Úr þjóðarbúskapnum - 01.12.1961, Page 69

CONSUMERS’ EXPENDITURE
reports and reports of trade unions and pri-
vate organisations.
Gifts received from abroad are not regis-
tered in statistics and no estimate is offered
here.
Consumers’ Expenditure abroad has been
calculated from Balance of Payments reports
of the National Bank, less an estimate for
business purposes, plus an estimate for cur-
rency obtained privately.
Expenditure of Non-residents and of Tou-
rists was estimated in accordance with a sample
taken from the Aliens’ Department of the
Police, showing nationality and length of stay
in Iceland in 1957. Expenses per day were
estimated by the State Tourist Office and
private travel agencies. Reports were received
from the organisation of trawler owners on
the number of Faeroese fishennen emploved
in Iceland. The total of foreign currency sold
to the banks was compared with the estimated
expenditure of tourists and the difference
assumed to have been sold privately.
General Remark.
The following should be borne in mind:
(A) The estimates of Consumers’ Expendi-
ture as offered here, are not entirely
comparable with those of other coun-
tries in two main points:
(1) Cost of Housing.
In most countries, where rents are con-
trolled, these lower legal rents can be
used and imputed rent is based on
lower legal rents for older property. The
cost of housing is therefore deemed to
be considerably lower abroad.
(2) Health Care and Old Age Pensions.
In countries where health and old age
insurance are compulsory, it is custom-
ary to treat premiums in the same
way as direct taxes. Payments by the
Statc Health Insurance for medicine etc.
are treated as transfer payments from
the public to the private sector. Though
health and okl age pension insurance
are compulsory in Iceland, premiums
are treated as Consumers’ Expenditure,
but expenses by the Health Insurance
were not treated as transfer payments.
(B) The estimated Consumers’ Expenditure
cannot be fitted into a fully fledged
System of National Accounts without
adjustments in other sectors of expendi-
ture,, or in the framework of National
Income accounting. However, as the
estimate of Consumers’ Expenditure is
size right, it points to the size of cor-
rections needed in National Income
computations.
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