1. Non-market services : Overview of Eurostat and OECD activities Paul Konijn, Eurostat Alain Gallais, OECD London, 3-5 October 2006

2. National accounts developments n 1998: Eurostat Task Forces on health, education and collective services: current (input) methods do not allow for changes in productivity –> impact on GDP volume measures n Volume measures regained interest due to increased importance for economic and monetary policy

3. National accounts developments (2) n 2001: Eurostat Handbook on Price and Volume Measures: preference for output methods for non-market services, in line with SNA93 and ESA95 n 2002: Commission Decision 2002/990 – remove input methods for health and education by 2006 n See presentations in sessions 2 and 5 on current state of implementation in EU and projects in OECD countries

4. Education n Handbook defines output as quantity of teaching received by students, adjusted for quality, for each type of education n Proposed quantity measure: numbers of pupil-hours or pupils

5. Health n Handbook defines output as quantity of health care received by patients, adjusted for quality, for each type of health care n Proposed quantity measure: numbers of complete treatments

6. Collective services n No obligation to remove input methods

7. International comparisons n Eurostat-OECD Purchasing Power Parities (PPP) program: input methods are used for all non-market services n Salaries of civil servants are compared across countries -> assumption of equal productivity n Project of better taking into account skill levels and consistency with national accounts

8. International comparisons (2) n Eurostat-OECD Task Force on non market services, composed of NA and PPP experts, is now investigating use of output methods for comparisons of education and health services n Can the same concepts applied in the NA also be applied to PPPs? n Recommendations expected in 2007

9. Education and health, international, ideas for output methods n Education –international databases of pupil/student numbers available –Looking at PISA and similar studies for possible quality adjustments, outcome-based. n Health –Large differences in health systems and data availability. Several possibilities, still to explore. n Consider market and non-market output together?

10. OECD non market project n To develop more detailed international guidelines for the development of volume measures of non- market output, both temporal and spatial, in particular for education and health, from April 2006 to September 2007 n 2 workshops : London, October 2006 and Paris, June 2007 n an OECD Statistical Manual to be published at end 2007 n Contribution to PPP-NA Task Force on non market services and to upcoming health-specific PPP Task Force

11. OECD Health-specific PPP project n Would take over from present NA-PPP Task Force on non market services at the beginning of 2007. Eurostat would be closely associated. More health experts. n two purposes: - (i) provide a tool for the analysis of the volume of health expenditure in OECD and EU countries. This objective is complementary to other data projects in the field of health accounts with a view to improving the information base for health policy makers; - (ii) provide input to the broader purpose of deriving economy-wide PPPs for international comparisons of volume GDP