Implementation of the NACE Rev.2
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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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A- The French Business Register and the French Annual Business Survey

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A the french business register and the french annual business survey

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


A the french business register and the french annual business survey

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


B abs calculation of main activity code from the breakdown of turnover

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 €


C implementation of the nace rev 2

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


D principle of the back casting method

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


E back casting of breakdown of turnover 1 table we use to back cast

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


E back casting of breakdown of turnover 2 two deterministic steps

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


E back casting of breakdown of turnover 3 two probabilistic steps

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


E back casting of breakdown of turnover 4 conclusion and final step

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


F back casting of main activity codes 1 the deterministic step

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


F back casting of main activity codes 2 the probabilistic step

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


F back casting of main activity codes 3 conclusion

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 :


Thank you for your attention questions

Thank you for your attention.Questions ?


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