Transcript Addressing cross-cutting issues for SPPI`s

Addressing cross-cutting issues for
SPPI’s – 2008 Revision
Matt Berger
23rd Voorburg Group, Aguascalientes,
Mexico 2008
Why are we here?
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Establishing internationally comparable
methodologies for service sector GDP
– “Constant dollar output of the service
industries”
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Emphasis on SPPI’s, classifications and
turnover surveys
– And bringing them together for service sector
GDP
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26
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Revision?
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26
September 2008
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Revision!
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Need identified at 21st Voorburg Group,
Wiesbaden 2006
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Presented at 22nd Voorburg group,
Seoul 2007
– Discussion
– Clarifications and suggested changes
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Paper updated
– Presentation will focus on key issues
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Product versus Industry
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National accounts require product level SPPI’s
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Industry SPPI’s exist because
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National statistics office historical infrastructure
Multiple uses of SPPI’s
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Deflators, upstream indicators of inflation, contracts,
international comparison
Use of industry SPPI’s not appropriate
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Except under strict assumptions regarding secondary
production & quality
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Scope of SPPI’s
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National accounts require SPPI’s to measure all
outputs of service sector
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–
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Exports of services can occur even though service
delivered within geographic boundaries
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Not just business-to-business
Not just domestic sales
Non-resident purchaser
Difficulties might arise in separately identifying
export transactions
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But different destination mean different products
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Methods based on working time
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Pricing method results in biased measures of GDP
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Arise frequently in practice because:
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Only partial - bias still exists!
Suitable only when consistent relationship between constant
quality price of the service and labour inputs
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Model pricing too burdensome
Pricing mechanisms use working time
Steps to mitigate bias
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Except for supply of personnel type services
Need to determine when this relationship changes
Subcontracting!
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Changes to the production function
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Changes to production function might
change the service
– IT changes typical example
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SPPI measurement needs to identify
– When change occurs
– Whether products have changed
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Bundling
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Feature of a pricing mechanism
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Resolved via component approach
– difficult in practice
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Aggregate of components may cross
“product classification” lines
– “Logistic solution” includes freight plus storage
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Common problem across all price indices
– Work with Ottawa Group?
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September 2008
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Questions?
• Thank you
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September 2008
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