1. 1 23rd Voorburg Group Meeting Aguascalientes, Mexico Discussion of Methodology for Determining Costs Associated with Different Choices of Pricing Methods and Turnover Detail presented by Mark E. Wallace Chief, Service Sector Statistics Division U.S. Census Bureau mark.e.wallace@census.gov September 22 - 26, 2008

2. 2 What is Our Goal for Pricing Methods and Turnover Detail? For Each Country and Industry/Industry Group: Make the Best Choices, given the Prevailing Circumstances What do we mean by “Best Choices”? What do we mean by “Prevailing Circumstances”?

3. 3 “Best Choices” and “Prevailing Circumstances” Boil Down to a Cost/Benefit Analysis of Industry Coverage and Data Quality Costs of Industry Coverage and Data Quality – What is the True Cost of Survey Collection? Benefits of Industry Coverage and Data Quality –National Accounts Requirements –Regulatory Requirements –Policy Requirements –Business Requirements –International Standards Can there be a Framework for Determining the Cost- Effectiveness of Various Choices?

4. 4

5. 5 Questions 1.How can we quantify the benefits of covering an industry/industry group? Perhaps industry turnover as a percent of GDP? 2.What is the true cost of a survey collection? Should it include all supporting infrastructure? What about the burden and cost experienced by respondents? 3.How can we measure the quality of prices and turnover data? Is the PPI Quality Assessment Framework proposed by Irwin Gerduk at a previous meeting a useful tool? (We plan to include the paper describing and illustrating this tool on the VG website.)

6. 6 Questions (continued) 4.Can we refine/improve upon the framework for assessing “best,” “good,” and “minimal” categories? If so, can VG members have the improved framework by the end of 2008? 5.Do we need to devote future sessions to these topics? 6.How can the Voorburg Group body of knowledge best be of assistance? Do you have comments on the updated website? Would development of a manual be useful?

7. 7 VG 2009 Task Force 4 Answer the questions In 5 weeks’ time, send to the Voorburg Bureau draft answers to the questions posed. The Voorburg Bureau reviews and approves the answers and sends the resulting answers to the Voorburg Group member countries by the end of 2008 Authors of VG 2009 presentations should use the answers provided as input to their papers and presentations Jean-Pierre Simard, Statistics Canada