National accounts working party 14 16 october 2008 paris
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National Accounts Working Party 14-16 October 2008 Paris. Towards measuring the volume of health and education services Draft OECD Handbook Paul Schreyer, OECD/STD. National Accounts Working Party 14-16 October 2008 Paris. Towards measuring the volume of health and education services

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National Accounts Working Party 14-16 October 2008 Paris

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National accounts working party 14 16 october 2008 paris

National Accounts Working Party14-16 October 2008Paris

Towards measuring the volume of health and education services

Draft OECD Handbook

Paul Schreyer, OECD/STD


National accounts working party 14 16 october 2008 paris1

National Accounts Working Party14-16 October 2008Paris

Towards measuring the volume of health and education services

Draft OECD Handbook

Paul Schreyer, OECD/STD


Contents

Contents

  • Background

  • General concepts

  • Education

  • Health

  • Way forward


Background oecd project

Background: OECD Project

  • Strong and continueddemand for output measures of education and health by policy-makers

  • EuropeanRegulation

  • Project started in 2005, endorsement by CSTAT

  • Builds on previouswork: Eurostat Handbook on Volume and Prices, Atkinson Report, country experiences

  • Workshops in London (2006) and Paris (2007)

  • Objectives:

    • OECD Handbook

    • Data development

  • First draft of handbookpresented to WPNA 2007


Background an old question what is new

Background: An old question – what is new?

1. Joint work with sector specialists

  • Elaborated jointly with OECD’s specialised networks

    • Network of education experts

    • Network of health experts

  • Both networks have strong interest in measuring appropriate volume output


Background an old question what is new1

Background: An old question – what is new?

2: Joint treatment of temporal and spatial dimensions

  • Education and health PPPs are of great importance to analysts

  • PPPs and national accounts have to be consistent

  • Handbook deals with both dimensions in parallel


Concepts and terminology

Concepts and terminology

  • Distinction must be made between inputs, outputs, outcomes -

  • Best explained by way of a graph


National accounts working party 14 16 october 2008 paris

  • If outcome indicators are used for quality adjustment, they:

  • Should control for any other factors that affect outcome for consumers (e.g. socio-economic background of pupils, environmental impact on health)


Quality adjustment

Quality adjustment

  • First and important step towards capturing quality change is the correct stratification, i.e., the comparison of products with the same or at least similar characteristics.

  • Explicit quality adjustment may make it necessary to invoke outcomes

  • Handbook:

    • Health: discussion but no proposals for explicit quality adjustment

    • Education: discussion and proposal for explicit quality adjustment (exam scores) for secondary-level education


Values and weights

Values and weights

  • Current price values of non-market production = sum of costs

  • Volumes:

  • Direct volume index =volume change of items, aggregation with cost weights

  • Deflation: apply price index to values

  • (Quasi) price index = unit costs: costs per unit of output

  • as opposed to costs per unit of input


Education comparisons in time 1

Education – comparisons in time (1)

  • Basic approach:

  • Unit of output = (quality-adjusted) volume of teaching services delivered

  • Broadly, measured as pupil (hours), the number of hours during which pupils receive teaching services

  • But differentiation according to level of education important


Education comparisons in time 2

Education – comparisons in time (2)


Education comparisons in time 3

Education – comparisons in time (3)

  • To be developed: measuring research output of tertiary education establishments

  • To be completed and corrected: annex table with country practices


Education comparisons in space

Education – comparisons in space

  • In the past, PPPs for education based on comparison of input prices (teacher’s wages etc.)

  • Significant difficulties in measuring comparable input costs

  • Eurostat/OECD Taskforce on PPPs for education:

    • Examined output-based approach

    • Concluded that it yields more plausible results than input-based measures


Education comparisons in space1

Education – comparisons in space

  • Approach:

  • Stratification by level of education

  • Unit of output: pupil-hour (teaching received)

  • Secondary education: explicit quality adjustment with PISA scores, corrected for socio-economic variables


Health comparisons in time 1

Health – comparisons in time (1)

  • Disease-based approach

  • Increasing number of countries use disease-based approach

  • Reflects changes in administrative practice (e.g. shift to DRG system in Germany’s hospital administration)

  • Unit of output = (complete) treatment

  • But differentiation by type of activity important

  • Unit of output may vary between activities


Health comparisons in time 2

Health – comparisons in time (2)


Health comparisons in time 3

Health – comparisons in time (3)


Health comparisons in time 4

Health – comparisons in time (4)


Health comparisons in time 5

Health – comparisons in time (5)


Health comparisons in time 31

Health – comparisons in time (3)

  • Overview table of country practices

    • Based on country responses to Eurostat/OECD questionnaire in 2006

    • Attempt to describe practices in a common terminology  difficult but potentially useful!

    • Countries’s help needed to complete


Health comparisons in space

Health – comparisons in space

  • Presentation by Luca Lorenzoni (OECD Health Division)


Way forward

Way forward

  • Health PPPs further developed in 2009

  • Completion of the chapter on health PPPs

  • Presentation of draft to health and education experts

  • Revision and final draft in 2009

  • Delegates are asked to:

    • Comment on substance

    • Complete information on country practice

  • Foreseen: written procedure


Thank you

Thank you!


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