a chain to form an index. Chain Laspeyres volume indexes are one of the components of the chain Fisher volume indexes that are the official measure of the income and expenditure accounts.

Chain Paasche volume indexes

A measure of the change in volume from period to period. It is calculated as if prices were constant in the second of two consecutive periods. The indexes of each of the periods are linked together in a chain to form an index. The chain Paasche volume indexes are one of the components of the chain Fisher volume indexes that are the official measure of the income and expenditure accounts.

Changing the base period

Involves redefining the base period on which the weightings are established.

Claims

Financial instrument comprising:

Corporate claims: Loans, advances and issues of debt between associated corporations; on the asset side, also includes investment in shares between associated corporations.

Government claims: Claims between governments, between related government business enterprises or between a parent government and its enterprises, in the form of shares, debt securities, loans and advances.

Consumer credit

Credit extended to persons for purchasing consumer goods and services.

Consumer goods

New goods acquired by households for their own consumption. Comprises three categories:

Durable goods, which can be used repeatedly or continuously for more than one year, such as motor vehicles and major appliances;

Semi-durable goods, which can be used on multiple occasions and have an expected lifetime of one year or somewhat more, such as clothing, footwear and linens;

Non-durable goods, which can be used only once, such as food, gasoline, alcoholic beverages and tobacco; in practice, the latter also include a few goods of little value used more than once, such as household supplies.

Consumer services

Services consumed by households, such as rent (including the rent imputed on owner-occupied housing), transportation, education, medical care, child care, food and accommodation services as well as travel expenditures of Canadians abroad, less travel expenditures of foreigners in Canada. Also includes the current (operating) expenses of associations of individuals and unincorporated businesses.

Contributions to percent changes

These estimates show the contribution of a sub-aggregate to the percent change in an aggregate. For example, if personal consumer spending increases 2% and the contribution to the percent change by motor vehicle purchases is 1%, then motor vehicle purchases would be said to have accounted for half of the increase in personal consumer spending.

Contributions to social insurance plans

Employer and employee contributions to employment insurance, the Canada and Quebec Pension Plans and workers’ compensation.

Corporation profits before taxes

The net earnings from economic activity of privately-held corporations, measured after deduction of capital consumption allowances.

Corporations and government business enterprise sector

All business transactors whose legal form of organization is the corporation, plus government business enterprises. This sector is divided into non-financial and financial enterprises. The latter are comprised of several sub-sectors (Bank of Canada, chartered banks, credit unions, life insurance companies, trusteed pension funds, mutual funds, etc.). The intermediation activities of credit unions, life insurance companies and trusteed pension funds shown as assets of these sub-sectors are balanced by claim liabilities which, in turn, are assets of the persons and unincorporated business sector.

Currency and deposits

Financial instruments comprising:

Currency and bank deposits: Deposits denominated in Canadian dollars at chartered banks in Canada and at the Bank of Canada, plus Canadian currency and coin in circulation.

Other deposits: All deposits at other Canadian deposit-taking institutions, including shares in credit unions.

Foreign currency and deposits: Holdings of foreign currency and foreign currency denominated deposits at chartered banks in Canada, foreign branches and subsidiaries of Canadian chartered banks, foreign banks and other foreign deposit-taking institutions.

Current prices

A valuation at current prices is expressed at the prices prevailing during the period being referred to.

Current transactions with non-residents

Exports of goods and services less imports of goods and services, plus net investment income from non-residents and net current transfers from non-residents.

Current transfers

Transfers from the income of the donor, which reduce his saving and add to that of the recipient.

Current transfers from corporations to persons

Charitable donations and other contributions.

Current transfers from government to business

Subsidies to the business sector.

Current transfers from government to non-residents

Pensions paid to non-residents, contributions to international organizations and economic and technical assistance as well as food aid provided by the Canadian International Development Assistance Agency and other governmental agencies.

