Social Situation Observatory- Network on Income distribution and living conditions

Jarmila Tkacikova

The conditions and costs of living in over-indebtness

EC Employment, Social affaiirs § Equal Opporrtunities

Brussells, 2009

Introduction

„Just one euro“ – small story

Value, price and cost of product, credit, nonbanking credit, and non legal money, fictive, or black money...

One euro per person, per day for living

In comparison with famous „the last dollar“ citate

Slovak CPI basket research

11 categories of products/ servicies

In reports the original weight

the CPI basket and sample weight

the number of products in the sample for

each category in the dataset

Follow-up research on prices, inflation and

other influences

Example of the Slovak CPI basket

In %

Food and Non-Alcoholic Beverages 23.60

Alcoholic Beverages and Tobacco 6.98

Clothing and Footwear 7.51

Housing, Water, Gas and Electricity 21.50

Furnishing & Maintenance of Housing 5.18

Health Care Expenses 1.45

Example of the Slovak CPI basket II

Transport 9.25

Communications 2.73

Leisure and Culture 7.21

Education 0.58

Hotels, Cafés and Restaurants 7.22

Miscellaneous Goods and Services 6.79

Total 100 %

EU SILC 9/2009 Selected collection EU 27 § SR

EU-SILC (European Union - Statistics on Income and Living Conditions)

Only selected groups and data

European indicators as example

First item is as average EU 27

Second is Slovakia item

Comments or examples will be expressed during presentation

Long term government bond yields - Monthly average

(NSA)

Short description: Long term government bond yields refer

to central government bond yields on the secondary market,

gross of tax, with a residual maturity of around 10 years.

The bond or the bonds of the basket have to be replaced

regularly to avoid any maturity drift. This definition is used in

the convergence criteria of the Economic and Monetary

Union for long-term interest rates, as required under Article

121 of the Treaty of Amsterdam and the Protocol on the

convergence criteria. Data are presented in raw form.

Source: European Central Bank (ECB)

3.96[2009m10] 4.33[2009m10]

Current account - quarterly: Total

Short description: The current account is the sum of the balance

of trade (exports minus imports of goods and services), net factor

income (such as interest and dividends) and net transfer

payments (such as foreign aid). The current account is one of the

three Balance of Payments sub-balances together with capital

account and financial account. The Balance of Payments is the

statistical statement that systematically summarises, for a specific

time period, the economic transactions of an economy with the

rest of the world. Definitions are based on the IMF Fifth Balance of

Payments Manual (BPM5). Data are expressed in million euros.

Data are presented in raw form. Source of euro area data:

European Central Bank (ECB).

-346[2009q02]

86.0[2009m10] 70.7[2009m10]

Economic sentiment indicator - Index (SA)

Short description: The Economic Sentiment Indicator (ESI) is a

composite indicator made up of five sectoral confidence indicators with

different weights: Industrial confidence indicator, Services confidence

indicator, Consumer confidence indicator, Construction confidence

indicator Retail trade confidence indicator. Confidence indicators are

arithmetic means of seasonally adjusted balances of answers to a

selection of questions closely related to the reference variable they are

supposed to track (e.g. industrial production for the industrial confidence

indicator). Surveys are defined within the Joint Harmonised EU

Programme of Business and Consumer Surveys. The economic

sentiment indicator (ESI) is calculated as an index with mean value of

100 and standard deviation of 10 over a fixed standardised sample

period. Currently, mean and variance are fixed over the period 1990-

2007. Source: DG ECFIN

0.2[2009m10] 0.2[2009m10]

HICP - All items - Index (2005=100) - Percentage change t/t-1

Short description: Harmonized Indices of Consumer Prices (HICPs) are designed for

international comparisons of consumer price inflation. HICPs are used for the

assessment of the inflation convergence criterion as required under Article 121 of the

Treaty of Amsterdam and by the ECB for assessing price stability for monetary policy

purposes. The ECB defines price stability on the basis of the annual rate of change of

the euro area HICP. HICPs are compiled on the basis of harmonized standards, binding

for all Member States. Conceptually, the HICPs are Laspeyres-type price indices and

are computed as annual chain-indices allowing for weights changing each year.

The common classification for Harmonized Indices of Consumer Prices is the COICOP

(Classification Of Individual COnsumption by Purpose). A version of this classification

(COICOP/HICP) has been specially adapted for the HICPs. Sub-indices published by

Eurostat are based on this classification. HICPs are produced and published using a

common index reference period (2005=100) Growth rates are calculated from published

index levels.ňIndexes, as well as both growth rates with respect to the previous month

(M/M-1) and with respect to the corresponding month of the previous year (M/M-12) are

neither calendar nor seasonally adjusted.

-0.41[2009m09] 0.09[2009m09]

Industrial domestic output prices - Total industry excluding

construction - Index (2005=100) - Percentage change t/t-1 - NSA

Short description: The industrial domestic output price index measures the

average price development of all goods and related services resulting from the

activity of the industry sector and sold on the domestic market. The domestic

output price index shows the monthly development of transaction prices of

economic activities. The domestic market is defined as customers resident in

the same national territory as the observation unit. Data are compiled according

to the Statistical classification of economic activities in the European

Community, (NACE Rev.2, Eurostat). Industrial producer prices are compiled as

a "fixed base year Laspeyres type price-index". The current base year is 2005

(Index 2005=100). Indexes, as well as both growth rates with respect to the

previous month (M/M-1) and with respect to the corresponding month of the

previous year (M/M-12) are presented in raw form.

