United Nations Economic Commission for Europe
Statistical Division
Classification of Individual Consumption
According to Purpose - COICOP
Presentation by UNECE
Overview of presentation
1.
COICOP
2.
Need for a revision?
3.
Replies from EECCA countries
4.
Examples of possible changes
UNECE Statistical Division
Slide 2
COICOP
1.
COICOP is adopted by the UNSC
2.
The current version was introduced in 1999
3.
The objective of COICOP is to provide a set of homogeneous
categories of goods and services, which are considered a
function or purpose of expenditures by households with the
object of classifying transactions in relation to individual
consumption, social transfers and households' real
consumption
UNECE Statistical Division
Slide 3
COICOP
COICOP consists of 4-digits at 3 levels of aggregation
Level 1: 14 divisions, identified by two-digit numerical codes
Level 2: 58 groups, identified by three-digit numerical codes
Level 3: 157 classes, identified by four-digit numerical codes
UNECE Statistical Division
Slide 4
COICOP
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01-12 Individual consumption expenditure of households
01 Food and non-alcoholic beverages
02 Alcoholic beverages, tobacco and narcotics
03 Clothing and footwear
04 Housing, water, electricity, gas and other fuels
05 Furnishings, household equipment and routine household maintenance
06 Health
07 Transport
08 Communication
09 Recreation and culture
10 Education
11 Restaurants and hotels
12 Miscellaneous goods and services
13 Individual consumption expenditure of non-profit institutions serving
households (NPISH)
14 Individual consumption expenditure of general government
UNECE Statistical Division
Slide 5
COICOP
Main uses of COICOP in the areas of:
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National accounts
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Consumer price indices
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Household budget surveys
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Purchasing power parities
UNECE Statistical Division
Slide 6
Need for a revision?
• The UN Expert Group on International Statistical Classifications
(EG-ISC) periodically reviews classifications to ensure their
relevance for the production of statistics
• The need for a revision of COICOP has been raised by countries
and organisations to reflect the emergence of new consumer
goods and services and the development in consumption patterns
• UNSD in late 2012 conducted a global survey to evaluate the
need for a revision. 74 countries has replied to the survey
• The EG-ISC in 2013 will discuss the outcome of the survey and
agree on scope and character of a possible revision
UNECE Statistical Division
Slide 7
Replies from EECCA countries to COICOP Survey
Six EECCA countries have responded to the survey:
Armenia, Azerbaijan, Belarus, Georgia, Russian Federation, Ukraine
Summary of main replies:
• The overall structure and the level of detail are suitable
• More details and guidance on the treatment of bundled services
and telecommunications would be useful
• A 5-digit level should be introduced, while, on the other hand,
coherence over time can only be maintained at 4-digit level!
• The division in goods and services should be maintained
• Applications for smart phones (Apps) should have a specific 4digit class of its own
UNECE Statistical Division
Slide 8
Examples of possible changes
01. Food and non-alcoholic beverages
• Ready made meals: new 4-digit class?
• Should ready made meals be recorded under 01.1 Food or 11.1
Catering Services?
• 01.1.4 Milk, cheese and eggs looks heterogeneous; create
separate class for eggs?
• Is there a need for separate class for potatoes, now under 01.1.7
Vegetables?
UNECE Statistical Division
Slide 9
Examples of possible changes
04.5.1 or 07.2.2 - Electricity for transport
• Should electricity for cars – and other vehicles - be recorded
under 04.5.1 Household electricity, or 07.2.2 Fuels for transport?
06. Health – and 12.1.1 Beauty shops
• The borderlines between 06.2 Outpatient services, 06.3 Hospital
Services and 12.1.1 Beauty shops are unclear
• Where to record plastic surgery/Botox not for medical purposes?
UNECE Statistical Division
Slide 10
Examples of possible changes
08.2-08.3 Telephone and telefax equipment and services
09.1 Audio visual, photographic and information processing
equipment
• The distinction between communication (08.2-08.3) and 09.1
becomes still less clear: e.g. mobile phones with photographic
and information processing functions
• The delineation of the classes of 09.1 does not reflect properly
the latest development – e.g. touch-pads, computers used as
televisions, video on demand
• Downloads of videos, music or electronic books. Is there a
difference between streaming and permanent downloads?
• When should download be considered goods or services,
respectively (09.1.4, 09.4.2, 09.5.1)?
UNECE Statistical Division
Slide 11
Examples of possible changes
• Paid access to news sites and electronic newspapers, should be
included in 09.4.2/09.5.2
• Applications for smart phones – guidance on where to record
these should be provided
• 08 and 09 should be updated; not too tight specifications to
accommodate technological development
10. Education
• Should be updated to reflect the 2011 International Standard
Classification of Education (ISCED)
UNECE Statistical Division
Slide 12
Examples of possible changes
Bundled goods and/or services
Common in telecommunication, computers and software, cars,
vacation, fast food restaurants. Separation or creation of new
classes?
Separation of goods and services
A revision should take the need to separate goods and services into
account
Level of detailed
Is the 4-digit level sufficient, or should a 5-digit level be introduced?
UNECE Statistical Division
Slide 13
Comments and suggestion can be send to
rami.peltola@unece.org
Thanks!
UNECE Statistical Division
Slide 14