icp-africa regional workshop pretoria, south africa 20 - 24 june 2011
TRANSCRIPT
Survey FrameworkSession III – Implementation of Price Survey
on Household Consumption products
ICP-Africa Regional WorkshopPretoria, South Africa
20 - 24 June 2011
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Copyright 2011, The World Bank Group. All Rights Reserved
Outline
1. Dimension of geography 2. Products to be priced
a. Selecting the products: important or less importantb. Product specificationsc. Number of products to be pricedd. The global core list and the regional lists
3. Timeframe of survey
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Copyright 2011, The World Bank Group. All Rights Reserved
RuralUrba
nRuralUrban
1. DIMENSION OF GEOGRAPHY
Region A
City A
City B
Town A
Village A
Region B
City C Village C
Stratifying a country
Country / Economy A
Obtain average national prices covering expenditures throughout the economic territory of the country.
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City / Town / Village / etc.Shopping District A
Outlet Type A Outlet Type B Outlet Type C
Shopping District B
Outlet Type A Outlet Type B
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Location of Outlets
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Guidelines for the Selection of Outlets
The selection of outlets should take into account•The different types of outlets•Their relative share of the overall expendituresConsiderations for the selection of outlets
Volume of their sales
Variability of their prices
Location Number of outlets per outlet type
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Outlet Types
Outlet type Examples
Large shops Supermarkets, hypermarkets, department stores
Medium and small shops Minimarkets, kiosks, neighborhood shops, grocery stores, convenience stores
Markets Open markets, covered markets, wet markets
Street outlets Mobile shops, street vendors,
Bulk and discount stores Wholesale stores, discount stores
Specialized stores Supply stores, hardware stores, furniture stores
Private service providers Taxi cabs, hotels, restaurants, private schools, private hospitals
Public or semipublic service providers
Water suppliers, electric power companies, public schools, public hospitals
Other kinds of trade Online (Internet) shopping sites, catalog orders
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Copyright 2011, The World Bank Group. All Rights Reserved
2. PRODUCTS TO BE PRICED
a. Selecting the products: important or less important
ICP 2011: Within each basic heading for the household consumption expenditure, countries will be asked to indicate whether each product is IMPORTANT or LESS IMPORTANT.
Country A Availability Importance
Code Basic heading and product nameAvailable = 1 Important = 1
Not available = 0 Less important = 0
1.Bread and cereals 1101111 Rice 7 1101111.01 Long grain rice, parboiled 1 11101111.02 Long grain rice, nonparboiled 1 01101111.03 Long grain rice, family pack 0 1101111.04 Jasmine rice 1 01101111.05 Basmati rice 1 1
Intra-country point of view
Important products: Products whose expenditure share in the basic heading is large.
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Important
Less importa
nt
Important
Less importa
ntProduct 1
Product 1
Product 1
Product 1
Product 2
Product 2
Product 2
Product 2
Country A Country B
Intercountry / regional point of view
Country A is required to price Product 2, even though it has classified the product as less important, in order to provide links with other countries that have classified the product as important, such as Country B—and vice versa for Product 1.
Expenditure share
Expenditure share
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Three guidelines to determining whether a product is important:
1. Is it in the CPI? 2. Use own judgment or common knowledge 3. Ask the experts
The experts, mostly shopkeepers , can answer the question, because the success of their businesses depends on knowing which products are best -sellers and which are bought less often.
National coordinators may know whether a product is IMPORTANT (that is, it has a large expenditure share in the basic heading) from his or her own knowledge.
How to Determine Whether a Product Is Important
If a product is the same as, or similar to, a good or service included in the CPI, IT IS IMPORTANT.
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Notes for Determining Importance
Notion of what is important--it’s WITHIN a basic heading (BH)
•Note that “large” and “small” relate to the basic heading.It is possible that the basic
heading “Wine” has a smaller expenditure share compared with other basic headings.
Still, specific wine product(s) should have a large expenditure share (= important) within the basic heading.
If compared with other BHs
If compared within the BH
Copyright 2011, The World Bank Group. All Rights Reserved
2. PRODUCTS TO BE PRICED
b. Product specifications
What is the SPD (structured product description) approach?
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Examples of product list using SPD approach (basic heading of “Fresh milk”)
1101141 Fresh milk Number of units
Unit of measurement
Min Max Brand Packaging Processing Fat content
110114101 Milk, un-skimmed Pasteurized
1 Liter 0.8 1.5 Well known Pre-packed; carton Pasteurised; HTST (High Temperature/Short Time)
treatment
Natural (3-4%)
110114102 Milk, un-skimmed UHT
1 Liter 0.5 1.5 Well known/National/Regional Brand
Pre-packed; carton Ultra High Temperature (UHT) Natural (3-4%)
Quantity Packaging Product characteristicBrand nameCode Name
Common for the basic heading
Values of individual product
(Classification Valuables)
Structured product descriptions are designed to clearly define the products to be priced.
Values of individual product
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Copyright 2011, The World Bank Group. All Rights Reserved
2. PRODUCTS TO BE PRICED
c. Number of products to be priced
Small number
of samples
Large number
of samples
• More precise!
• But costly…
• Less precise…
• But feasible!
What, then, is the optimal number of products to be priced?
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Determining the Number of Products (1)
The relationships of the following are used to evaluate the number of products:
1. The relative standard deviations
2. Target levels of precision
The optimum: Enough products that the sampling error of the basic heading PPP based on the product PPPs is within a target level of precision.
The greater the variance (deviation) the lower the level of precision
• a larger sample size is needed
to achieve target precision
The smaller the variance (deviation) the greater the level of precision
• a smaller sample size is okay
to achieve target precision
Therefore,
Therefore,
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Determining the Number of Products (2)
The number of products to be priced under each basic heading depends on
The price variability of
the basic heading
The relative importance of
the basic heading
The degree of overlap of
products across countries
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Copyright 2011, The World Bank Group. All Rights Reserved
2. PRODUCTS TO BE PRICED
d. The global core list and the regional lists
*We will learn the approaches in Module 8.
(Selected) GCL items
(Selected) GCL items
(Selected) GCL items
(Selected) GCL items
(Selected) GCL items
(Selected) GCL items
ICP 2011 - Core List Approach 601 core items
Each country is expected to price 100-300 of the 601 GCL items in their regional list.
A m a l g a m a t e d r e g i o n a l l i s t s
Global Office
Regional coordinat
ors
National coordinat
ors
Global Core List (GCL)
2011 globalcore listUsing SPDs (structured product
descriptions)
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2011 amalgamatedregional list
Amalgamated Regional Lists – How they were developed
First regional draft list
ICP 2011 Global Core List
Perfect matchComparable
ExclusiveExcl
usiveCOMBINE
- No duplication- Align characteristics
Code Basic Heading & Product name 1.09.2.01.1 Major durables for outdoor recreation
110921101 6-String Basic Acoustic Guitar for Beginner
<-- Global core items
110921102 Portable Electronic Keyboard <-- Global core items
110921103 Outboard engine <-- Global core items
110921104 Inflatable boat <-- Global core items
110921105 Bongo drum <-- Regional items
110921106 Tambourine <-- Regional items
Finalize
This process was carried out through • Exchange of e-mail• Regional workshops