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Cost analysis of key statistical products

Cost analysis of key statistical products. Pieter Everaers, Director Eurostat European Commission. CCSA, Paris 29 September 2016. Value and benefits of official statistics. Value defined as ' the importance, worth, or usefulness of something' (source: the Oxford English Dictionary).

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Cost analysis of key statistical products

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  1. Cost analysis of key statistical products Pieter Everaers, Director Eurostat European Commission CCSA, Paris 29 September 2016

  2. Value and benefits of official statistics • Value defined as 'the importance, worth, or usefulness of something' (source: the Oxford English Dictionary). • The value of official statistics materialises in the trust and confidence that users have in them – societal value. • The value has a material dimension – how much does it cost?

  3. Change of environment – new challenges for statistics • The data revolution: a digital transformation is taking place across the globe. • New metrics: globalisation has changed the world. • The future of Europe: the evolution of official statistics as a public good reflects the evolution of the society. • The price of statistics: how to cope with shrinking resources and the need to cut red tape further.

  4. Statistics cost money, but then so do bad decisions • How to estimate, manage and reduce these costs in the production of statistics ?

  5. Cost analysisof key statistical products - why • Recent development on Evidence based decision making – importance of official statistics/ resource constraints • Industrial process (new sources) calls for assessing cost/benefits • Justify work done – setting priorities (negative priorities) • Benchmarking (more cost efficient) • Contribution to efficiency gains and development of statistical processes

  6. Relevant ESS initiatives and projects

  7. Cost assessment: Output related (=on products) Products cost per product in ESS cost structure per country

  8. Scope of cost assessments initiatives Cost assessment on 'global' level Official statistics in the ESS • ongoing Cost analysis on 'European' cost level– by product European National • ongoing ESS countries • √ Cost/merit exercise Eurostat

  9. Two approaches – top down and bottom up • Top down: Cost assessment of the production of official statistics in ESS covers national and European statistics • Bottom up: Cost analysis of European statistics (by products) For both : Same methodology used. Coverage: NSIs, ONAs and regional offices.

  10. Top down approach Cost assessment of official statistics in the ESS Scope Coverage Methodology National NSIs - reference years: statistics ONAs 2012-2015 + Regional offices - accrual principal European - costs and FTE statistics Goal to have an ESS picture by mid-2017

  11. European statistics' costs in ESS

  12. Relevant ESS initiatives and projects

  13. Bottom up approach Cost-merit exercise European statistics - Phase 1 Estimated 2014 direct costs in Eurostat 74 FTE 11 mio euro 109 FTE 28 mio euro 43 mio euro 228 FTE 16 FTE Partnership within the ESS and beyond 3 mio euro

  14. Cost-merit exercise European statistics - Phase 1Estimated total costs in Eurostat,2014

  15. Cost-merit exercise European statistics - Phase 1Merit assessment in Eurostat • Global assessment on products by three focus groups on the following criteria: • Policy use • Legal requirements • Competitive advantage • Quality • Multi-purpose statistics Applying a 15/70/15 distribution for high/medium/ low merits • Merge the cost information with the results of the merit exercise – focus on products with high costs but low merits

  16. European statistics - Phase 2Costs on European statistics in the ESS • First step • with 11 countries on 8 • products; • establishing • methodology

  17. European statistics – Product list • The list ('Catalogue of products') covers more than 130 statistical products. It is annexed to the Annual Work Programme. • Statistical products – examples: • Annual national accounts • Foreign direct investment • Regional accounts • Environmental taxes • Business demography • Innovation • International trade in goods • Demography and migration • Education • Health care

  18. European statistics' costs in ESS, • by products • 28 Member states, 4 EFTA countries, Eurostat • NSI : National Statistical Institutes. • ONA: Other national statistical authorities.

  19. Challenges encountered • Different accounting systems in place in MSs - Lack of time registration system • Definition of 'official' statistics • Partners' involvement in the production of official statistics (NSIs, ONAs, regional offices) • Role of Central banks • Agreement on a common methodology

  20. Benefit of cost assessment • Contributes to resource allocation, cost transparency and priority-setting • Motivates discussions on how to manage and reduce these costs in the production of statistics • Use of cost information for benchmarking

  21. Thank you for your attention!

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