Non-Observed Non-Observed EconomyEconomy

Clementina Ivan-UngureanuTraining: Essential SNA: Building the basics

Addis Ababa, 13-16 February 2012

NOE

• The main objective of accounts is to offer an exhaustive description of an economy.

• Problem due to lack of coverage in NA:– For users: understanding the economy both

in terms of levels and trends– For national accountants: imbalances in the

internal consistency of accounts because some economic transactions are not measured

Why is this important?

• Comparability of GDP across countries and time

• Contributions and subsidies based on GDP

• Growth rates if Unobserved growth ≠ Observed Growth

• Economic/fiscal policy• GDP per capita, emissions, debt, deficit

% of GDP

Content

I. Definition of NOEII. Measurement methodsIII. Special issues: illegal activitiesIV. Plan for strategy implementation

I. DEFINITION

NOEResults: using simplistic assumptions, the

users understand that the GDP figures published by NSO are underestimates.

How to avoid? - Measurement program for improving

the exhaustiveness of data, with clear objectives, roles and responsibilities for national accountants and for survey statisticians,

- Proper quality management for NOE estimation

Terms used

• NOE, black economy, grey, shadow, alternate, clandestine, hidden, invisible, parallel, secondary, unofficial, informal, underground economy

often not clear what is meant negative connotation

Conceptual background• The 2008 System of National Accounts • Measuring the Non-Observed Economy,

a Handbook (2002) – jointly prepared by OECD, IMF, ILO and CIS StatCom

• Eurostat Pilot Projects on Exhaustiveness in 1998 and 2002 – Guidelines on Tabular Frameworks

• NOE in national accounts- Survey of Country Practices, UN, 2008

What is NOE• Non-observed economy (NOE) refers to all

productive activities that may not be captured in the basic data sources used for compiling national accounts.

• The following activities are included: underground, informal (including those undertaken by households for their own final use), illegal, and other activities omitted due to deficiencies in the basic data collection program.

The term ‘non-observed economy’ encompasses all of these activities and the related statistical estimation problems.

Source: Non-Observed Economy in national accounts, Survey of Country l Practices , United Nations, 2008

NOE problem areasOECD Handbook outlines 5 problem

areas:1) Underground activities2) Illegal activities3) Household Production for Own Final

Use4) Non-Observed Informal activities5) Deficiencies in Data Collection

1. Underground activities

• All legal productive activities that are deliberately concealed from public authorities to avoid:– payment of income taxes or VAT– payment of social security contributions– meeting certain legal standards e.g.

minimum wages– complying with administrative

procedures e.g filling out statistical questionnaires or other forms

2. Illegal activities

Those productive activities specifically covered by SNA production boundary that:

– generate goods and services forbidden by law (e.g. production and distribution of illegal drugs) ;

– are unlawful when carried out by unauthorized producers (e.g. unlicensed practice of medicine).

3.Production of households for own final

useProductive activities that result in goods or services consumed or capitalized by the households that produced them, such as:

– production of crops and livestock;– production of other goods for their own end

use;– construction of own houses and other own-

account fixed capital formation;– imputed rents of owner-occupiers,- services of paid domestic servants

4.Non-Observed informal activityInformal activities are:

- conducted by unincorporated enterprises- in the household sector that are

unregistered- and that have some market production.Characterised by:- a low level of organisation, - informal employment relations (e.g. oral

agreements)- little or no division between labour and

capital as factors of production, on a small scale

5. Deficiencies in data collection

a. Under-coverage of enterprises in whole or in part

- an enterprise is new and has not yet been included in the survey frameworks;

– an enterprise falls below the size cut-off for surveys;

– an enterprise has been incorrectly classified by type of activity or by region and thus improperly excluded from the survey frame;

– an enterprise has not been entered in the statistical register, regardless of its desire to be, because of the lack of efficiency of the statistical system, or due to the fact that registers are not updated, for instance.

