Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group,...
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![Page 1: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/1.jpg)
Addressing cross-cutting issues for SPPI’s – 2008 Revision
Matt Berger
23rd Voorburg Group, Aguascalientes,
Mexico 2008
![Page 2: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/2.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
2
Why are we here?
• Establishing internationally comparable methodologies for service sector GDP
– “Constant dollar output of the service industries”
• Emphasis on SPPI’s, classifications and turnover surveys
– And bringing them together for service sector GDP
![Page 3: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/3.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Revision?
![Page 4: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/4.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Revision!
• Need identified at 21st Voorburg Group, Wiesbaden 2006
• Presented at 22nd Voorburg group, Seoul 2007– Discussion– Clarifications and suggested changes
• Paper updated– Presentation will focus on key issues
![Page 5: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/5.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Product versus Industry
• National accounts require product level SPPI’s
• Industry SPPI’s exist because– National statistics office historical infrastructure– Multiple uses of SPPI’s
• Deflators, upstream indicators of inflation, contracts, international comparison
• Use of industry SPPI’s not appropriate– Except under strict assumptions regarding secondary
production & quality
![Page 6: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/6.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Scope of SPPI’s
• National accounts require SPPI’s to measure all outputs of service sector– Not just business-to-business– Not just domestic sales
• Exports of services can occur even though service delivered within geographic boundaries– Non-resident purchaser
• Difficulties might arise in separately identifying export transactions– But different destination mean different products
![Page 7: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/7.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Methods based on working time
• Pricing method results in biased measures of GDP– Except for supply of personnel type services
• Arise frequently in practice because:– Model pricing too burdensome– Pricing mechanisms use working time
• Steps to mitigate bias– Only partial - bias still exists!
• Suitable only when consistent relationship between constant quality price of the service and labour inputs– Need to determine when this relationship changes
• Subcontracting!
![Page 8: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/8.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Changes to the production function
• Changes to production function might change the service– IT changes typical example
• SPPI measurement needs to identify– When change occurs– Whether products have changed
![Page 9: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/9.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Bundling
• Feature of a pricing mechanism
• Resolved via component approach– difficult in practice
• Aggregate of components may cross “product classification” lines– “Logistic solution” includes freight plus storage
• Common problem across all price indices– Work with Ottawa Group?
![Page 10: Addressing cross-cutting issues for SPPI’s – 2008 Revision Matt Berger 23 rd Voorburg Group, Aguascalientes, Mexico 2008.](https://reader036.fdocuments.in/reader036/viewer/2022083007/56649e915503460f94b961d6/html5/thumbnails/10.jpg)
Voorburg 2008 ONS - Cross Cutting Issues for SPPI's - 2008 Revision, 22-26 September 2008
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Questions?
• Thank you