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Redesigning the SPPI: Enhancing Efficiency and Quality in The Netherlands

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This document outlines the redesign of the SPPI (Service Producer Price Index) in The Netherlands, led by PhD Marcel Spanjaard. It discusses key areas including production processes, sampling methods, classifications, and pricing strategies. The redesign aims to improve efficiency and data quality by implementing a top-down sampling tool and adopting new classification standards (NACE Rev. 2). By focusing on model pricing and conducting thorough analyses, the project strives to meet Eurostat obligations and ensure accurate representation of service industries.

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Redesigning the SPPI: Enhancing Efficiency and Quality in The Netherlands

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  1. Re-design SPPI The Netherlands M. Spanjaard, PhD

  2. Outline • Introduction • Production process • Sampling • Classification • “Pricemethods” • Comments

  3. Introduction (1) • 10 people working on SPPI (~9FTE) • 23 branches

  4. Introduction (2) • Re-design • efficiency • quality

  5. Production process[old] • realised hourly rates: diff > 10% • modelpricing: diff > 5% • not efficient

  6. Production process[new] • Topdown Tool • Only contact companies which have a significant influence on the indexmutation

  7. Topdown Tool

  8. Topdown Tool

  9. Topdown Tool

  10. Topdown Tool

  11. Topdown Tool

  12. Sampling[old] • stratum based on # of employees • (not on turnover!) • Fixed company weights • updated around every 5 years

  13. Sampling[old – example]

  14. Sampling[new] • PPS method • based on turnover • Census part • Sample part

  15. top level of industry Freight Transport by Road Freight Transport by Road Moving services sub level B C A B A A lowest level / activities (CPA) bulk liquids or gases frozen or refrigerated goods petroleum products activities from companies

  16. Classification[old] • NACE Rev 1 • Detailed level based on “own industry” • not CPA!

  17. Classification[new] • NACE Rev 2 • Detailed level based on CPA • uniformity • sampling • EuroStat obligation

  18. “Pricemethods”[old] • Unit values / realised hourly rates • Not a good pricingmethod for most industries • The re-design project “pricemethod” was not structured

  19. “Pricemethods”[new] • Modelpricing • quality change • Organised re-design “project pricemethod” • 1- Initial research • 2- Company visits • 3- Pricing method proposal • 4- Method testing on subsample • 5- Analysis of results • 6- “In production”

  20. Comments Marcel Spanjaard m.spanjaard@cbs.nl

  21. Appendix

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