Eurostat-OECD methodological guide for developing producer price indices for services [electronic resource]

2006·6 MB·English

by  Statistical Office of the European Communities

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Methodological
Guide for Developing
Producer Price
Indices for Services
OECD
(( eurostat
PUBLISHING
Copyrightedr

Eurostat-OECD
Methodological
Guide for Developing
Producer Price Indices
for Services
OECD((Q
ORGANISATIONFORECONOMICCO-OPERATIONANDDEVELOPMENT
ORGANISATIONFORECONOMICCO-OPERATION
ANDDEVELOPMENT
TheOECDisauniqueforumwherethegovernmentsof30democraciesworktogetherto
addresstheeconomic,socialandenvironmentalchallengesofglobalisation.TheOECDisalsoat
theforefrontofeffortstounderstandandtohelpgovernmentsrespondtonewdevelopmentsand
concerns,suchascorporategovernance,theinformationeconomyandthechallengesofan
ageingpopulation.TheOrganisationprovidesasettingwheregovernmentscancomparepolicy
experiences,seekanswerstocommonproblems,identifygoodpracticeandworktoco-ordinate
domesticandinternationalpolicies.
TheOECDmembercountriesare:Australia,Austria,Belgium,Canada,theCzechRepublic,
Denmark,Finland,France,Germany,Greece,Hungary,Iceland,Ireland,Italy,Japan,Korea,
Luxembourg,Mexico,theNetherlands,NewZealand,Norway,Poland,Portugal,theSlovakRepublic,
Spain,Sweden,Switzerland,Tlirkey,theUnitedKingdomandtheUnitedStates.TheCommissionof
theEuropeanCommunitiestakespartintheworkoftheOECD.
OECDPublishingdisseminateswidelytheresultsoftheOrganisation’sstatisticsgatheringand
researchoneconomic,socialandenvironmentalissues,aswellastheconventions,guidelinesand
standardsagreedbyitsmembers.
ThisworkispublishedontheresponsibilityoftheSecretary-GeneraloftheOECD.The
opinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficial
viewsoftheOrganisationorofthegovernmentsofitsmembercountriesorthoseof
EurostatortheEuropeanCommission.
Alsoavailableunderthetitle:
EurostatOECD.MethodologicalGuideforDevelopingProducerPriceIndicesforServices,EuropeanCommission
ISBN92-79-01869-8,Cat.Number:KS-BE-06-003-EN-N,ISSN1725-0048
©EuropeanCommunities/OECD2006
NOdC’ooEepCxyrpDrelipoPgriuhotbtdalutiCcisltoheiniaodnrngua,nrdccirogeophiCtyts,[email protected](oiCmreCgiCso()sCr,iFbC2o)y2n,2fo2aRr0xo,t3srr3eaunwe1so4dloa5etds2i4oGDnrr9ia9ovnfed30stD.h-aiAPnsuevgrpeumursbistls,iiscnMiasoAt,ni70ot1no590pm20h3a6o,ytPUaobSrciAeos,,pmyFfaraadaxenp1coewr9,ti7it8foha6nox4uo36tf38tw6h1ri0i4s0t6,wt3oien4nrfk6op7@escrh1om9opi,[e-mail](uefolnrdtUrbeSeforsnaelnnygt)aittoso
Foreword
TheInternationalProducerPriceIndexManual(PPIManual)publishedbytheIMFin2004,constituteda
landmark for international standards on price measurement and contains detailed, comprehensive
informationforthecompilationofproducerpriceindicesaswellasanextensivecoverageoftheconceptual
andtheoreticalissues.ThisMethodologicalGuideforDevelopingProducerPriceIndicesforServicesisa
complementtothePPIManualintwoways:itfocusesonservice-specificaspectsinthePPIcompilationby
developingfurthertheconceptualframeworkanditaddsdetaileddescriptionsofPPImeasurementfora
seriesofserviceindustries.
ThisGuidehasbeenjointlyproducedbytheOECD,EurostatandthemembersofaTaskforcewithdelegates
from19OECD/EUMembercountries:Austria,Belgium,Finland.France,Germany,Ireland.Italy,lapan,
Korea,Malta,Netherlands,NewZealand,Norway,Portugal,Spain,Sweden,Switzerland,theUnited
KingdomandtheUnitedStates.Severalcountriescontributedtotheguidebyprovidingdescriptionsof
servicePPIsforindividualindustries,othercountrieswererepresentedbynationalexpertsinatleastone
meetingoftheTaskForce.
ThegeneralchaptersintheGuidewerewrittenbymembersoftheOECDandEurostatSecretariatsand
undertheguidanceoftheTaskForce.OnthesideoftheOECD,SeppoVarjonenhasbeentheprincipal
authorandonthesideofEurostat.IsabelleRemond-Tiedrez.RichardMcKenzie(OECD)alsocontributed
significantlyasanauthorandasco-editor.Severalindividualsfromcountriesmadeimportantcontributions
totheadvancementofthereport,inparticularKumkoMoriya(BankofJapan),AurelKcnesseydeKenese
(CBSNetherlands),JariHaijunpaa(StatisticsFinland)andBenoitBuisson(INSEEFrance).
TheelectronicversionoftheGuideismadeavailableonboththeOECDandEurostatwebsites.The
TaskforceviewstheGuideasalivingdocument’thatitwillamendandupdatetoincorporateadditional
serviceindustriesandtoaddressparticularpointsingreaterdetail.Aneditorialcommitteewillbeestablished
finorththeisOpEuCrpDosree.giItonisahnodpbeedytohnadtwthiitshGauivdieewwitlolpardovvaidnecebetthteerdeivnfeolrompamteinotnofofrsdeervciicseisonp-rmoadkuicnegraprnidceanianldyiscies.s
ThereportispublishedjointlybyOECDandEurostat.
Eurostat OECD
InnaSteinbuka EnricoGiovannini
MethodologicalGuideforDevelopingProducerPriceIndicesforServices-©EuropeanCommunities/OECD,2006