5. Deficiencies in data collection (cont)

b. Non response by enterprises is depending on the sensitivity of the statistical system: enterprises are included in the sample but no data are collected from them and no imputation is made for the missing observations, because:

– the survey questionnaire was wrongly addressed;

– the enterprise, or part of it, did not return the questionnaire, they do not want to answer.

5. Deficiencies in data collection (cont)

c. Under-reporting by enterprises : data is obtained from enterprises, but is misreported by the respondent, or correct data is received but is inappropriately input or weighted.

Problem areas of NOE Underground activities Illegal activities Production of households for own final use Deficiencies in data collection

Observed Economy Registered/reported activities

Informal activities

Non-observed

Observed

Eurostat N1-N7 framework

• Introduced for the Pilot Projects on Exhaustiveness in 2002

• Starting point the characteristics of producers (registered or not, surveyed or not)

• Four main categories: Non-registered; Not surveyed; Misreporting; Other

Eurostat N1-N7 framework (cont)

• Defines standard set of non-exhaustiveness types (N1 to N7) and presents them in a tabular framework;

• Provides a comprehensive and systematic assessment to ensure exhaustiveness of NA;

• Facilitates cross-country comparisons of adjustments and adjustment methods and provides for similar level of coverage of NA.

I Not registeredN1 - Producer deliberately not registering –

underground: not register to avoid tax and social security obligations. Producers that do not register because they are engaged in illegal activities fall under type N2.

N2 - Producers deliberately not registering – illegal : are involved in illegal activities. Type N2 excludes illegal activities by registered legal entities or entrepreneurs that report (or misreport) their activities under legal activity codes.

N3 - Producers not required to register because it has no market output (non-market household producers that engage in production of goods for own consumption, for own fixed capital formation, and construction of and repairs to dwellings. Or, producer has some market output but it is below the level at which the producer is obliged to register as an entrepreneur

II Not surveyedN4 - Legal persons not surveyed due to several

reasons such as: the business register is out of date or updating procedures are inadequate; the classification data (activity, size or geographic codes) are incorrect; the legal person is excluded from the survey frame because its size is below a certain threshold etc.

N5 - Registered entrepreneurs not surveyed for a variety of reasons: the statistical office does not conduct a survey of registered entrepreneurs; the registered entrepreneur is not in the list of registered entrepreneurs available to the statistical office, or if available, is systematically excluded from it; the registered entrepreneur is not in the survey frame because the classification data (activity code, size code, geographic code) are incorrect.

III MisreportingN6 - Producers deliberately

misreporting in order to evade income tax, VAT, other taxes, or social security contributions.

IV. Other

N7 - Other statistical deficiencies• N7a: data that are incomplete, not

collected or not directly collectable;• N7b: data that are incorrectly handled,

processed or compiled by statisticians.Areas : non-response; production for

own final use by market producers; tips; wages and salaries in kind; and secondary activities.

Standard tablesThe Tabular Approach involves the completion of

three standard tables both for output and expenditure approaches:

1. Elements of non-exhaustiveness (detailed breakdown by type of unit, activity, non-exhaustiveness type and adjustment procedure);

2. Exhaustiveness adjustments (including the absolute and relative size of the adjustments listed above);

3. Summary of adjustments (by institutional sector and NACE activity or expenditure component).

Basis for NA Figures Adjustments Surve

ys + estimate

Administrative data

Extrapolation+ models

Other

Total

Data validation adjustments

Conceptual adjustments

Explicit exhaustiveness adjustments

Balancing adjustments

Final estimate

Production approach Output of goods and services (basic prices) 17 (NACE) Intermediate consumption (17 (NACE) Gross value added (basic prices) 17 (NACE) Taxes on products Subsidies on products Residual item GDP

Basis for NA Figures Adjustments Sur

veys + estimate

Administrative data

Extrapolation+ models

Other

Total

Data validation adjustments

Conceptual adjustments

Explicit exhaustiveness adjustments

Balancing adjustments

Final estimate

Expenditure approach Total final expenditure HFC- COICOP 2-digit NPISH f.c GGFC Gross capital formation GFCF Changes in inventories Acquisition less disposals of valuables Exports of goods and services Goods Services Imports of goods and services Goods Services Residual item GDP

