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Cost analysis of key statistical products
Pieter Everaers, Director Eurostat European Commission CCSA, Paris 29 September 2016
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Value and benefits of official statistics
Value defined as 'the importance, worth, or usefulness of something' (source: the Oxford English Dictionary). The value of official statistics materialises in the trust and confidence that users have in them – societal value. The value has a material dimension – how much does it cost?
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Change of environment – new challenges for statistics
The data revolution: a digital transformation is taking place across the globe. New metrics: globalisation has changed the world. The future of Europe: the evolution of official statistics as a public good reflects the evolution of the society. The price of statistics: how to cope with shrinking resources and the need to cut red tape further.
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Statistics cost money, but then so do bad decisions
How to estimate, manage and reduce these costs in the production of statistics ?
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Cost analysis of key statistical products - why
Recent development on Evidence based decision making – importance of official statistics/ resource constraints Industrial process (new sources) calls for assessing cost/benefits Justify work done – setting priorities (negative priorities) Benchmarking (more cost efficient) Contribution to efficiency gains and development of statistical processes
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Relevant ESS initiatives and projects
Statistics Catalogue of statistical products Analysis of cost accounting systems in the ESS Impact assessment of initiatives in the Commission Cost- analysis of European statistics (by products) Regulation on European Statistics 223/2009 Income generation survey by UK Cost assessment of official statistics in the ESS
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Cost assessment: Output related (=on products)
Legal basis EU regulations (>350 laws) ; guidelines Deliverables Data collections sent by NSIs and ONAs to Eurostat Dissemination Published on Eurostat's website Products cost per product in ESS cost structure per country
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Scope of cost assessments initiatives
on 'global' level Official statistics in the ESS ongoing Cost analysis on 'European' cost level– by product National European ongoing ESS countries Eurostat Cost/merit exercise √
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Two approaches – top down and bottom up
Cost assessment of the production of official statistics in ESS covers national and European statistics Bottom up: Cost analysis of European statistics (by products) For both : Same methodology used. Coverage: NSIs, ONAs and regional offices.
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Cost assessment of official statistics in the ESS
Top down approach Cost assessment of official statistics in the ESS Scope Coverage Methodology National NSIs reference years: statistics ONAs Regional offices - accrual principal European costs and FTE statistics Goal to have an ESS picture by mid-2017
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European statistics' costs in ESS
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Relevant ESS initiatives and projects
Statistics Catalogue of statistical products Analysis of cost accounting systems in the ESS Impact assessment of initiatives in the Commission Cost- analysis of European statistics (by products) Regulation on European Statistics 223/2009 Income generation survey by UK Cost assessment of official statistics in the ESS
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European statistics - Phase 1 Estimated 2014 direct costs in Eurostat
Bottom up approach Cost-merit exercise European statistics - Phase 1 Estimated 2014 direct costs in Eurostat Multi domain indicators Accounting systems Primary data and indicators 11 mio euro 74 FTE 28 mio euro 109 FTE 43 mio euro 228 FTE 3 mio euro Partnership within the ESS and beyond 16 FTE
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European statistics - Phase 1 Estimated total costs in Eurostat,2014
Cost-merit exercise HR in FTE Costs in Eurostat Sub delegated Direct costs 427 84 mio € 27 mio € Indirect costs 316 65 mio € 8 mio € Total costs 743 150 mio € 34 mio €
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European statistics - Phase 1 Merit assessment in Eurostat
Cost-merit exercise European statistics - Phase 1 Merit assessment in Eurostat Global assessment on products by three focus groups on the following criteria: Policy use Legal requirements Competitive advantage Quality Multi-purpose statistics Applying a 15/70/15 distribution for high/medium/ low merits Merge the cost information with the results of the merit exercise – focus on products with high costs but low merits
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European statistics - Phase 2 Costs on European statistics in the ESS
by products Resources in NSIs, ONAs, regional offices For European statistics only; for the year 2015 Second step with 25 products and all ESS countries First step with 11 countries on 8 products; establishing methodology
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European statistics – Product list
The list ('Catalogue of products') covers more than 130 statistical products. It is annexed to the Annual Work Programme. Statistical products – examples: Annual national accounts Foreign direct investment Regional accounts Environmental taxes Business demography Innovation International trade in goods Demography and migration Education Health care
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European statistics' costs in ESS,
by products 28 Member states, 4 EFTA countries, Eurostat NSI : National Statistical Institutes. ONA: Other national statistical authorities.
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Challenges encountered
Different accounting systems in place in MSs - Lack of time registration system Definition of 'official' statistics Partners' involvement in the production of official statistics (NSIs, ONAs, regional offices) Role of Central banks Agreement on a common methodology
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Benefit of cost assessment
Contributes to resource allocation, cost transparency and priority-setting Motivates discussions on how to manage and reduce these costs in the production of statistics Use of cost information for benchmarking
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Thank you for your attention!
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