Transcript Second Workshop on the Measurement of Volume Health and

Measuring Education and Health
volume output
Introduction
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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Education and Health
OECD average = 10.9% of Total VA
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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Strong Impact on Comparability of Growth
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Not intermediate consumption: differences in
statistical methods impact directly GDP
1% difference in the output volume growth of
education and health => 0.1% impact on annual GDP
growth
The UK estimated that 0.5 point in growth differential
with the USA could be due to different statistical
methods for education, health and other government
services
=> essential for OECD to ensure that methods are
comparable
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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OECD Project
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Started in 2005
Builds on previous work: Eurostat Handbook on
Volume and Prices, Atkinson Report, country
experiences
Cooperation with the UKCeMGA and Eurostat
Financed partly by INSEE (France), Government of
Norway
Objective: OECD Handbook on the Measurement
of Volume Health and Education Output
Timing: End
2008
2 workshop “Measuring Education and Health volume output”
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Paris
6-7 June 2007
nd
François LEQUILLER, OECD/STD/NAFS
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An old issue: what is new?
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An old issue in national accounts: costs and « input
methods »
Richard Stone skeptical of « output methods »
because of lack of quality adjustment
Output was supposed to increase productivity: it
decreased productivity !
It is possible to improve the measurement
Governments want to measure the change in the
productivity of its inputs: value for money
Performance indicators/Quality of public service
National accounts have the same global objective
How?
Synergy!
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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A transversal OECD project
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Project Limited to Education and Health
Why? This is where the OECD has already
specialised networks
– Network of education experts
– Network of health experts
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Both networks have strong interest in measuring
appropriate volume output.
Papers presented in this workshop originate:
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From the Statistics Directorate
From the Health Division
From the Education Directorate
From the Economics Department
And will be discussed in the specialised networks
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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A transversal OECD project
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All these networks have the same objective:
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Measure aggregate volume (and price) of education and
health expenditures taking account of the quality of the
service
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Only experts and education and health can propose adequate
quality adjustments.
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If a technical solution is rejected by specialised experts…it
should be rejected by national accountants
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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Non market or Market?
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Main focus was traditionally « non market »
The measurement of market services is easier?
True but not so…true
Quality adjustment are needed also for the market
services
The measurement of market and non market
should follow the same principles
Handbook is not limited to the non market sector
Global solution applicable to both market and non
market
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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Time series or spatial comparisons?
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Countries interested in productivity changes (time
series)
OECD interested in comparing productivity changes
between countries
But countries and OECD also interested in comparing
the level of GDP per country (spatial comparisons 
PPPs)
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PPPs: currently « input based »
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Objective: Calculate output based PPPs for health
and education.
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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Time series and spatial comparisons
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The conceptual backround for time series and PPPs
is exactly the same
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Handbook covers both time series and PPPs
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Important objective: compile appropriate PPPs to be
used by health and education experts to deflate
health and education expenditures
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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Workshop
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Is organised alongside the Draft Chapters of the
future Handbook
– Session 1 = Chapter 1 : Terminology and concepts
– Session 2 = Chapter 2 part 1: Education : concepts and
spatial comparisons
– Session 3 = Chapter 2 part 2: Education : time series and
best practices
– Session 4 = Chapter 3 part 1: Health: concepts and time
series
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Objective: collect your comments on first draft
Discuss best pratices with contributions from experts
Session 5: Round Table for provisional conclusions
First meeting of OECD/Eurostat task force on health
PPPs: 8 June, same room
Paris
6-7 June 2007
2nd workshop “Measuring Education and Health volume output”
François LEQUILLER, OECD/STD/NAFS
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