HOUSEHOLD ACCOUNTS

13.30 Gross domestic product per region is the result of the productive activities of the local KAUs resident in a region. The processes of distribution and redistribution of income result in other meaningful balancing items, namely primary income and disposable income. Due to the considerations mentioned in paragraphs 13.10. – 13.14., in regional accounts these income concepts are limited to households.

13.31 Regional accounts of households are a regional specification of the corresponding accounts at the national level. For practical reasons the accounts are limited to:

1. allocation of primary income account;
2. secondary distribution of income account.

13.32 The regional household accounts are based on the households that are resident in a regional territory. For the definition of households as institutional units and for the definition of the institutional sector households, is referred to paragraphs 2.13., 2.16., 2.75. and 2.76. The number of persons that are member of the resident households add up to the total resident population of the region.

13.33 In general the rules for determining the residence of households at the national level also apply to the regional accounts of households. However, concerning the residence of students and long-term patients an exception is made when the host region is in the same country. In regional accounts, they are treated as resident of the host region if they stay there more than one year.

13.34 In the regional accounts of households, two considerations have to be made regarding households owning an unincorporated enterprise, land and/or a second dwelling in another region:

1. a household owning an unincorporated enterprise (not viewed as a quasi-corporation at the national level) in another region: the unincorporated enterprise is considered to be a resident (notional unit) in the host region. As a consequence, mixed income resulting from the compilation of aggregates by industry is part of the mixed income of the host region. However mixed income as registered in the allocation of primary income account of households per region is to be equal to total mixed income received by households resident in a region, irrespective of the region in which this income is generated;
2. a household owning land and/or a second dwelling in another region: here, the land and/or the second dwelling are also considered to be notional units resident in the host region. Consequently, the rents and rentals payable by the tenants of the land and/or the dwelling are paid to the notional unit. If the second dwelling is used by the owner for own final consumption, the rental value should be registered as an inter-regional export from the region where the dwelling is located to the region where the owner resides. The latter region thus imports this service and uses it for final consumption expenditure of households. As in the case of mixed income, the operating surplus resulting from this production process will differ from the operating surplus in the allocation of primary income accounts of households; for the total economy, both are equal.