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Measurement of Government Outputs

The input approach was used in 2005 based on government salaries for a number of occupations.  Because of quality differences, productivity adjustments were made in Asia, Africa, and Western Asia.  Regional linking factors were computed from compensation data from 75 countries representing all regions including Eurostat-OECD.  The linking factors were computed without adjustments for productivity and independently of the regional PPPs.

Several efforts are underway. A. Heston is writing the chapter on government for the ICP Book.  A. Deaton will do a paper on using government expenditures for education in a base country scaled by the proportion of the children attending school in each country.  The Eurostat-OECD is writing a manual on methods to estimate PPPs based on government outputs.

There are several dimensions to comparing government services.  While the Eurostat-OECD is moving to an output approach, developing countries will likely continue using compensation.  Developing countries, whether using inputs or outputs, face the “quality” problem that in 2005 was dealt with using productivity adjustments.  The input-output-quality issues can be dealt with region by region, but need to be faced for linking.

A working group including A. Heston Diewert, A. Deaton, F. Koechlin, and P. Konijn will consider the input/output/productivity and linking issues and produce recommendations for TAG consideration.  The work plan should include an in-depth analysis of the 2005 compensation data used for linking to identify strengths and weaknesses in the data to determine if there was also a data quality problem; determine whether productivity adjustments need only be done for a subset of countries, and if so the criteria to determine the subset.  The working group proposal should contain recommendations on how the regions should be linked given the different methodologies likely to be used.

  Research Item 03: Measurement of Government Outputs



ICP Book

Government Services: Compensation 

ICP Book

Government Services: Productivity Adjustments 


Information required on Government for the ICP 2011 (English)  (Arabic) (French) (Spanish)


Government Occupations, DCF & Indicators (English) (Arabic) (French) (Spanish


Questionnaire on Government Expenditure (English) (French) (Spanish


Presentation on Compensation of Government Employees (English


Government Occupations, DCF & Indicators


Questionnaire on Government Expenditure


Government Collective Services - Compensation and Productivity Adjustments


Questionnaire on Government Occupation


Chapter 18: Health and Education 


Productivity Adjustment for Compensation of Employees in the Government Sector: 2005 Asian Regional Comparison, Yuri Dikhanov

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