All economic activities of all enterprises

Enterprises not in scope of enterprise survey or administrative source

Enterprises in scope of enterprise survey or administrative source

Non-response incorrectly handled

N7b

Response or non-response correctly handled

Enterprise reports

correctly

Enterprise under-reports

N6

Not all required data are collected

N7a

All required data are collected

Enterprise not registered

Enterprise registered

Registered entrepreneur

In register ,not

surveyed

N5b

Not in register

N5a

Legal person

In register not

surveyed

N4b

Enterprise not obliged to register

N3

Enterprise should have registered

Not in register

N4a

Illegal activities

N2

Underground activities

N1

Example

• Country specific : phenomena, legislation, the magnitude of the NOE

• Analysis of data sources and methods

• Identification the types of NOE

• Identification of all possible statistical and administrative sources

• Defining the methods to estimate

Albania

ECONOMY

Legal activities

Illegal activities

N2

Registered units Non-registered

units

Legal persons Entrepreneurs-self employed

In BR and statistical survey

In BR and NOT in statistical surveys ( administrative. data)

N4;N5

Not in BR but in administrative data

N4;N5

Reported

Incomplete data; not direct collected N7

Under reported

N6

Reported

Under reporting

N6

Reported

Under reportingN6

Is not necessary N3

To avoid to pay taxes N1

agriculture

construction

Taxi drivers

Private lessons

Rent of the house

Tips

Wages in kind

II. Measurement methods

Country Year NOE % in GDP

Country Year NOE % in GDP

New EU Members Bulgaria 2001 10.2 Poland 2002 15.7 Czech Republic

2000 6.6 Romania

2002 17

Estonia 2002 9.6 Latvia 2000 13.6 Hungary 2000 11.9 Lithuania 2002 18.9

OECD-EU Members Austria 2001 7.9 Spain 2000 11.2 Belgium 2002 4.0 Sweden 2000 1.3 Italy 2003 16.7 Netherlands 1995 1.0

OECD Non-EU Members

Australia 2000- 1.3 Mexico 2003 12.1 Norway 1995 2.4 USA 1997 0.8

CSI

Azerbaijan 2003 20.7 Armenia 2003 28.9

Georgia 2004 28.3 Belarus 2003 10.7

Kazakhstan 2003 21. 6

Moldova 2001 31.6

Russian Federation

2003 24.3 Kyrgyzstan 2003 17.0

Turkmenistan 2005 18.1 Tajikistan Not stated 25.0 Uzbekistan Not stated 30.0 Ukraine 2003 17.2

Others Albania 2003 30.8 Brazil 2003 12.79 Turkey 2004 1.66 Serbia 2003 14.56

Measurement methodsThe compilation methods for covering non-

observed activities rely on indicators. Situations:

- Coverage is often partial- Deficiencies in coverage and content- Overlap in coverage- Classifications used in various sources

may differ- Concepts and accounting rules may differ- Indicators are often by-products.- Information is partial- Information is irregular or infrequent

Measurement methods (cont)

1. Statistical methods2. Methods based on modeling

techniques

The choice of an appropriate method depends on the availability and quality of the data that can be used and the phenomenon in the country

1. Statistical methods 1.1 Direct methods based on direct surveys

(survey on expenditures, income, labor, etc)

1.2 Indirect methods

1.2.1 Supply based methods 1.2.2 Labour input methods 1.2.3 Demand based methods 1.2.4 Income based methods 1.2.5 Commodity-flow method

1.1 Direct survey- opinion survey

• Advantages:- The respondents are asking abouttheir views rather than about their own

behavior;- Senior managers and enterprises can beaddressed directly• Disadvantage: no quantitative

information that is readily useable

1.1 Direct survey- opinion survey (cont)

Example: survey by Russian Federation Centre for Economic Analysis (2000)

Type of question:• Please estimate (in ranges <5%, 6-

15%, 16- 30%, 31-50%, 51-70%, >70%) the approximate shares of unregistered receipts by: large and medium retailers; small retailers; individual entrepreneurs;

1.1Direct methods-example of survey16. Do you know persons who carry out underground activities? How many?

