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27 th Voorburg Group Meeting Warsaw, Poland Operational Efficiency Strategies Session

27 th Voorburg Group Meeting Warsaw, Poland Operational Efficiency Strategies Session (Survey Design Considerations for Supporting Industry-by-Product Estimates for the Service Annual Survey). presented by Mark E. Wallace Chief, Service Sector Statistics Division U.S. Census Bureau

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27 th Voorburg Group Meeting Warsaw, Poland Operational Efficiency Strategies Session

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  1. 27th Voorburg Group Meeting Warsaw, Poland Operational Efficiency Strategies Session (Survey Design Considerations for Supporting Industry-by-Product Estimates for the Service Annual Survey) presented by Mark E. Wallace Chief, Service Sector Statistics Division U.S. Census Bureau mark.e.wallace@census.gov October 1–5, 2012

  2. Agenda • Introduction, Background, and Challenge • Meeting the Challenge - 3 Different Phases • Outcome • Conclusion and Next Steps • Questions

  3. Introduction, Background, and Challenge • Requests for industry-by-product detail for service industries since the 1980s, primarily from the Bureau of Economic Analysis (BEA) • The 2007 Economic Census included the first-time collection of a rich variety of service industry-by-product detail • Expansion of industry coverage in the SAS (began for 2009 and expanded industry-by-product coverage began for 2011) • Pre-expansion and Post-expansion service industries in the Service Annual Survey

  4. Pre-Expansion and Post-Expansion Service Industries in the Service Annual Survey

  5. Pre-Expansion and Post-Expansion Service Industries in the Service Annual Survey (continued) Total of Pre-expansion NAICS (30% of GDP) and Post-expansion NAICS (25% of GDP) = 55% of GDP

  6. Introduction, Background, and Challenge (continued) • It was necessary for the Census Bureau and BEA to determine priorities for specific industry-by-product combinations due to the availability of limited resources • Sample selection for prior SAS samples (e.g., 2000, 2006) did not account for industry-by-product combinations, resulting in: • High CVs • High imputation rates • 2007 Economic Census included 2,000 new products across more than 350 service industries and would serve as important input into developing potentially collectable and publishable industry-by-product combinations for the 2011 SAS onward • Funding for current service expansion received in 2009 made it possible to carry out the expansion • New sample for SAS selected for 2011 data year, with work beginning in 2009

  7. Introduction, Background, & Challenge (continued) • Design a sample that will meet target CVs • For the first time use product CVs in the sample design • Design a sample for products & industries never collected in the SAS • Limit sample size to approximately 70,000 units to accommodate resource and funding constraints

  8. Meeting the Challenge3 Distinct Phases Phase 1: Working with BEA to get initial list of industry-by-product priorities prior to feasibility research Phase 2: Researching the feasibility of BEA’s industry-by-product priorities Phase 3: Working with BEA to get a final list of industry-by-product priorities

  9. Meeting the Challenge (continued)Phase 1-Working with BEA to Get Initial List of Industry-by-Product Priorities Prior to Feasibility Research • Obtaining a list of industry-by-product combinations BEA was requesting for the pre-expansion industries and for the post-expansion industries • Initially, obtained additional industry-by-product combinations without identifying any existing industry-by-product combinations that could be eliminated from the SAS forms (due to non-reportability, high coefficients of variation, high imputation rates, or lack of economic significance-not enough companies could report a specific product) • Begin focus on pre-expansion industry-by-product combinations, and determine whether they would require additional sampling units (for those that had CVs higher than 20%) • See Attachment B of paper for the industry-by-product combinations identified during Phase 1 for the pre-expansion industries, along with an indication of whether they would require additional sampling units

  10. Excerpt of Attachment B from Paper: Industry-by-Product Combinations Identified During Phase 1 for NAICS 51721, Wireless Telecommunications Carriers (except Satellite)

  11. Meeting the ChallengePhase 2 – Researching the Feasibility of BEA’s Industry-by-Product Priorities • Researching reportabilityof products for pre-expansion industries (e.g., contacting companies for record keeping and reporting practices • Using industry-by-product data from the Economic Census • Using prior (2005-2008) SAS estimates for pre-expansion industries • See Attachment C of paper for the industry-by-product combinations previously identified by BEA in Phase 1 (see Attachment B) that were subsequently designated to be dropped • Examining products for post-expansion industries • See Attachment D of paper for industry-by-product combinations that could be added for post-expansion industries without requiring additional sampling units

  12. Meeting the ChallengePhase 3 – Working with BEA to Get a Final List of Industry-by-Product Priorities • Discuss results of Phase 1 and Phase 2 with BEA • Present “Cost” of pre-expansion industry-by-product combinations where sample size would need to increase • Provide a mechanism for BEA to prioritize industry-by-product combinations to be included in the Service Annual Survey • See Attachment E of paper for the spreadsheet tool provided to BEA by the Census Bureau for prioritizing industry-by-product combinations to be included in the Service Annual Survey

  13. Phase 3 - Mechanism for BEA Making Selections

  14. Outcome • BEA’s choices resulted in being 1150 sampling units under budget • Extra available sampling units allowed us to expand the sample size for a few health industries, resulting in the Center for Medicare and Medicaid Studies receiving estimates of source of funding for additional industries

  15. Conclusion and Next Steps • The 2012 Business Sample Revision achieved its goal of considering industry-by-product combinations in the design of the SAS sample • A carefully planned and implemented three-phase approach produced an outcome that maximized the usefulness of SAS industry-by-product data for BEA, while maintaining sustainable workload and resource levels • Next steps will be to: • Evaluate the results of the 2011 SAS • For expansion industries, determine what possible additional industry level estimates to provide to BEA • Make necessary adjustments to future SAS forms based on: • Ongoing BEA needs • Reporting issues • Consistency with the Economic Census products • Sample size & burden considerations • Research how to incorporate the 2012 Economic Census results into future sample designs

  16. Questions

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