Measurement of non market volume output
Clarification item C10
Charles Aspden on behalf of
François Lequiller
OECD
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Status of item

ISWGNA accepted to open a clarification item C10 on
measurement of volume non market output

The objective is to incorporate in the SNA the
recommendations of the Atkinson report and of
Eurostat’s Handbook on volume and prices

No conceptual change of the SNA is proposed
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Status of item (continued)

The message remains to recommend « output
methods » for individual services, but to accept
« input » methods as a second best for collective
services

However, reference is made to « willingness-to-pay »
as a quality effect, with impact on volume measures
(but not on current price measure)

The proposal appears as a set of new or amended
paragraphs
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Theory of marginal benefits

16.134: the general conditions of market prices do
not apply for non market prices

16.135: in theory, the price relative of non market
services should reflect « marginal benefit », which is
equal to « willingness to pay »

: there is evidence that the change in the value
of many non market services is linked to the general
propsperity in a country’s economy
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Change in marginal benefit impacts volume

16.136: However, the current price value of
government output remains equal
to the sum of costs (including capital services?)

The change in the marginal benefit for the
consumer is to be treated as a change in the volume
of the services
The rationale is that this price change corresponds to a
change in the content of the service. It is therefore
treated as a change in quality, thus a change in
volume.
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Recommendations on output methods

16.139: the objective is to identify that part of the
overall change in outcome directly attributable to the
non market services

16.140: use cost weights,
respect two criteria: reflect full range of
services; make allowance for quality change

16.141: test output methods and implied productivity
measures with experts of the domain
Use input methods if the tests are not
satisfactory
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Health

16.142: definition of health services

main recommendation: use cost-weighted
number of treatments, taking into account quality
adjustments

illustration in the case of hospital services to
inpatients: use detailed number of treatments by
category of desease

adjust, if possible, for quality change
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Education

16.143: definition of education services

main recommendation: use detailed cost
weighted quantity indicator.

stratification should at least distinguish preschool, primary, lower secondary, higher education
and other education

proposed indicator: number of hours of pupil
attendance

include quality change (school inspection,
pupil/teacher ratio, exam success)
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Collective services

16.144 Current SNA paragraph is left unchanged: it
may not be feasible to avoid using the input method

16.145 existing SNA paragraph defining how to
deflate inputs is left unchanged
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