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INSTITUTIONAL UNITS - ESA

Statistics Directorate    
Definition:
The institutional unit is an elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function. A resident unit is regarded as constituting an institutional unit if it has decision-making autonomy in respect of its principal function and either keeps a complete set of accounts or it would be possible and meaningful, from both an economic and legal viewpoint, to compile a complete set of accounts if they were required.

Context:
The need for aggregation means that it is impossible to consider individual institutional units separately; they must be combined into groups called institutional sectors or simply sectors, some of which are divided into sub-sectors (Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996, 2.12).

Criteria for assessing ‘similar type of economic behaviour’ are:

— type of producer;
— private and public market producers;
— private producers for own final use;
— private and public other non-market producers;
— principal activity and function.

The ESA distinguishes between the following institutional sectors:

— Non-financial corporations;
— Financial corporations;
— General government;
— Households (as consumers or entrepreneurs);
— Non-profit institutions serving households;
— Rest of the world

The System of National Accounts 1993 states that "Institutional units are grouped together to form institutional sectors, on the basis of their principal functions, behaviour, and objectives". (United Nations, "System of National Account (SNA) 1993", par. 2.20).

Source Publication:
Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996, 2.12.

Cross References:
Sector, institutional - ESA
Units, institutional – SNA

Version Indicator: ESA

Statistical Theme: National accounts

Glossary Output Segments:
SDMX

Created on Tuesday, September 25, 2001

Last updated on Monday, January 02, 2006