Current transfers from government to persons

Payments such as the Child Tax Benefit/Credit, Employment Insurance benefits, old age security benefits, welfare payments, scholarships and research grants, workers’ compensation benefits, grants to aboriginal peoples and their organizations, pensions paid under the Canada and Quebec Pension Plans, and veterans’ allowances.

Current transfers from non-residents to government

Withholding taxes paid by non-residents to the Government of Canada.

Current transfers from non-residents to persons

Pensions paid by foreign governments to Canadian residents plus remittances by non-residents to Canadian residents.

Current transfers from persons and unincorporated businesses to government

Income taxes, contributions to social insurance plans and other current transfers.

Current transfers from persons to corporations

The transfer portion of interest on the consumer debt.

Current transfers from persons to non-residents

Remittances by Canadian residents (particularly religious and charitable organizations) to non-residents and withholding taxes paid abroad.

D

Deflation

Process of eliminating price change from a specific time series.

Disposable income

See personal disposable income.

Dividends

Income payable and receivable in respect of corporate equities (cash dividends) and further equity participation in corporate enterprises (stock dividends).

E

Economic territory

The economic territory of a country encompasses the geographic territory, plus the air space, territorial waters and continental shelf, as well as its territorial enclaves abroad (embassies, consulates, military bases, etc.).

Existing assets

See net acquisition of existing assets.

Exports and imports of goods and services

Current receipts and payments arising out of transactions in moveable goods and services between residents and non-residents. Services include travel, freight and shipping, business services, government transactions, financial intermediation and other services.

F

Factor cost

A valuation reflecting the cost of production factors (labour and capital). It corresponds to the value remaining after the deduction from market prices of all applicable taxes and subsidies.

Farm inventories

Farm output stored on farms; includes grains, tobacco, potatoes and livestock.

Final domestic demand

The sum of personal expenditure on consumer goods and services, net government current expenditure on goods and services, government gross fixed capital formation and business gross fixed capital formation.

Fisher index

Geometric mean of the Laspeyres index and the Paasche index.

Fisher volume index

Geometric mean of the Laspeyres volume index and the Paasche volume index. See volume index.

Fixed capital

See gross fixed capital formation.

Fixed-weighted price indexes

Also known as “Laspeyres” indexes, these are price indexes where a fixed pattern of expenditure from some base period is used to aggregate the detailed price indexes in each period.

Foreign investments

All marketable financial instruments (bonds, short-term paper and shares) which are liabilities of the non-resident sector (foreign governments and corporations) and assets of domestic sectors.

G

GDP

See Gross Domestic Product.

Government business enterprise profits before taxes

Net earnings from the economic activity of government business enterprises, measures after deduction of capital consumption allowances.

Government business enterprises

Government enterprises and agencies which operate on a profit or cost recovery basis and whose motivation is similar to that of private enterprises. Their total profits (net of losses) are recorded in GDP, while only the profits remitted to government are recorded in the government income and expenditure account, under government investment income. The difference between these two measures, retained earnings, forms part of business sector saving.

Government current expenditure on goods and services

All current outlays for goods and services by the government sector, including wages and salaries of government employees. It also includes expenditure on weapons for defence and an imputation for the depreciation of government fixed assets. It is recorded before deduction of revenues from sales of goods and services in the government income and expenditure account, and after deduction of these revenues in GDP (net government current expenditure on goods and services).

Government gross fixed capital formation

This covers all expenditures on buildings, engineering construction and machinery and equipment. Government gross fixed capital formation includes spending on non military defence buildings and equipment (airports, docks, roads, hospitals, transport aircraft, etc.). Abbreviated as fixed capital in the government capital and financial account.

Government investment in inventories

Government inventories include only uranium stocks, up to 1981, and those held by federal government commodity agencies, such as the Canadian Dairy Commission. Abbreviated as inventories in the government sector account.

Government investment income

In GDP, includes interest income of public service pension plans, other interest and dividend income of governments and royalties. In the government income and expenditure account, it also includes the profits of government business enterprises remitted to government. See government business enterprises.

