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Collecting data on household expenditure. Draft Chapter 5 of International Comparison Programme – a Handbook. Collecting data on household expenditure.

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collecting data on household expenditure

Collecting data on household expenditure

Draft Chapter 5 of International Comparison Programme – a Handbook

collecting data on household expenditure1
Collecting data on household expenditure

Will talk about background because relevant to explain what I stress. Heavily influenced by what went wrong last time. Important not to repeat same errors.

collecting data on household expenditure2
Collecting data on household expenditure
  • Where I come from
  • Survey taking
  • Latin America – all countries in South America
  • CPI in Ecuador
  • Harmonization of CPI in Southern tip
  • Regional development in India
  • Prices division in Stats Canada
collecting data on household expenditure3
Collecting data on household expenditure
  • Organizational subjects
  • ICP a special project
  • Awful trouble last round
  • Canada and Australia decided to terminate it
  • UN Statistical Commission - give it one more chance
  • Compromise - an evaluation
  • Evaluators - sharpest critics of ICP
collecting data on household expenditure4
Collecting data on household expenditure
  • All continents and Economic Commissions
  • Interested in opponents of initiative
  • Looked into failures
  • Why was Latin America late?
  • Why no official figures for LA?
  • Why was India adamant against?
  • In Africa: why virtual collapse?
collecting data on household expenditure5
Collecting data on household expenditure
  • Findings: bad management
  • Incapacity to use resources efficiently
  • No one in charge
  • Underfinanced
  • Not explicit about objectives
  • No mutual trust among countries
  • No understanding of list
  • Exercise perceived as opaque
  • Little contact with regional authorities
collecting data on household expenditure6
Collecting data on household expenditure
  • Decision to go regional 20 years old
  • At time no one questioned it
  • Countries felt decision honoured in the breach
  • Few contacts outside World Bank
  • No usable Handbook
  • No practical guidance
collecting data on household expenditure7
Collecting data on household expenditure
  • Spoke to users
  • Cavallo
  • Secretary of Planning in India
  • Michael Bruno
  • Under secretaries of Finance
  • All said: arcane, obsolete, unreliable
  • Rather use exchange rates
collecting data on household expenditure8
Collecting data on household expenditure
  • Contacts pitched much too low
  • Mostly: statistical offices
  • Most directors unaware
  • Few interested in outcome
  • Inept coordination
  • Starting position : strategic weakness
collecting data on household expenditure9
Collecting data on household expenditure
  • Definitions
  • Scope is region
  • Comments also apply to sub-region
  • National coordinator could be one of two
  • I/C pricing and household budget survey
  • I/C National Accounts must be aware
  • National coordination important
  • Two institutions
collecting data on household expenditure10
Collecting data on household expenditure
  • Governance discussed
  • Global management as well
  • Chapter 4 to 5 - transition from centre to region
  • Regional coordinator and national counterparts
  • Transmission and understanding of instructions
  • Informing of progress
  • How RC supports national counterparts
  • How counterparts relate to each other
  • Where relationship takes place
collecting data on household expenditure11
Collecting data on household expenditure
  • Time objectives clear
  • No allowance for tardy replies
  • Value of results will suffer
  • Respect for timetable profound
  • Information on progress continuous
  • Threats to timetable
  • RC and counterparts - communication tools
  • Surprises for cause - unacceptable
collecting data on household expenditure12
Collecting data on household expenditure
  • RC should have network of high level contacts including
  • Influence priorities
  • Referee in inter institutional conflict
  • Judge on adequacy of resources to meet ends
  • Involved in matters of substance
  • Discretion to adjust procedures
  • Public relations - exercise consistent with national interests
  • Does not interest exclusively World Bank
collecting data on household expenditure13
Collecting data on household expenditure
  • There is a Products list
  • National coordinators round a table
  • Review of goods and services
  • Cataloguing of gaps and differences
  • Differences between selected and CPI Deviation from CPI
  • Exchange of photographs
collecting data on household expenditure14
Collecting data on household expenditure
  • “Internalization” of IPC
  • Understanding of objectives
  • Respect for timetable
  • Tracking progress to avoid surprises