Tableofcontents
Introduction 13
1.GeneralaspectsofSPPIcompilation 15
1.1DefinitionandscopeofSPPI 15
I1! CoverageofSPPI 15
1.1.2 GoalsofSPPI 15
1.2Statisticalunits 16
1.2.1 Generalprinciples 16
1.2.2 Outputofstatisticalunitsinspecialcases 16
1.3ProductandindustrySPPI 18
1.4Priceconcept 19
1.5Identificationofserviceproducts 19
1.5.1 Generalguidelines 19
1.5.2 Durationofservice-provisionasaservice-determiningfactor 20
1.6Timingofpricecollection 21
1.6.1 Accrualprinciple 21
1.6.2 Frequencyofpricecollection 22
1.7Treatmentofqualitychange 22
1.8Classifications 23
1.9Sampleframeandweights 23
1.10RelationshipoftheSPPItoothermajorpriceindices 24
2.MainpricingmethodsforSPPI 27
2.1Introduction 27
2.2Specificationofserviceoutput 28
2.3Classificationofpricingmethods 29
2.4Directuseofpricesofrepeatedservices 31
2.4.1 Standardcase 31
2.4.2 Contractpricing 32
2.5Unitvaluemethod 35
2.6Componentpricing 36
2.7Percentagefeemethod 38
2.8Modelpricing 39
2.8.1 Generalfeaturesofthemodelpricingmethod 39
2.8.2 Estimationofmodelpricesinpractice 40
2.9Pricingbasedonworkingtime 42
MethodologicalGuideforDevelopingProducerPriceIndicesforServices-©EuropeanCommunities/OECD,2006 5
2.9.1 Generalremarks 42
2.9.2 Time-basedmethods 42
3.Practicalaspectsofthedevelopmentprocess 47
3.1Introduction 47
3.2Industrydescription 48
3.3Contactswithtradeorganisations 48
3.4Methodologicalaspects 48
3.4.1 Samplingframe 48
3.4.2 Serviceidentification 49
3.5Pilotsurvey 50
3.6Treatmentofqualitychange 51
3.6.1 Preparatoryworkforhandlingqualitychangesinserviceproducts 51
3.6.2 Examplesofqualityadjustmentmethods 51
3.7Indexcalculation 55
3.7.1 Indexformula 55
3.7.2 Weightsandaggregationofanindex 55
3.8Qualityassessment 58
3.9Maintainingthequalityofserviceprices 60
Appendix1:StagesinthedevelopmentofSPPI-anexample 61
Appendix2:Exampleonacriteriamatrixforlegalservices 62
4.CompilationofSPPIforspecificserviceindustries 63
4.1Introduction 63
4.2Freighttransportbyroad 65
1. Descriptionofthesector(ISIC6023/NACE60.24) 65
2. Classificationaspectsandscopeofthesurvey 65
3. SampleDesign 66
4. Mainpricingmethods 66
5. Costsandbenefitsofthealternativepricingmethods 67
6. Qualityissues 67
7. Collectionoftheinformation 67
8. Specificaspects 67
9. Overviewofnationalmethods 68
4.3Seaandcostalwatertransport 68
1. Descriptionofthesector(ISIC611/NACE61.10) 68
2. Classificationaspectsandscopeofthesurvey 69
3. Sampledesign 69
4. Mainpricingmethods 69
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5. Costsandbenefitsofthealternativepricingmethods 69
6. Qualityissues 70
7. Collectionofinformationandspecificationofservices 70