Government sales of goods and services

Revenues from the sale of goods and services, such as water charges, landing fees and charges for government documents.

Government sector

All departments, agencies, and funds (budgetary and non-budgetary) of the federal, provincial and local levels of government, as well as crown corporations which receive more than 50% of their revenues in grants from their parent governments. Also included are school boards, universities, non-profit colleges, hospitals, non-profit residential care facilities, as well as the Canada and Quebec Pension Plans.

Grain in commercial channels

Grain in the hands of the Canadian Wheat Board or private grain dealers.

Gross domestic product (GDP)

The total unduplicated value of the goods and services produced in the economic territory of a country or region during a given period. GDP can be measured three ways: as total incomes earned in current production (income approach), as total final sales of current production (expenditure approach), or as total net values added in current production (value added approach). It can be valued either at basic prices or at market prices. In the income and expenditure accounts, gross domestic product is measured by the income and expenditure approach.

Gross fixed capital formation

This expression covers all expenditures on buildings, engineering construction and machinery and equipment. Gross capital formation in machinery and equipment includes imports of used machinery and equipment since the latter constitute additions to domestic capital stock. Gross fixed capital formation in buildings includes transfer costs on the sale of existing assets (e.g. real estate commissions). Abbreviated as fixed capital in the capital and financial account. Synonym of investment in fixed capital.

Gross fixed capital formation, corporations and government business enterprises sector

This includes all expenditures on buildings, engineering construction and machinery and equipment in the corporations and government business enterprises sector. It includes a large portion of the gross fixed capital formation in non-residential structures and machinery and equipment of the business sector. Abbreviated as fixed capital in the corporations and government business enterprises sector account.

Gross fixed capital formation, persons and unincorporated businesses sector

This includes all expenditures on buildings, engineering construction and machinery and equipment in the persons and unincorporated businesses sector. It includes mainly the gross fixed capital formation in residential structures but also includes a small portion of non-residential structures and machinery and equipment. Abbreviated as fixed capital in the persons and unincorporated businesses sector account.

Gross national product

A measure of income equal to the Gross domestic product at market prices, plus investment income received from non-residents, less investment income paid to non-residents.

Gross saving

Net saving plus capital consumption allowances.

H

Holding gains and losses

Additions to or subtractions from income which result from selling an asset for more or less than its purchase price. As holding gains and losses are not related to current production, they are excluded from GDP through the inventory valuation adjustment.

Households

A group of persons who share the same living accommodation, pool some, or all of their income and wealth and consume certain goods and services collectively. They may engage in any other kind of economic activity.

I

Implicit price indexes

These price indexes are a by-product of the deflation procedure, obtained by dividing an expenditure series expressed at current prices by the corresponding series expressed in real terms. For all volume aggregates published in the income and expenditure accounts, the implicit price indexes are the chain Fisher price indexes.

Imports of goods and services

See exports and imports of goods and services.

Income and outlay account

See income and expenditure accounts

Income and expenditure accounts

These accounts show, for each major sector, all sources of current income (production, receipts of property income and other transfers) and all current outlays (expenditure on goods and services, payments of property income and other transfers), as well as net saving, equal to a sector’s income less its outlay.

Inheritances and migrants' funds

Capital brought to Canada by immigrants at the time of arrival or transferred outside Canada by emigrants at time of departure, or intended to be transferred at a later date, plus bequests to Canadian residents from non-residents or vice-versa.

Interest and miscellaneous investment income

Investment income of persons, except dividends, plus government investment income, less net investment income of persons and governments received from non-residents, less the transfer portion of interest on the consumer debt, less the interest on the public debt.

Interest, dividends and miscellaneous investment income of persons

Includes income of persons and unincorporated businesses as owners of financial or tangible non-produced assets in return for putting the assets at the disposal of another institutional unit. Interest includes interest on Canadian bonds, mortgage interest paid to persons and interest on deposits. Miscellaneous investment income includes accrued interest in pension plans, life insurance funds and interest on investments made by other associations of individuals.