  • Creation of a network
  • Trust
  • Collective approval
  • Photography
  • Joint decisions
collecting data on household expenditure15
Collecting data on household expenditure
  • Cannibalizing CPI
  • CPI - an infra structure
  • Trained staff and supervisors
  • Knowledge-how households spend their money
  • Familiarity - way goods and services marketed
  • What is not representative
  • Where to look for replacements
  • Indications of sample size
  • Pricing has time dimension
collecting data on household expenditure16
Collecting data on household expenditure
  • How often should consumer goods be priced?
  • Every quarter
  • Price taking by right work force
  • Dress rehearsal to detect outliers
  • Outliers
  • Errors of fact and misjudgement
  • Imprudent to leave detection to last minute
collecting data on household expenditure17
Collecting data on household expenditure
  • Quarterly pricing - same discipline as CPI
  • Disappearance -temporary or definitive
  • Seasonality
  • Replacements
  • Outlet replacement
  • Sample size
  • Proportional to variability in CPI
collecting data on household expenditure18
Collecting data on household expenditure
  • Relevance and trust
  • Cut-off date
  • Whoever does not meet it is out
  • Discriminatory in favour of large countries
  • RC to create working web page
  • Participants aware of each other’s progress
  • TC and questions and answers
collecting data on household expenditure19
Collecting data on household expenditure
  • Capacity to inspect basic data
  • Confidentiality
  • Averaging required
  • Masking affects trust
  • Ways round provisions of act
  • Pricing outside the statistical office
  • Loss of CPI advantages
  • But could be used for subset
collecting data on household expenditure20
Collecting data on household expenditure
  • Special privileges to RC
  • Special privileges to RC’s venue
  • Special privileges to national coordinators
  • Averaging - consistent among countries
  • Averaging - reasonable
  • Accompanied by supporting information
  • Number of observations and range
collecting data on household expenditure21
Collecting data on household expenditure
  • Editing in two venues
  • National editing - editing for average prices
  • Also quarter to quarter changes
  • Outliers - batch checking
  • Price interviewer; product; locality; outlet
  • Extreme outliers (temporarily 2σ )
  • Not in national averages
collecting data on household expenditure22
Collecting data on household expenditure
  • New localities, capital and main city
  • Inter country editing
  • Use marked information
  • Exclude extremes
  • Refer them for checking
  • Alarm if extremes increase over time
  • Visit country
collecting data on household expenditure23
Collecting data on household expenditure
  • Transmission - standard system
  • Recording - standard layout
  • Most detailed product coding by type of establishment, national average
  • Challenged by peers
  • Evidence by photo
  • By number of quotations
  • By description
collecting data on household expenditure24
Collecting data on household expenditure
  • Participants have a working statistical office
  • Office produces CPI regularly
  • Staff for CPI collection and compilation
  • Contacts with retail network
  • Procedure to deal with missing products
  • Certified processing system
  • Not assumed: product replacement procedure
  • Adjustment for small quality variations
  • Good knowledge of complex products
collecting data on household expenditure25
Collecting data on household expenditure
  • Participants who fail to meet initial conditions
  • Require basic capability building pre Handbook
  • But problem of national coverage
  • Assume only minority have national coverage
  • RC will help establish missing facilities
  • Functioning network when pricing gets started
  • Materials translated into proper language
  • Lead time for local adjustments
collecting data on household expenditure26
Collecting data on household expenditure
  • Forms for reporting
  • Price taker to national coordinator
  • Change in characteristics (standard)
  • Plus action recommended
  • Disappearance
  • Plus action recommended
  • Disappearance of outlet
  • Plus action recommended
collecting data on household expenditure27
Collecting data on household expenditure
  • Addendum
  • Description of special circumstances
  • Summary form for RC
  • After full edit
collecting data on household expenditure28
Collecting data on household expenditure
  • Additional topics
  • Supplementary weights
  • Sources enumerated in Chapter 4
  • Trade associations
  • Specialized magazines
  • Customs declarations
  • Chambers of Commerce
collecting data on household expenditure29

Collecting data on household expenditure

Offices requiring basic assistance

Will be done through CPI

Use of standard instructions

Included in field manuals

Select respected practitioner

Example: BLS