Federal Department of Home Affairs FDHA Federal Statistical Office FSO Ruth Meier, Director, Economy, State and Social Issues SFSO October 16th, 2006 OECD Workshop on Productivity Multi-factor productivity measurement: From data pitfalls to problem solving – the Swiss way

2 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Presentation Institutional framework and constraints From the production process … … through the maze of specific issues.. … up to first results Conclusion

3 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Presentation Institutional framework and constraints From the production process … … through the maze of specific issues.. … up to first results Conclusion

4 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Institutional framework and constraints Constraint 1 Flexible accounting framework  Heterogeneous information Constraint 2Unquoted enterprises: lack of regulation/information Constraint 3Limit statistical burden on enterprises Constraint 4International comparability: - central concern Additional surveys: neither wishful nor really useful National Accounts OECD manuals

5 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Presentation Institutional framework and constraints From the production process … … through the maze of specific issues.. … up to first results Conclusion

6 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Production process Gross fixed capital formation Capital stock PIM Capital services Total factor inputs Labor input Age-efficiency profile Age-price profile via geometric function Standard efficiency units User Costs Hours worked Cost share of capital input Gross Domestic Product (GDP) Multi-factor productivity Cost share of labor input Interest rate DepreciationHolding gains/ losses Asset price Depreciation Index Full-time equivalent s

7 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Presentation Institutional framework and constraints From the production process … … through the maze of specific issues.. … up to first results Conclusion

8 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Gross fixed capital formation Capital stock Capital services Total factor inputs Labor services Standard efficiency units User Costs Hours worked Gross Domestic Product (GDP) Multi-factor productivity Specific issues:

9 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Gross fixed capital formation Capital stock Capital services Total factor inputs Labor services Standard efficiency units User Costs Hours worked Gross Domestic Product (GDP) Multi-factor productivity Specific issues: Capital stock Two issues: - Lifetimes of assets  National Accounts - Back–calculations  GDP / Historical series of National Accounts Criteria: Coherent and transparent treatment

10 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Gross fixed capital formation Capital stock Capital services Total factor inputs Labor services Standard efficiency units User Costs Hours worked Gross Domestic Product (GDP) Multi-factor productivity Specific issues: User Costs Interest rate DepreciationHolding gains/ losses Asset price EndogenousExogenous Switzerland: Average

11 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Gross fixed capital formation Capital stock Capital services Total factor inputs Labor services Standard efficiency units User Costs Hours worked Gross Domestic Product (GDP) Multi-factor productivity Specific issues: User Costs Interest rate DepreciationHolding gains/ losses Asset price - Relative volatility of prices - Potentially negative user costs - Fitted Values used in Switzerland

12 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Presentation Institutional framework and constraints From the production process … … through the maze of specific issues.. … up to first results Conclusion

13 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Main results for Switzerland:

14 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Main results for Switzerland: Capital stock components

15 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Main results for Switzerland: GDP growth decomposed

16 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Main results: International comparisons (1)

17 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Main results: International comparisons (2)

18 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Presentation Institutional framework and constraints From the production process … … through the maze of specific issues.. … up to first results Conclusion

19 OECD Workshop on Productivity Ruth Meier, SFSO Federal Department of Home Affairs FDHA Federal Statistical Office FSO Conclusion Methodology sound, but… … data shortcomings may impact on results  consolidation required … new analytical framework and major additional inputs for political debate Asset lifetimes Interest rates Etc…