8. Specificaspects 70
9. Overviewofnationalmethods 70
4.4Airtransport 72
1. Descriptionofthesector(ISIC621,622/NACE62.10,62.10) 72
2. Classificationaspectsandscopeofthesurvey 72
3. Sampledesign 73
4. Mainpricingmethods 73
5. Costsandbenefitsofthealternativepricingmethods 74
6. Qualityissues 74
7. Collectionoftheinformation 71
8. Specificaspects 75
9. Overviewofnationalmethods 75
4.5Cargohandling 76
1. Descriptionofthesector(ISIC6301/NACE63.11) 76
2. Classificationaspectsandscopeofthesurvey 77
3. Sampledesign 77
4. Mainpricingmethods 77
5. Costsandbenefitsofthealternativepricingmethods 78
6. Qualityissues 78
7. Collectionofinformationandspecificationoftheservices 78
8. Specificaspects 78
9. Overviewofnationalmethods 78
4.6Storageandwarehousing 79
1. Descriptionofthesector(ISIC6302/NACE63.12) 79
2. Classificationaspectsandscopeofthesurvey 79
3. Sampledesign 79
4. Mainpricingmethods 79
5. Costsandbenefitsofthealternativepricingmethods 80
6. Qualityissues 81
7. Collectionofinformationandspecificationoftheservices 81
8. Specificaspects 81
9. Overviewofnationalmethods 8
4.7Postandcourierservices 81
1. Descriptionofthesector(ISIC641/NACE64.1) 81
MethodologicalGuideforDevelopingProducerPriceIndicesforServices-©EuropeanCommunities/OECD,2006 7
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2. Classificationaspectsandscopeofthesurvey 83
3. Sampledesign 83
4. Mainpricingmethods 84
5. Costsandbenefitsofthealternative 84
6. Qualityissues 85
7. Collectionoftheinformation 85
8. Specificaspects 85
9. Overviewofnationalmethods 85
4.8Telecommunications 87
1. Descriptionofthesector(ISIC642/NACE64.2) 87
2. Classificationaspectsandscopeofthesurvey 87
3. SampleDesign 88
4. Mainpricingmethods 88
5. Costsandbenefitsofthealternativepricingmethods 88
6. Qualityissues 89
7. Collectionoftheinformation 90
8. Specificaspects 90
9. Overviewofnationalmethods 90
4.9Realestateactivitieswithownproperty 91
1. Descriptionofthesector(ISIC701/NACE70.1) 91
2. Classificationaspectsandscopeofthesurvey 9
3. Sampledesign 91
4. Mainpricingmethods 91
5. Costsandbenefitsofthealternativepricingmethods 92
6. Qualityissues 92
7. Collectionoftheinformation 93
8. Specificaspects 93
9. Overviewofnationalmethods 93
4.10Computerandrelatedactivities 94
1. Descriptionofthesector(ISIC72/NACE72) 94
2. Classificationaspectsandscopeofthesurvey 94
3. Sampledesign 94
4. Mainpricingmethods 95
5. Costsandbenefitsofthealternativepricingmethods 95
6. Qualityissues 95
7. Collectionoftheinformation 96
8. Specificaspects 96
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