Joint OECD/Eurostat Task Force for the revision of the SPPI Guide

27th meeting of the Voorburg Group on Service

StatisticsGUS, Warsaw, 3 October

2012Anne-Sophie Fraisse (OECD) & Thomas Jaegers (Eurostat)

Overview

1. The joint OECD / Eurostat Task Force for the revision of the SPPI Guide

2. Revision of the methodological chapters

3. Guidelines on compilation of SPPIs for specific service industries: revision & enlargement of the scope

4. Work-plan & timeline 2

The joint OECD / Eurostat Task Force for the revision of the SPPI Guide

3

Task Force Members

14 OECD / EU countries

• Australia• Canada• Israel• Japan• Korea• Mexico• United-States

• Austria• France• Germany• Hungary• Netherlands• Poland• United-Kingdom

4

Objectives

• Take into account new developments in service industries (e.g. new contracts forms, new pricing mechanisms)

• Share experiences with SPPI• Review methodological chapters (e.g

pricing methods, practical aspects of development process)

• Alignment of chapters to ISIC rev. 4 / NACE rev. 2

• Enlarge the scope of industries• Work in synergy with the Voorburg Group

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Ongoing work

1. Methodological chapters Chapter 1 - General aspects of SPPI

compilation Chapter 2 – Pricing methods Chapter 3 – Practical aspects of the

development process

2. Guidelines on compilation of SPPIs for specific service industries

6

Revision of the methodological chapters

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Chapter 1- General aspects of SPPI compilation

1. Enlargement of the scope Sub-division of an SPPI by destination

of output is strongly encouraged when relevant

2. Treatment of outsourcing As for sub-contracts, outsourcing

services should be treated in an index in the same way as any other services

3. Introduction of 2008 SNA

Chapter 2 - Pricing methods

• Development of a new category: Margin pricing (Wholesale & retail

trade, FISIM)

• Modification of description of existing pricing methodsUse of CPI as proxiesData type in the survey (Voorburg Group

input)

ENLARGEMENT OF THE CLASSIFICATION

Classification of pricing methods

Real transaction price

List price

Real transaction price

Revenues &

amount sold

% fee & related value

Sub-components: Real transaction price, List price,

Revenues & amount sold,

Input data

Explicit output charged mechanism

Expert estimate

Real transaction

priceList price

Unit value

Time-spent mechanism

Margin pricing

Acquisition & selling

prices

Direct use of prices

Contract pricing

Unit value

%

fee

Component pricing

Model pricing

Time based

Margin pricing

Price observed

Price estimated using related

observed prices

Price virtual

Price observed or estimated

Price indirectly observed

Price of final service output Time based price

Margin price

3 classes of pricing methods (1/2)

Based on the link between pricing mechanisms and results of pricing

methods1. Pricing methods result in price of final

service output and refer to explicit output charged mechanisms as pricing mechanisms

Includes 6 pricing methods Add use of CPI data as a special case of Direct

use of prices of repeated services

2. Pricing methods result to time based price and refer to time spent mechanism as pricing mechanism

3 classes of pricing methods (2/2)

3. Pricing method results to margin price and refer to margin pricing as pricing mechanism

Margin price implicitly charged by wholesalers & retailers

Margin price implicitly charged by financial intermediaries

Guidelines on compilation of SPPIs for specific service industries: revision & enlargement of the scope

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Revision of the existing guidelines (1/2)

19 service industries were covered by the 1st edition of the SPPI Guide

4 service industry sections have been revised extensively:

Sea and coastal water transport Air transport*TelecommunicationComputer programming, consultancy and related

activities

* Available for comment14

Revision of the existing guidelines (2/2)

15 Service industry sections have been enhanced with the material from the Voorburg Group: Freight transport by road

(AUT)* Warehousing and storage

(AUS)* Cargo handling (AUS)* Post and courier activities

(FRA, HUN)* Real estate activities with own

or leased property (UK)* Legal activities (UK)* Accounting, bookkeeping and

auditing activities; tax consultancy (CAN)*

Activities of head offices; management consultancy activities (FRA)*

Architectural and engineering activities and related technical consultancy (NLD)*

Technical testing and analysis (HUN)*

Advertising (GER)* Market research and public

opinion polling (UK)* Employment activities (GER)* Security and investigation

activities (ISR) Cleaning activities (NLD)*

* Available for comment 15

Enlargement of the scope• 9 new service industry sections have been

included in the new version of the SPPI Guide:

Waste management (FRA)* Wholesale and retail trade (CAN)* Food and Accommodation Publishing of books & periodicals (FRA)* Software publishing (US)* Financial activities (US)* Insurance activities (US)* Health service industries (US)* Research and Development (ISR)

* Available for comment16

Work plan and timeline

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Work plan and timeline

Completion by TF members of the revised and new guidelines on specific service industries: Winter 2012

Voorburg Group members are invited to express their willingness to provide comments on methodological chapters and guidelines on SPPI compilation

Final draft: Beginning of 2013

Publication: Summer 201318

Thank you for your attention

For further information, contact Anne-Sophie Fraisse (OECD) and

Thomas Jaegers (Eurostat)

Anne-Sophie.Fraisse@oecd.org Thomas.Jaegers@ec.europa.eu