Interest on the consumer debt

Interest paid by persons on account of liabilities incurred to finance personal expenditure on consumer goods and services. Consists of two parts: the administrative expenses, representing the cost of rendering services to borrowers, and the remaining “transfer portion”.

Interest on the public debt

Interest payments on liabilities of the government sector.

Inventories

See investment in inventories.

Inventory valuation adjustment

The difference between the change in inventory book values and the value of physical change in inventories, which is a measure of the net holding gain or loss realized by business as a result of price changes. Holding gains and losses on inventories are present in corporation profits and other income aggregates, and must be removed in order to measure the value of current production.

Investment in fixed capital

Synonym of gross fixed capital formation.

Investment in inventories

Change in the physical volume of business and government inventories, valued at the average market prices of the period.

Investment in inventories, corporations and government business enterprises

Consists of most of the investment in inventories of the business sector except for a portion of non-farm inventories held by unincorporated farm businesses. Abbreviated as inventories in the corporations and government business enterprises sector account.

Investment in inventories, persons and unincorporated businesses sector

Consists mainly of farm inventories held by unincorporated farm businesses. Abbreviated as inventories in the persons and unincorporated businesses sector account.

Investment income of persons

Interest on deposits, bonds, mortgages, etc., and royalties paid by corporations, governments and non-residents to persons, plus investment income accumulating on their behalf in trusteed pension plans and life insurance funds, or on behalf of other associations of individuals. Excludes dividends.

Investment income paid to non-residents

Investment income payments on Canadian liabilities to non-residents, inclusive of any applicable withholding taxes. Includes interest, dividends and other payments such as net expenses of Canadian banks from foreign currency transactions and net revenues of foreign insurance companies from insurance operations in Canada.

Investment income received from non-residents

Investment income earned by Canadian residents on their assets abroad, inclusive of any applicable withholding taxes. Includes interest, dividends and other receipts such as net earnings of Canadian banks from foreign currency transactions and net revenues of Canadian insurance companies from insurance operations abroad.

L

Labour income

The sum of wages and salaries plus supplementary labour income.

Laspeyres index

Index calculated by using prices or volumes from a predetermined base period as weights.

Life insurance and pensions

Liability of life insurance companies and trusteed pension plans to policyholders or beneficiaries and federal government liability with respect to annuities sold under the Annuities Act, as well as government employer-sponsored pension plans. Asset of policy holders or beneficiaries.

Loans

Financial instrument comprising bank loans and other loans. Negotiated loans made by chartered banks and other financial institutions.

M

Machinery and equipment

Capital expenditures on durable, tangible goods with an expected service life of one year or more, such as furniture, motor vehicles, office machines and equipment not permanently installed (permanently built-in equipment belongs to non-residential construction). Includes installation and delivery costs.

Market prices

A valuation expressed in terms of the prices actually paid by the purchaser, that is, after all applicable taxes and subsidies. See factor cost.

Military pay and allowances

The part of labour income consisting of payments to members of the Armed Forces serving in Canada or abroad. Includes military pay, allowances and the employer’s social contributions. Excludes veterans' allowances, treated as transfer payments.

Mortgages

Negotiated loans and agreements of sale secured by real property, mostly residential structures. Includes first, second and third mortgages. Mortgages are characterized by blended repayments, usually monthly, of principal and interest.

N

Net acquisition of existing assets

A sector’s purchases less sales of used fixed assets and land. Business purchases less sales of natural resources, resource rights and intangible assets are also included. Does not apply to the non-resident sector which, by definition, acquires only financial investments. Abbreviated as existing assets in the capital and financial account.

Net capital transfers

Capital transfers from other sectors less capital transfers to other sectors.

