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Non-market services : Overview of Eurostat and OECD activities

Non-market services : Overview of Eurostat and OECD activities. Paul Konijn, Eurostat Alain Gallais, OECD London, 3-5 October 2006. National accounts developments. 1998: Eurostat Task Forces on health, education and collective services:

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Non-market services : Overview of Eurostat and OECD activities

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  1. Non-market services : Overview of Eurostat and OECD activities Paul Konijn, EurostatAlain Gallais, OECD London, 3-5 October 2006

  2. National accounts developments • 1998: Eurostat Task Forces on health, education and collective services: current (input) methods do not allow for changes in productivity –> impact on GDP volume measures • Volume measures regained interest due to increased importance for economic and monetary policy

  3. National accounts developments (2) • 2001: Eurostat Handbook on Price and Volume Measures: preference for output methods for non-market services, in line with SNA93 and ESA95 • 2002: Commission Decision 2002/990 – remove input methods for health and education by 2006 • See presentations in sessions 2 and 5 on current state of implementation in EU and projects in OECD countries

  4. Education • Handbook defines output as quantity of teaching received by students, adjusted for quality, for each type of education • Proposed quantity measure: numbers of pupil-hours or pupils

  5. Health • Handbook defines output as quantity of health care received by patients, adjusted for quality, for each type of health care • Proposed quantity measure: numbers of complete treatments

  6. Collective services • No obligation to remove input methods

  7. International comparisons • Eurostat-OECD Purchasing Power Parities (PPP) program: input methods are used for all non-market services • Salaries of civil servants are compared across countries -> assumption of equal productivity • Project of better taking into account skill levels and consistency with national accounts

  8. International comparisons (2) • Eurostat-OECD Task Force on non market services, composed of NA and PPP experts, is now investigating use of output methods for comparisons of education and health services • Can the same concepts applied in the NA also be applied to PPPs? • Recommendations expected in 2007

  9. Education and health, international,ideas for output methods • Education • international databases of pupil/student numbers available • Looking at PISA and similar studies for possible quality adjustments, outcome-based. • Health • Large differences in health systems and data availability. Several possibilities, still to explore. • Consider market and non-market output together?

  10. OECD non market project • To develop more detailed international guidelines for the development of volume measures of non-market output, both temporal and spatial, in particular for education and health, from April 2006 to September 2007 • 2 workshops : London, October 2006 and Paris, June 2007 • an OECD Statistical Manual to be published at end 2007 • Contribution to PPP-NA Task Force on non market services and to upcoming health-specific PPP Task Force

  11. OECD Health-specific PPP project • Would take over from present NA-PPP Task Force on non market services at the beginning of 2007. Eurostat would be closely associated. More health experts. • two purposes: - (i) provide a tool for the analysis of the volume of health expenditure in OECD and EU countries. This objective is complementary to other data projects in the field of health accounts with a view to improving the information base for health policy makers; - (ii) provide input to the broader purpose of deriving economy-wide PPPs for international comparisons of volume GDP

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