(Number of persons known by respondent households – total) Outside the

household Inside the household

1 Selling own agricultural production 1613 260 2 Selling other products 712 51 3 Private taxi 518 8 4 Car repair 548 7 5 Construction and repair of buildings 860 93 6 Tutoring 528 1 7 Secretary, translations 40 4 8 Catering 18 2 9 Cleaning 404 4

10 Tailoring, knitting 1130 16 11 Hair dressing 723 8 12 Cosmetic services 332 1 13 Tourism 17 - 14 House painting 1537 441 15 Baby sitting and nursing 124 7 16 Repair of home appliances 657 10 17 Other 820 69

17. Persons carrying out underground activities tend to refuse their legalisation. Which is the main reason for this? Taxes too high

relative to income

To much bureaucracy

Do not think that

legalisation is necessary

Other

Number of respondent households

1231 256 373 167

1.2 Indirect methods

1.2.1 Supply based methods1.2.2 Labour input methods1.2.3 Demand based methods1.2.4 Income based methods1.2.5 Commodity-flow method

1.2.1 Supply based methodsIs based on inputs that are used in

producing goods and services.Input/output and input/value added

ratios are used ( calculated previously based on specific survey or IOT frame).

Examples; agriculture and construction output

1.2.1 Example

Nr. CrtCalculation 2009 2010

1 Construction output 10/65% 435 4832 Import row materials 173 1903 VAT import 24 294 Tax Duties 8 95 Export 15 206 Net import raw matials2+3+4-5 190 2087 Trade margins 6*20/100 38 428 Net import 6+7 228 2509 Local construction materials 55 62

10 Total raw materials 8+9 283 31411 Other consumption 10*10% 28 3112 Total IC 10+11 311 34513 GVA 1-12 124 13814 Ratio IC/O 12/1 71 71

Indicators

1.2.2 Labor input methodThere are three basic steps:• obtain estimates of the supply of labour

input to GDP, for selected economic activity and size of enterprise, from a household labour force survey and/or other demographic sources;

• obtain estimates of output per unit of labour input and value added per unit of labour input for the same activity and size breakdown from regular or special purpose enterprise survey;

• multiply the labour input estimates by the per unit ratios to get output and value added for the activity and size categories

1.2.2 Labor input method (cont)Steps:- Collection of enterprise data- surveys

and administrative data ( use)- Collection of household data – LFS,

population census ( supply)- Comparison supply-use of labor inputs- Identification of labor missing from use

side- Compilation of O and GVA

1.2.2 Example (cont)Indicators SBS LFS DifferenceNumber of employees-total 1000 1200 200-industry 600 650 50-construction 100 175 75-sevices without government 150 215 65-other sectors 150 160 10

Data from SBSTotal economy Industry Construction

Services, without government

Other services

Turnover 1,200,000 500,000 200,000 350,000 150,000-turnover of enterprises with 1-9 employees 600,000 250,000 75,000 200,000 75,000Number of employees in entreprises with 1-9 employees 450 250 50 70 80IC total economy 701,000 350,000 130,000 150,500 70,500% IC in O 58 70 65 43 47-IC of enterprises with 1-9 employees 327,750 167,500 47,250 80,000 33,000-%IC/O 55 67 63 40 44VA 499,000 150,000 70,000 199,500 79,500-VA of enterprises with 1-9 employees 272,250 82,500 27,750 120,000 42,000Turnover/capita of enterprises with 1-9 employees 1,333 1,000 1,500 2,857 938

