WP7: Other Outputs
Objective: To develop new indicators for selected service sectors which can yet not be rolled out on a large scale but might be useful in future analysis.
Full details of the workpackage can be found in the description of work.
WP7 is devoted to more experimental research. It will make new proposals for output measurement in insurance, collective services and distributive trades. It will also consider the feasibility of measuring output of an aggregate ‘research sector’.
Output measurement in insurance
The first experimental measure relates to output measurement in insurance. This will explore the creation of alternative measures of both life and non-life insurance output that takes account of the quantum of risk. Risk measures are based on premium rate on assets for non-life insurance and on mortality rates for life insurance The measures will be applied in discussion with the Association of British Insurers and structured interviews with major insurance companies in the United Kingdom.
Output of the distributive trade services
The second experimental measures relate to measuring the output of the distributive trade services. This will include a review of methodologies currently in use to measure the output of distributive trade services, their main shortcomings and will propose improvements to these methodologies. The key problem in current National Accounts methodology is that prices of the purchases of goods for resale are not accounted for and these have become more important due to changes in retailer’s business models and rapid sales price declines of high-tech goods. New measures will be proposed and applied to a selected set of countries.
Performance in collective services
The third task of WP7 is to measure performance in collective services, concentrating on protective services (police, fire service, defence services). Essentially this involves distinguishing labour and capital which is employed in the front line delivery of the service from that which is employed in providing support to make the delivery of the service possible. The data for this work will in general be drawn from administrative sources and will most likely be carried out only for the UK. Other countries may be added depending on the data availability.
Combining outputs in sectors where R&D is significant
The final task will be to investigate how to combine outputs of sectors where R&D is significant including university research activities, the Research and Development industry (NACE 73), the pharmaceuticals industry and the health sector, to see if it is valuable to measure outputs and inputs in a combined ‘research sector’. It will explore constructing an indicator that could be used to measure the impact of technological capital generated by universities and other sectors through R+D expenditures.
Outputs of the Workpackage