Net domestic product at basic prices

The sum of all incomes arising from production, or ownership of assets used in production, within the economic territory of a country or region. This income includes labour income, profits before taxes, interest and miscellaneous investment income, accrued net income of farm operators from farm production, net income of non-farm unincorporated business including rent, and the inventory valuation adjustment. Taxes and subsidies on factors of production are also included since the size of these components is directly linked to the production decisions of producers. Differs from GDP at basic prices in that it excludes capital consumption allowances.

Net financial investment

The net lending (or borrowing) of a sector can be measured either through incomes and expenditures or through financial transactions. Under the financial transactions approach, net lending is called net financial investment. It is equal to a sector’s transactions in financial assets less its transactions in liabilities. See net lending and capital and financial account.

Net income of non-farm unincorporated business, including rent

Earnings of unincorporated proprietors, except farm operators, from their own business. Includes the net income of unincorporated businesses and self-employed individuals, as well as the net rental income of persons.

Net income of unincorporated business

The sum of net accrued income received by farm operators from farm production and net income of non farm unincorporated business, including rent.

Net income received by farm operators from farm production

Gross proceeds from the sale of farm products, plus subsidies on a cash basis, plus the imputed value of farm output consumed by farming households, plus investment in farm inventories, less farm operating expenses and depreciation on farm buildings and equipment. Excludes other types of income, such as net rent or interest receipts, and profits of incorporated farms. See accrued net income of farm operators from farm production.

Net investment income from non-residents

Investment income received from, less investment income paid to, non-residents.

Net lending

The net lending (or borrowing) of a sector can be measured either through incomes and expenditures or through financial transactions. Under the income and expenditure approach, net lending is the difference between internally generated funds and outlays on non-financial capital. A sector’s net lending equals its saving, plus its capital consumption allowances and net capital transfers from non-residents, less its investment in fixed capital and inventories. Net lending (or borrowing) is also referred to as sector surplus (or deficit). See net financial investment and capital and financial account.

Net national income at basic prices

Net domestic product at basic prices plus net investment income of non-residents.

Net reinvested earnings on direct investment

Reinvested earnings (REI) are profits earned on, less dividends received from, direct foreign investment. From 1961, equity income from direct foreign investment is recorded on an accrual rather than cash basis in the Balance of International Payments. Net REI are defined as REI on foreign direct investment in Canada less REI on Canadian direct investment abroad. Net REI gives rise to an additional reconciliation item between the Canadian Balance of International Payments Accounts and the national income and expenditure accounts, in which this change has not been incorporated.

Net rental income

Earnings of persons, after expenses, arising from the ownership of residential property, whether rented or owner-occupied, and from the rental of non-residential property.

Net saving

The current income of a sector, less its current expenditure. Includes current transfers but excludes capital consumption allowances and capital transfers. Synonym of saving.

Non-farm inventories

Inventories of raw materials, goods-in-process and finished products.

Non-financial capital acquisition

Includes the gross fixed capital formation of a sector (fixed capital), plus its investment in inventories (inventories) and its net acquisition of existing assets (existing assets). Does not apply to the non-resident sector which, by definition, can only engage in financial investment.

Non-resident sector

All transactors who do not have a centre of economic interest (a dwelling, a business location) in the economic territory of Canada. By definition, non-residents can only engage in financial investment. Any transactor making non-financial investment is deemed to be a resident.

Non-residential structures

Construction of industrial, commercial and institutional buildings, such as plants, warehouses, shopping centres, office buildings, schools and hospitals, plus construction of highways, bridges, railway tracks, canals, waterworks, sewage systems, dams, hydro or thermal generating plants, telephone lines, oil and gas facilities, etc. Includes new construction, conversions resulting in a structural change, major renovations, permanently built-in equipment and site preparation.

Non-residential structures and equipment

The sum of business investment in non-residential structures and in machinery and equipment.

O

Official reserves

The sum of a) official holdings of gold and foreign exchange (U.S. dollars and deposits in other convertible currencies), b) loans to or from the International Monetary Fund on general account, and c) special drawing rights.