1.2.2 Example (cont)NOE estimation

Turnover IC VATotal economy 357,589 182,786 174,804-industry 50,000 33,500 16,500-construction 112,500 70,875 41,625-sevices without government 185,714 74,286 111,429-other sectors 9,375 4,125 5,250

Total VA 673,804%of NOE in VA 26

1.2.3 Demand based methodsProduction is estimated by using indicator data on

specific uses of goods and services.They could be -household final consumption expenditures of a certain

commodity (e.g. health and personal services), - uses of major products as raw materials (e.g.

processing of agricultural products), - exports (e.g. major export commodities), - administrative data indicating demand for a product

(e.g. motor vehicle registrations and building permits).

After a measure of output has been obtained,VA estimates can be derived using O/VA ratios, as for supply-based methods.

1.2.4 Income based methods

Some categories of income are available from administrative sources and can be used to obtain an indication of production covered by the administrative system.

They could be: - Income tax paid by self employers- Social security taxes- Turnover from VAT records

1.2.4 Example

Calculation of O, IC and GVA for units in private education activity.

• For these units there are available data from:

- financial statements ( complete balance sheets)

- Mini balance sheets( for small units)- VAT declarations- Data from social security ( wages and

number of employees)

Nace

Total units in BR

Units with balance sheets

Units with Mini balance sheets

Units with VAT declaration and without balance sheets

Units with Social Insurance declarations and without balance shhets

Total Units with data

Total units without data

(1) (2) (3) (4) (5) (6)(7)=(3)+(4)

+(5)+(6) (8)=(2)-(7)8010 200 10 30 13 77 130 708021 90 18 11 18 17 64 268022 16 5 2 2 1 10 68030 21 8 1 2 0 11 108041 408 11 55 19 136 221 1878042 206 9 27 3 83 122 84

Total 941 61 126 57 314 558 383

Privat Education

1.2.4 Example- Estimation of indicators for units with data (cont)Estimation of the indicators for the units with balance sheets

Nace4 Output IC VA % IC/O8010 219,024 146,204 72,820 0.67 8021 246,848 118,069 128,779 0.48 8022 27,307 11,803 15,504 0.43 8030 808,896 346,825 462,071 0.43 8041 23,591 9,160 14,431 0.39 8042 118576 62577 55999 0.53

Total 1,302,075 622,901 679,174 0.48

Estimation of the indicators for the units with mini balance sheets

Nace4 Output IC VADD % IC/O8010 116918 34005 82913 0.29 8021 50343 12828 37515 0.25 8022 4571 1554 3017 0.34 8030 1107 964 143 0.87 8041 178995 81214 97781 0.45 8042 94039 37443 56596 0.40

Total 445,973 168,008 277,965 0.38

1.2.4 Example- Estimation of indicators for with VAT and social contribution (cont)

Nace4 Output IC VA %IC/08010 391,891 118,907 292,985 0.30 8021 158,368 69,979 66,389 0.44 8022 475,166 194,329 180,837 0.41 8030 107,178 47,954 61,224 0.45 8041 20,850 8,624 14,225 0.41 8042 6,417 3,153 565 0.49

Total 1,159,870 442,946 616,224 0.38

Nace4 Output IC VA8010 108,191 37,017 58,174 0.34 8021 44,926 20,583 18,343 0.46 8022 1,442 652 726 0.45 8030 - - - 8041 279,106 108,100 107,006 0.39 8042 85,092 39,068 29,024 0.46

Total 518,757 205,421 213,273 0.40

Units with Social contributions

Units with VAT

1.2.4 Example- Estimation of indicators for with VAT and social

contribution (cont)• For the units with VAT declarations, the IC

was calculated based on the declared turnover and the ratio IC/O of similar units with balance sheets and mini-balance sheets ( as main activity, size, region).

• For the units with social security declarations, the VA was estimated based on the ratio of wages in VA from the similar units; the other indicators were estimated based on the same assumptions as for VAT.

