Definition: Final consumption

Category: Living conditions

If we add to the final consumption expenditure of the households the value of the social transfers effected in kind by the administrations and the non-profit institutions serving the households, the households' actual final consumption is obtained. Transfers of this type correspond to the imputed goods and social services provided to the households, primarily in the fields of health, education and other social aid services. These goods and services are regarded as individual services, which differentiates them from collective services such as those relating to environmental protection, security, defence policy etc.