federal department of home affairs fdha federal statistical office fso ruth meier, director,...

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Ruth Meier, Director, Economy, State and Social

Issues

SFSO

October 16th, 2006

OECD Workshop on Productivity

Multi-factor productivity measurement: From data pitfalls to problem solving – the Swiss way

2 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Presentation

Institutional framework and constraints

From the production process …

… through the maze of specific issues..

… up to first results

Conclusion

3 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Presentation

Institutional framework and constraints

From the production process …

… through the maze of specific issues..

… up to first results

Conclusion

4 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Institutional framework and constraints

Constraint 1 Flexible accounting framework Heterogeneous information

Constraint 2 Unquoted enterprises:lack of regulation/information

Constraint 3 Limit statistical burden on enterprises

Constraint 4 International comparability:- central concern

Additional surveys: neither

wishful nor really useful

National AccountsOECD manuals

5 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Presentation

Institutional framework and constraints

From the production process …

… through the maze of specific issues..

… up to first results

Conclusion

6 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Production process

Gross fixed capital

formation

Capital stock

PIM

Capital service

s

Total factor inputs

Labor input

Age-efficiency profile

Age-price profilevia geometric

functionStandard efficiency

units

User Costs

Hours worked

Cost share of capital input

Gross Domestic

Product (GDP)

Multi-factor

productivity

Cost share of labor input

Interestrate

Depreciation

Holding gains/ losses

Assetprice

Depreciation

Index

Full-time equivale

nts

7 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Presentation

Institutional framework and constraints

From the production process …

… through the maze of specific issues..

… up to first results

Conclusion

8 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Gross fixed capital

formation

Capital stock

Capital service

s

Total factor inputs

Labor service

s

Standard efficiency

units

User Costs

Hours worked

Gross Domestic

Product (GDP)

Multi-factor

productivity

Specific issues:

9 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Gross fixed capital

formation

Capital stock

Capital service

s

Total factor inputs

Labor service

s

Standard efficiency

units

User Costs

Hours worked

Gross Domestic

Product (GDP)

Multi-factor

productivity

Specific issues: Capital stock

Two issues:

- Lifetimes of assets National Accounts

- Back–calculations GDP / Historical

series of National AccountsCriteria: Coherent and transparent treatment

10 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Gross fixed capital

formation

Capital stock

Capital service

s

Total factor inputs

Labor service

s

Standard efficiency

units

User Costs

Hours worked

Gross Domestic

Product (GDP)

Multi-factor

productivity

Specific issues: User Costs

Interestrate

Depreciation

Holding gains/ losses

Assetprice

Endogenous

Exogenous

Switzerland: Average

11 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Gross fixed capital

formation

Capital stock

Capital service

s

Total factor inputs

Labor service

s

Standard efficiency

units

User Costs

Hours worked

Gross Domestic

Product (GDP)

Multi-factor

productivity

Specific issues: User Costs

Interestrate

Depreciation

Holding gains/ losses

Assetprice

- Relative volatility of prices

- Potentially negative user

costs

- Fitted Values used in

Switzerland

12 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Presentation

Institutional framework and constraints

From the production process …

… through the maze of specific issues..

… up to first results

Conclusion

13 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Main results for Switzerland:

14 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Agricultural assets

Equipment

Construction

Main results for Switzerland: Capital stock

components

15 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 p

MFP

Contribution of capital input

Contribution of labour input

Main results for Switzerland: GDP growth

decomposed

16 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Main results: International comparisons

(1)MFP 1991 - 2003

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Sw

itzerland

Spain

Italy

Japan

Denm

ark

Neth

erlands

Belg

ium

New

Zeala

nd

Canada

Gre

ece

Germ

any

US

A

Fra

nce

Sw

eden

Austr

alia

Unite

d K

ingdom

Fin

land

17 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Main results: International comparisons

(2) Capitalistic intensity

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Fin

land

New

Zeala

nd

Neth

erlands

Belg

ium

Austr

alia

Sw

itzerland

Fra

nce

Canada

Germ

any

Denm

ark

Italy

Gre

ece

Sw

eden

Unite

d S

tate

s

Unite

d K

ingdom

Spain

Japan

18 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Presentation

Institutional framework and constraints

From the production process …

… through the maze of specific issues..

… up to first results

Conclusion

19 OECD Workshop on ProductivityRuth Meier, SFSO

Federal Department of Home Affairs FDHAFederal Statistical Office FSO

Conclusion

Methodology sound, but…

… data shortcomings may impact on results

consolidation required

… new analytical framework and major additional

inputs for political debate

Asset lifetimes

Interest rates

Etc…