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Implementation of the NACE Rev.2 in the French structural business statistics and data back-casting method

Implementation of the NACE Rev.2 in the French structural business statistics and data back-casting method. A- The French Business Register and the French Annual Business Survey. SIRENE, the French Business Register, counts :

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Implementation of the NACE Rev.2 in the French structural business statistics and data back-casting method

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  1. Implementation of the NACE Rev.2in the French structural business statisticsand data back-casting method

  2. A- The French Business Register and the French Annual Business Survey • SIRENE, the French Business Register, counts : • 2 Millions firms of the Market sector (except Financial sector) : Industry, Trade and Services • with their Main Activity code, originally declared by the firms • Each year, these Main Activity codes are updated : from the information collected by the Annual Business Survey (ABS) • The French Annual Business Survey is : • the biggest annual survey (sample = 150,000 firms) • the only survey collecting the firms’ breakdown of Turnover according to their different activities

  3. 493 = the most aggregated common activity 125 493 75 49.39 50 49.31 B- ABS : Calculation of Main Activity code from the breakdown of Turnover Main Activity code = 49.39A Activities Turnover 49.39A 40 € 49.39B 35 € 49.31Z 50 €

  4. 2008 End of the 2006 ABS 2007 Beginning of the 2006 ABS C- Implementation of the NACE Rev.2 • Turning point = January, 1st 2008 • implementation of the NACE Rev.2 in SIRENE • all Main Activity codes must be coded in Rev.2 • Preparation during the year 2007 : • The 2006 ABS especially collected in a so-called “intermediate” classification • 300,000 Main Activity codes in NACE Rev.2 directly collected by the SIRENE Register • Adjust of attribution rules from NACE Rev.1 to Rev.2 or the opposite for automatic processing

  5. D- Principle of the back-casting method • 2008, 2009, etc. : necessary works of back-casting from NACE Rev.1 to Rev.2 or the opposite • particularly, the National Accounts will need high quality back-cast series • The back-casting method : • works at the firm individual level, rather than with aggregated results • uses all available firms information • Following example : the back-casting of the 2005 ABS data (collected in NACE Rev.1) into NACE Rev.2 • breakdowns of Turnover, and then Main Activity codes

  6. E- Back-casting of breakdown of Turnover 1) Table we use to back-cast • Breakdowns of Turnover of the 2006 ABS : • Collected in the intermediate classification • Known both in NACE Rev.1 and Rev.2

  7. E- Back-casting of breakdown of Turnover 2) Two deterministic steps • 1st step : one-to-one link • Immediate back-casting when the NACE Rev.1 activity has only one link with a NACE Rev.2 activity • 2nd step : same activity declared by the same firm in the 2006 ABS (with the intermediate classification) • The same links from NACE Rev.1 to Rev.2 as observed in the 2006 ABS are applied to the 2005 ABS data • Assumption : for a particular firm, links observed in the 2006 ABS remain valid for other years

  8. E- Back-casting of breakdown of Turnover 3) Two probabilistic steps • 3rd step : some firms still have activities which are not yet back-cast => hot-deck for each of these firms • Selection of the “best donor” among the 2006 ABS firms • Activities in common with the donor : we apply the links from NACE Rev.1 to Rev.2 observed in the 2006 ABS for the donor • 4th step : some activities have not been yet back-cast => hot-deck for each of these activities • Selection of the “best donor” among the 2006 ABS activities • Back-casting by applying the links observed in the 2006 ABS for the donor

  9. E- Back-casting of breakdown of Turnover 4) Conclusion and final step • Back-casting of the 2005 ABS breakdowns of Turnover from NACE Rev.1 to Rev.2 : • Last step : determination of the Main Activity codes from the back-cast breakdowns of Turnover

  10. F- Back-casting of Main Activity codes 1) The deterministic step • Only for firms without breakdown of Turnover in the 2005 ABS • 1st step : deterministic • if NACE Rev.2 Main Activity code has been collected in 2007 by the SIRENE Register or the 2006 ABS • if NACE Rev.1 M.A. code is the same in 2007 as in the 2005 ABS • The NACE Rev.2 M.A. code collected in 2007 is the back-cast M.A. code for the 2005 ABS

  11. F- Back-casting of Main Activity codes 2) The probabilistic step • 2nd step : probabilistic • if NACE Rev.2 M.A. code has not been collected in 2007 • if Rev.1 M.A. code has changed between 2005 and 2007 • For each M.A. codes in NACE Rev.1 we have : • all possible Main Activity codes in NACE Rev.2 • the probability of each link (from the 2006 ABS and the information collected by SIRENE in 2007) • We attribute a random number to the firm • We select the NACE Rev.2 Main Activity code by comparing this random number to the probabilities of the links

  12. F- Back-casting of Main Activity codes 3) Conclusion • Back-casting of the 2005 ABS Main Activity codes from NACE Rev.1 to Rev.2 :

  13. Thank you for your attention.Questions ?

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