1.2.4 Example- Estimation of indicators for missing units (cont)

Nace4 Output IC VA8010 290,165 83,685 206,480 0.29 8021 140,949 62,152 70,797 0.44 8022 374,977 161,177 143,800 0.43 8030 250,140 107,384 142,756 0.43 8041 403,599 172,627 181,972 0.43 8042 242,658 101,224 109,434 0.42

Total 1,702,489 688,250 855,239 0.40

Missing Units

1.2.4 Example-Estimation of indicators for missing units (cont)

• The indicators were estimated based on the data from similar units ( as activity, size and region) with balance sheets and mini balance sheets.

1.2.5 Commodity flow methods

Involves balancing total supplies and uses of individual products.

It is used to estimate the output or an expenditure element by balancing the supply and use of that commodity, based on the following equation:

output = the sum of all intermediate consumption, final consumption, changes (positive or negative) in inventories, GFCF and exports minus imports

1.2.5 Commodity flow methods (cont)

Example of the use :- Estimation of the trade output- Estimation of the GFCF in

construction- Estimation of the hotel and

restaurant output

2. Macro-model methods

• produce and estimate of NOE based on one single model– monetary methods – based on stocks or flows

of money;– global indicator methods, e.g. electricity

consumption– latent variable methods – two groups of

variables: one determining the size and the other the evidence of missing activities

• not recommended to use for measuring NOE - declaration by ISWGNA (signed by UN, Eurostat, OECD, IMF, World Bank)

2. Macro-model methods (cont)

They tend to produce spectacularly high measures, which attract much attention from politicians and newspapers.

It is often, but entirely wrongly, conjectured that the difference between these macro-model results and the official estimates of GDP is non-measured production

2. Macro-model methods (cont)

Main types of macro-models methods:

2.1. Monetary methods, which assume that the non-measured production can be modelled in terms of stocks or flows of money.

2.2.Global indicator methods, in which non-measured production is modelled in terms of a single variable (usually a physical indicator) with which it is believed to be highly correlated, electricity consumption being the most commonly used.

2. Macro-model methods (cont)• 2.3.Latent variable methods, in which

modeling is in terms of two groups of variables, one group that is assumed to determine the size and growth of non-measured production and a second group that provides the “trace” (i.e., evidence) of the missing activities

Concluding remarks for macro-model methods

Unsuitable for compiling NA because– activities not precisely defined– underlying assumptions too simplistic– results not stable – change in assumptions

produces different results– many models that give different results– provide only global estimate for GDP, not by

industry– results can not be combined with other

measurements based on data

Concluding remarks for macro-model methods

(cont)– provide only global estimate for GDP, not by industry

– results can not be combined with other measurements based on data

– lack of transparency in describing the procedures used to compile the national accounts is the main reason why outsiders resort to macro-models and produce estimates that undermine the credibility of the national accounts

Other issues

1. Illegal activitiesGeneral types of illegal production:• production and distribution of illegal goods, such as banned

drugs or pornographic material;• illegal services, such as prostitution (in countries where

this is illegal);• production activities which are usually legal but which

become illegal when carried out by unauthorised producers, such as unlicensed medical practices, unlicensed gambling activities, unlicensed production of alcohol;illegal fishing, hunting, tree cutting;

• production and sale of counterfeited products, such as watches and other products

• smuggling, in particular of tobacco, weapons, alcohol, food, people, both wholesale and retail;

• fencing (resale) of stolen goods;• bribery;• money laundering.

1.Illegal activities- Measurement methods

• By their nature, illegal activities are very difficult to measure

• Illegal activities are not included in the conventional data sources used in compiling the national accounts;

• The most useful approach:- basic national accounting identity: supply

and uses of goods and services (domestic output plus imports)

- Direct estimations based on direct specific data sources

1. Illegal activities-Measurement methods

(cont)For any given illegal activity, data should be collected, as far as possible independently, on each of the three angles: supply, use and generated income

Main sources :- Provided by police- Provided by health institutions, - Provided by NGOs- Special surveys

1. Illegal activities- Examples: Drugs

• Sources:- Police - Health institutions- NGOs with activity in this field- Special studies by universities

1. Illegal activities- Examples: Drugs (cont)

• The output is estimated based on the number of consumers and the price street( by categories of drugs)

• Assumptions have to be made on the value of IC. Assuming that drugs dealers take care of their own transport, IC is rather low in the case of trade in drugs. A higher share of IC has to be assumed in the case of drugs production itself. Often, technical coefficients are available for this purpose.

