1. 1 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Measuring Education and Health volume output Introduction

2. 2 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Education and Health OECD average = 10.9% of Total VA

3. 3 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Strong Impact on Comparability of Growth Not intermediate consumption: differences in statistical methods impact directly GDP 1% difference in the output volume growth of education and health => 0.1% impact on annual GDP growth The UK estimated that 0.5 point in growth differential with the USA could be due to different statistical methods for education, health and other government services => essential for OECD to ensure that methods are comparable

4. 4 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS OECD Project Started in 2005 Builds on previous work: Eurostat Handbook on Volume and Prices, Atkinson Report, country experiences Cooperation with the UKCeMGA and Eurostat Financed partly by INSEE (France), Government of Norway Objective: OECD Handbook on the Measurement of Volume Health and Education Output Timing: End 2008

5. 5 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS An old issue: what is new? An old issue in national accounts: costs and « input methods » Richard Stone skeptical of « output methods » because of lack of quality adjustment Output was supposed to increase productivity: it decreased productivity ! It is possible to improve the measurement Governments want to measure the change in the productivity of its inputs: value for money Performance indicators/Quality of public service National accounts have the same global objective How? Synergy!

6. 6 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS A transversal OECD project Project Limited to Education and Health Why? This is where the OECD has already specialised networks –Network of education experts –Network of health experts Both networks have strong interest in measuring appropriate volume output. Papers presented in this workshop originate: –From the Statistics Directorate –From the Health Division –From the Education Directorate –From the Economics Department And will be discussed in the specialised networks

7. 7 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS A transversal OECD project All these networks have the same objective: Measure aggregate volume (and price) of education and health expenditures taking account of the quality of the service Only experts and education and health can propose adequate quality adjustments. If a technical solution is rejected by specialised experts…it should be rejected by national accountants

8. 8 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Non market or Market? Main focus was traditionally « non market » The measurement of market services is easier? True but not so…true Quality adjustment are needed also for the market services The measurement of market and non market should follow the same principles Handbook is not limited to the non market sector Global solution applicable to both market and non market

9. 9 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Time series or spatial comparisons? Countries interested in productivity changes (time series) OECD interested in comparing productivity changes between countries But countries and OECD also interested in comparing the level of GDP per country (spatial comparisons PPPs) PPPs: currently « input based » Objective: Calculate output based PPPs for health and education.

10. 10 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Time series and spatial comparisons The conceptual backround for time series and PPPs is exactly the same Handbook covers both time series and PPPs Important objective: compile appropriate PPPs to be used by health and education experts to deflate health and education expenditures

11. 11 Paris 6-7 June 2007 2 nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Workshop Is organised alongside the Draft Chapters of the future Handbook –Session 1 = Chapter 1 : Terminology and concepts –Session 2 = Chapter 2 part 1: Education : concepts and spatial comparisons –Session 3 = Chapter 2 part 2: Education : time series and best practices –Session 4 = Chapter 3 part 1: Health: concepts and time series Objective: collect your comments on first draft Discuss best pratices with contributions from experts Session 5: Round Table for provisional conclusions First meeting of OECD/Eurostat task force on health PPPs: 8 June, same room