Other current transfers from persons to government

Transfers not classified as direct taxes. Includes hospital and medical care insurance premiums, various licences and permits, (hunting and fishing licenses, marriage licenses, etc.) fines and penalties, the personal portion of motor vehicle licenses and permits, as well as donations to entities within the government sector.

Other financial assets / Other liabilities

Various items not included under other financial instruments, such as accrued interest, interest receivable or payable and prepaid expenses.

Outside Canada

Embassies and other Canadian government offices abroad which are part of the territory of Canada.

P

Paasche index

Index calculated by using prices or volumes from the current period as weights.

Personal disposable income

Personal income less current transfers to government.

Personal expenditure on consumer goods and services

Household spending on new consumer goods and on consumer services, plus any mark-up on used goods. Operating expenses of associations of individuals serving households are also included, under consumer services.

Personal income

The sum of all incomes received by persons residing in Canada, whether factor earnings from current production or current transfers from other sectors, plus the investment income that associations of individuals accumulate on their own behalf or on behalf of persons.

Personal saving

Personal disposable income less personal expenditure on consumer goods and services, less current transfers from persons to corporations and to non-residents.

Personal sector

All persons, households and associations of individuals serving households.

Persons

See personal sector.

Persons and unincorporated business sector

Transactors of the personal sector plus those of the unincorporated business sector. In the capital and financial account, transactions of these two sectors are consolidated. In addition, in this account, although credit unions, life insurance companies and trusteed pension plans appear as sub-sectors of the corporations and government business enterprise sector, their transactions in financial assets are balanced by liabilities which, in turn, are recorded as assets of the persons and unincorporated business sector.

Price index

Measure of the change in prices in index form. There are several methods of measuring indexes. See Laspeyres index, Paasche index, Fisher index, chain index and implicit price indexes.

Production factors

Transactors which, when combined, result in economic production. In general, there are two production factors: labour and capital.

R

Real

In the national accounts, real means the estimation of the aggregate in volume, possibly in the form of a volume index or an estimate in real dollars.

Real dollars

A dollar estimate of the volume of economic activity obtained by applying the growth in a volume index to the value of a specific series for a given reference period.

Rebase, to

See changing the base period.

Reference period

The period when the value of a series in constant dollars is equal to the value of the same series in current dollars. The current reference year is 1997 (current dollars are equal to constant dollars in 1997).

Residential structures

Construction of dwellings (includes single, semi-detached, row housing and apartments), garages, cottages and mobile homes. Includes new construction, conversions resulting in a structural change and major renovations (together referred to as “alterations and improvements”), permanently built-in equipment, site preparation and transfer costs such as real estate commissions.

S

Saving

See net saving.

Saving rate

The ratio between net saving of the persons and unincorporated businesses sector and personal disposal income, expressed in percentage.

Sector accounts

The quarterly national accounts include the full sector accounts. They record the income, outlay, saving, non-financial and financial investment, borrowing and net lending for the four main sectors: (a) persons and unincorporated businesses; (b) corporations and government business enterprises; c) government; and d) non-residents. See income and expenditure account and capital and financial account.

Semi durable goods

See consumer goods.

Shares

Financial instrument consisting of common and preferred shares (including term preferred shares and mutual fund shares), plus contributed surplus. Stock issued by a government business enterprise to a parent government is classified to government claims.

Short-term paper

Marketable financial instrument comprising:

Government of Canada short-term paper: Treasury bills, which are notes of original term to maturity of less than one year, issued at a discount and sold at auction every week; also includes Canada bills issued in foreign currency.

Other short-term paper: Notes of original term to maturity of one year or less, issued at a discount by a variety of financial and non-financial institutions; includes provincial and municipal Treasury bills as well as asset-backed securities.

