Non-market services : Non-market services : Overview of Eurostat and OECD Overview of Eurostat and OECD

activitiesactivities

Paul Konijn, EurostatPaul Konijn, EurostatAlain Gallais, OECDAlain Gallais, OECD

London, 3-5 October 2006London, 3-5 October 2006

National accounts developmentsNational accounts developments

1998: Eurostat Task Forces on health, 1998: Eurostat Task Forces on health, education and collective services:education and collective services:

current (input) methods do not allow for changes in current (input) methods do not allow for changes in productivity –> impact on GDP volume measuresproductivity –> impact on GDP volume measures

Volume measures regained interest due to Volume measures regained interest due to increased importance for economic and increased importance for economic and monetary policymonetary policy

National accounts developments (2)National accounts developments (2)

2001: Eurostat Handbook on Price and Volume 2001: Eurostat Handbook on Price and Volume Measures: preference for output methods for Measures: preference for output methods for non-market services, in line with SNA93 and non-market services, in line with SNA93 and ESA95ESA95

2002: Commission Decision 2002/990 – remove 2002: Commission Decision 2002/990 – remove input methods for health and education by 2006input methods for health and education by 2006

See presentations in sessions 2 and 5 on current See presentations in sessions 2 and 5 on current state of implementation in EU and projects in state of implementation in EU and projects in OECD countriesOECD countries

EducationEducation

Handbook defines output as Handbook defines output as quantityquantity of of teaching received by students, adjusted for teaching received by students, adjusted for qualityquality, for each type of education, for each type of education

ProposedProposed quantity quantity measure: numbers of measure: numbers of pupil-hours or pupilspupil-hours or pupils

HealthHealth

Handbook defines output as Handbook defines output as quantityquantity of of health care received by patients, adjusted health care received by patients, adjusted for for qualityquality, for each type of health care, for each type of health care

ProposedProposed quantity quantity measure: numbers of measure: numbers of complete treatmentscomplete treatments

Collective servicesCollective services

No obligation to remove input methodsNo obligation to remove input methods

International comparisonsInternational comparisons

Eurostat-OECD Purchasing Power Parities Eurostat-OECD Purchasing Power Parities (PPP) program: input methods are used for (PPP) program: input methods are used for all non-market servicesall non-market services

Salaries of civil servants are compared Salaries of civil servants are compared across countries -> assumption of equal across countries -> assumption of equal productivityproductivity

Project of better taking into account skill Project of better taking into account skill levels and consistency with national levels and consistency with national accountsaccounts

International comparisons (2)International comparisons (2)

Eurostat-OECD Task Force on non market Eurostat-OECD Task Force on non market services, composed of NA and PPP experts, is services, composed of NA and PPP experts, is now investigating use of output methods for now investigating use of output methods for comparisons of education and health servicescomparisons of education and health services

Can the same concepts applied in the NA also Can the same concepts applied in the NA also be applied to PPPs?be applied to PPPs?

Recommendations expected in 2007Recommendations expected in 2007

Education and health, international,Education and health, international,ideas for output methodsideas for output methods

EducationEducation– international databases of pupil/student numbers international databases of pupil/student numbers

availableavailable– Looking at PISA and similar studies for possible Looking at PISA and similar studies for possible

quality adjustments, outcome-based.quality adjustments, outcome-based.

HealthHealth– Large differences in health systems and data Large differences in health systems and data

availability. Several possibilities, still to explore.availability. Several possibilities, still to explore.

Consider market and non-market output Consider market and non-market output together?together?

OECD non market projectOECD non market project To develop To develop more detailed international guidelines more detailed international guidelines

for the development of volume measures of non-for the development of volume measures of non-market output, both temporal and spatial, in market output, both temporal and spatial, in particular for education and health, fparticular for education and health, from April rom April 2006 to September 20072006 to September 2007

2 workshops : London, October 2006 and Paris, 2 workshops : London, October 2006 and Paris, June 2007June 2007

an OECD Statistical Manual to be published at end an OECD Statistical Manual to be published at end 20072007

Contribution to PPP-NA Task Force on non market Contribution to PPP-NA Task Force on non market services and to upcoming health-specific PPP Task services and to upcoming health-specific PPP Task ForceForce

OECD Health-specific PPP projectOECD Health-specific PPP project

Would take over from present NA-PPP Task Would take over from present NA-PPP Task Force on non market services at the beginning Force on non market services at the beginning of 2007. Eurostat would be closely associated. of 2007. Eurostat would be closely associated. More health experts.More health experts.

two purposes:two purposes:- (i) provide a tool for the analysis of the volume of health - (i) provide a tool for the analysis of the volume of health expenditure in OECD and EU countries. This objective is expenditure in OECD and EU countries. This objective is complementary to other data projects in the field of health complementary to other data projects in the field of health accounts with a view to improving the information base for accounts with a view to improving the information base for health policy makers;health policy makers;- (ii) provide input to the broader purpose of deriving - (ii) provide input to the broader purpose of deriving economy-wide PPPs for international comparisons of volume economy-wide PPPs for international comparisons of volume GDP GDP