1. Illegal activities- Examples: Prostitution

The total supply of prostitution services comprises services produced domestically by residents and by non-residents and imported services, i.e., prostitution services purchased by residents travelling abroad.

Main data sources:-data from from health care organisations,- data from police police - Data fror prostitutes’ associations;- Different university studiees

1. Illegal activities Examples: Prostitution (cont)

• Output= number of persons x average number of clients x average price

• A breakdown into different kinds of prostitutes (call girls, prostitutes in nightclubs, “window” prostitutes, prostitutes in massage parlours, escort services, heroin prostitutes, etc.) is suitable to be done.

II Other elements• Value of private lessons: number of

students, number of lessons in a month, value of the lesson

• Rent of houses in holiday period: number of tourists, kind of accommodation, price per night

• Taxi activities: special survey• Tips : a fixed % of the restaurant turnover

Questionnaire for estimation of GVA for corporate units (taxi driver)

Business name Municipality Business number________________________

N

umbe

r

Description Measurement unit Value

1 Average number of cars used per month

number

2 Average travel expenses per month

Euro

3 Km spent per month Km.

4 Average number of employees per month as taxi drivers

number

5 Average salary of employees ( taxi drivers) per month

Euro

Date: ________________ Contact person: Name and surname Telephone____________________ : Interviewer: Name and surname Telephone___________________

Questionnaire for estimation of GVA for unincorporated units (taxi companies) Business name Municipality _________________

Business number__________________________

Num

ber

Description Measurement

unit Value

1 Travel expenses during a week

euro

2 Characteristics of the car (does he use diesel or gas)

name

3 Expenses (litter per 100 km) litter

4 Km spent per week km

5 Average number of customers per week

number

6 Average income receive by customer

euro

Date: __________________ Contact person: Name and surname__________________________________________________ Telephone: ___________________ Interviewer: Name and surname__________________________________________________ Telephone: ___________________

Strategy implementation

General problem of NOE measurement

• Lack of consultation with major external users

• Inadequate statement of objectives• Inadequate statement of

responsibilities• Narrow focus• Lack of integration of data

Strategy for NOE measurement

Five lines of action:1.Identify an appropriate conceptual and

analytical framework on the basis of which the NOE can be assessed.

2. Assess the basic data and the compilation methods, identifying the extent of non-observed and non-measured activities and establishing priorities for dealing with them, both in the immediate future and the longer term

Strategy for NOE measurement (cont)

3. Identify potential improvements in the national accounts compilation process that will reduce the incidence of non-measured activities.

4. Identify potential improvements in the infrastructure and content of the basic data collection programme.

5. Develop an implementation plan

Elements of a NOE strategy

Comprehensive programme of users consultation on their needs and priorities;

Set of clear, realistic, broad objectives indicating what to achieve in terms of NOE;

A well defined conceptual and analytical framework appropriate for NOE measurement;

Assessment of the sources and outputs of the and the national accounts compilation procedures;

Elements of a NOE strategy (cont)

A prioritized set of possible short and long term initiatives for improving the statistical infrastructure and outputs of the existing basic data collection programme;

Implementation plan providing clear targets, milestones and an allocation of resources;

Data revision strategy for preventing breaks in macro-economic data outputs resulting from NOE related improvements;

Implementation stepsSteps:

• Formulation of aims and consultation with internal and external users

• Selection of an analytical framework• Assessment of the NA and basic data

collection programme• Identification and prioritisation of NOE

improvement initiatives