9.2[2009m09] 12.0[2009m09]

Harmonised unemployment - Total - Rate – SA

Short description: The unemployment rate represents unemployed

persons as a percentage of the labour force based on

International Labour Office (ILO) definition. The labour force is the

total number of people employed and unemployed. Unemployed

persons comprise persons aged 15 to 74 who: - are without work

during the reference week; - are available to start work within the

next two weeks; - and have been actively seeking work in the past

four weeks or had already found a job to start within the next three

months. Data are presented in seasonally adjusted form.

3.7[2009q02] 3.2[2009q02]

Labour cost index - Index (2000=100) - Percentage change

t/t-1 - SA Short description: Labour cost index shows the short-term development of the

total cost, on an hourly basis, for employers of employing the labour force.

The index covers all market economic activities except agriculture, forestry,

fisheries, education, health, community, social and personal service activities.

Labour costs include gross wages and salaries, employers social

contributions and taxes net of subsidies connected to employment. The

labour cost index is compiled as a "chain-linked Laspeyres cost-index" using

a common index reference period (2008=100). The index is presented in

calendar and seasonally adjusted form. Growth rates with respect to the

previous quarter (Q/Q-1) are calculated from seasonally and calendar

adjusted figures while growth rates with respect to the same quarter of the

previous year (Q/Q-4) are calculated from calendar adjusted figures.

0.2[2009q03] 1.6[2009q03]

Gross domestic product - Constant prices - Percentage

change t/t-1 - SA

Short description: Gross domestic product (GDP) at market prices

is the final result of the production activity of resident producer

units (ESA 1995, 8.89). It is defined as the value of all goods and

services produced less the value of any goods or services used in

their creation. Data are calculated as chain-linked volumes (i.e.

data at previous year's prices, linked over the years via

appropriate growth rates). Growth rates with respect to the

previous quarter (Q/Q-1) are calculated from calendar and

seasonally adjusted figures while growth rates with respect to the

same quarter of the previous year (Q/Q-4) are calculated from raw

data.

-0.1[2009q02] 3.3[2009q02]

Private final consumption expenditure - Constant prices -

Percentage change t/t-1 - SA

Short description: Final consumption expenditure consists of

expenditure incurred by resident institutional units on goods or services

that are used for the direct satisfaction of individual needs or wants or

the collective needs of members of the community. The final

consumption expenditure may take place on the domestic territory or

abroad (ESA 1995, 3.75). Private final consumption expenditure

includes households' and Non Profit Institutions Serving Households

(NPISH's) final consumption expenditure. Data are calculated as chain-

linked volumes (i.e. data at previous year's prices, linked over the years

via appropriate growth rates). Growth rates with respect to the previous

quarter (Q/Q-1) are calculated from calendar and seasonally adjusted

figures while growth rates with respect to the same quarter of the

previous year (Q/Q-4) are calculated from raw data.

EU SILC Folow up studies Combat Powerty, Ireland

Index of deprivation - Indices

Income Deprivation 25%

Employment Deprivation 25%

Health Deprivation and Disability 15%

Education, Skills and Training Deprivation 15%

Proximity to Services Deprivation 10%

Living Environment Deprivation 5%

Crime and Disorder 5%

Quality of Life Index I

The widespread index in Canada is the Quality of Life Index, which aims at providing a measure of people’s well-being.

The index covers 11 domains

household finances, employment and work, social opportunity and mobility, social stability, participation in democratic processes, education, access to health resources, leisure and recreation, housing, accessibility to services, and environmental quality.

Quality of Life Index II

The individual indicators (and their

domains) are categorised into three

broad groups

the social environment,

the economic environment and

the physical environment

Quality of Life Index III

The indicator data are compiled,

transformed and analysed to generate

three quality of life maps for each

environment, and then combined in a

fourth map to show the overall quality of

life.

The overall index uses a simple additive

form of standardised z-scores.

The Canadian Index of

Wellbeing (CIW)

An interesting new development in deprivation

indices is a broad multidimensional index

covering 8 domains:

living standards, healthy populations, community

vitality, time use, educated populace,

ecosystem health, arts and culture, and civic

engagement.

The Canadian Index of

Wellbeing (CIW) II

CIW considers a wide range of beneficial

activities as assets, and harmful ones as

deficits.

In co-operation with the European

Commission Joint Research Centre (JRC)

and the OECD.

The CIW is still under construction missing a

synthetic single index. (Combat powerty info)

Pampalon and Raymond

deprivation index

This index describes the material and social

aspects of deprivation on Statistics Canada's

dissemination area.

Material deprivation is associated with

education, employment and income, social

deprivation refers primarily to single

parenting, marital status, and living alone.

Index is related with health problems,

The New Zealand Index of

Deprivation

Combines nine census variables:

the proportion of people receiving benefits,

living in households below an income threshold,

not living in own home, single parent families,

unemployed, with low qualifications, living in

crowded condition, without access to a

telephone, and without access to a car.

The New Zealand Index of

Deprivation II

principal component analysis

The same design and construction

Series 1991, 1996, 2001, 2006

US deprivated indexes

Developed and designed as many types and versions

PC and ICT platforms

Relations with traditional scopes on urban and suburbans, conection social and health scope.

Tradition is conected with marketing segmentations, VALS and other lifestyles and dicsciplines

EU SILC Follow-up studies

European project Mutual learning on Financial inclusion – european partners

The elderly poor in the eu’s new member states, Slovakia country report - target group appliations

Czech Economic University in Prague – actual crisis application

Closing remarks

Actual criris influences and perspective

Research as diagnosis and real follow-up activities to solve problems

Social services

Consumer protection agenda

Banking and financial sectors

Regional and local community approach