Statistical discrepancy

Double-entry bookkeeping is fundamental in national accounting and several aggregates, such as GDP and net lending, can be calculated in two or more ways. In principle, all the measures of an aggregate are equal. In practice, differences invariably arise between them due to imperfections in basic statistics and estimation techniques. This difference is called a statistical discrepancy and serves as the balancing item between two theoretically equal aggregates. It can be recorded as is, like the discrepancy between the two estimates of net lending or it can be divided in two, one half being subtracted from the higher estimate and the other, added to the lower one, like the discrepancy between income-based and expenditure-based GDP.

Subsidies

Transfers from government to the business sector toward current costs of production. These transfers represent additions to the income of producers from current production. Subsidies can be linked to production factors or products.

Subsidies on products

These subsidies are paid by unit of good or service. They can take the form of a specific monetary amount paid by unit quantity of good or service or can be calculated ad valorem as a specific percentage of their unit price. Examples of product subsidies are those paid for agricultural products, transportation services and energy.

Subsidies on factors of production

Production subsidies are subsidies received by a unit that are unrelated to the quantity or the value of goods produced or sold. They are primarily subsidies on wages and labour, pollution reduction subsidies and interest subsidies. Investment assistance is not included.

Supplementary labour income

Employers’ social contributions, either compulsory or voluntary. Includes retirement allowances and contributions to employment insurance, the Canada and Quebec Pension Plans, other pension plans, workers' compensation, Medicare, dental plans, short- and long-term disability insurance, etc.

Surplus or deficit on current account in the Canadian Balance of International Payments

The surplus or deficit of Canada on current transactions with non-residents plus net reinvested earnings on direct investment.

T

Taxes less subsidies on factors of production

Difference between taxes on factors of production and subsidies on factors of production. These taxes and subsidies are payable (received) regardless of the quantity or value of the goods and services produced or sold.

Taxes less subsidies on products

Difference between taxes on products and subsidies on products. These taxes and subsidies are payable (received) based on the quantity or value of the goods and services produced or sold.

Taxes on factors of production

These are mandatory payments without consideration, in cash or in kind, collected by government. They apply to production and the import of goods and services, employment of labour and ownership or use of land, structures and other assets used for production purposes. They are payable regardless of the quantity or value of the goods and services produced or sold.

Taxes on products

These are mandatory payments without consideration, collected by government on the sale of goods and services. These taxes include sales taxes, fuel taxes, import duties and taxes, excise taxes on tobacco and alcohol.

Trade accounts receivable/payable

Short-term credit advanced or received in the ordinary course of business by suppliers or buyers of business goods and services.

Transactors

Economic agents who engage in transactions involving the purchase and sale of goods and services and the payment and receipt of factor incomes and transfers.

Transfers

Cash, good, service, or asset other than cash transferred by one transactor to another without counterpart, that is, without the donor receiving anything in return. See current transfers and capital transfers. Synonym of transfer payments.

Transfer payments

See Transfers.

U

Unincorporated business sector

All business transactors whose legal form of organization is not the corporation. Includes independent business operators, self-employed farmers, fishermen and professionals and unincorporated landlords (including those renting to themselves).

V

Volume

Volume consists of the changes in quantity and quality.

Volume index

A measure of growth with the effects of price removed, presented in index form. There are several methods of measuring indexes. See Laspeyres index, Paasche index, Fisher index, chain index. The income and expenditure accounts use the chain Fisher volume index to calculate the real GDP.

W

Wages and salaries

Total remuneration, in cash or in kind, paid to employees in return for work done. It is recorded on a gross basis, before any deduction for income taxes, pensions, unemployment insurance and other social insurance schemes. Also includes other forms of compensation, namely commissions, tips, bonuses, directors' fees and allowances such as those for holidays and sick leave, as well as military pay and allowances. Excludes employers’ social contributions, which are treated as supplementary labour income.

Withholding taxes

Taxes withheld by the Government of Canada on selected income and service payments to non-residents, or withheld by foreign governments on selected income and service payments to Canadian residents.