Workshop on Price Index Compilation Issues February 23-27, 2015
Classification Systems
Gefinor Rotana Hotel, Beirut, Lebanon
Classification: Why Classify?
* Classification systems determine empirical economic analysis.
Classification must therefore be:
 *By meaningful criteria
*Neither too aggregated nor too fine at the published level
*Acceptable and comparable across countries
*Comparable across a sequence of accounts
*Exhaustive and mutually exclusive
*Flexible: new codes / satellite accounts *Useful in determining sampling units and stratification factors
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International and regional classification standards * Classification of Statistical units
* Functional expenditure classifications
* Product classifications
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Classification of Statistical units
[B]
* Institutional units
* Establishments of enterprise institutional units
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International and regional classification standards Activity or industry
International * International Standard Industrial Classification of all Economic Activities (ISIC, Rev 2, 3,4) Regional variants * NACE (EUROSTAT)
* North American Industrial Classification System (NAICS)
* Australia-New Zealand Standard Industrial Classification (ANZSIC)
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Establishments
MAJOR CHAPTERS OF THE ISIC REV. 4
The principal economic activities of the International Standard Industrial Classification of All Economic Activities (ISIC), revision 4, are A Agriculture, forestry and fishing
B Miningandquarrying
C Manufacturing
D Electricity,gas,steamandairconditioningsupply
E Water supply
F Construction
G Wholesale and retail trade; repair of motor vehicles and motorcycles
H Transport and storage
I Accommodation and food services
J Information and communication
K Financial and insurance activities
L Real estate activities
M Professional, scientific and technical activities
N Administration and support activities
O Public administration and defence; compulsory social security
P Education
Q Humanhealthandsocialworkactivities
R Arts, entertainment and recreation
S Other service activities
T Activities of households
U Activities of extraterritorial organizations and bodies
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Functional Expenditure classifications
Classifications Of Individual Consumption by Purpose (COICOP)
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Product classifications International systems *Harmonized Commodity Description and Coding System (HS)
*Standard Industrial Trade Classification (SITC)
*Central Product Classification (CPC)
 Regional Variants *Classification of Products by Activity (CPA) [EUROSTAT]
*Australia-New Zealand Central Product Classification (CPC derivative)
*Pending North American system
*Often extensions of industry or activity classifications
for PPI, of expenditure classifications for CPI
 February 23-27, 2015 METAC and IMF Statistics Dept. 8
Using classifications in price statistics Expenditure Classifications * CPI
* PPI
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Using classifications in price statistics * CPI * Household expenditure surveys use classifications for budget items that are distinct from standard product classification
* International: COICOP for HES, CPC for price survey, but a correspondence table exists to map CPC into COICOP
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COICOP: DIVISIONS
INDIVIDUAL CONSUMPTION EXPENDITURE OF:
- HOUSEHOLDS 01. Food and non-alcoholic beverages
02. Alcoholic beverages, tobacco and narcotics
03. Clothing and footwear
04. Housing, water, electricity, gas and other fuels
05. Furnishings, household equipment and routine
maintenance of the house
06. Health
07. Transport
08. Communication
09. Recreation and culture
10. Education
11. Restaurants and hotels
12. Miscellaneous goods and services
- GENERAL GOVERNMENT 14. Individual consumption expenditure of general government
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Using classifications in price statistics
PPI and construction put in place price index
 *Classification of establishments in business censuses and surveys, including the PPI price survey. Such censuses and surveys would include both government and privately owned establishments engaged in the covered activities. Production and capital formation surveys should use the same product classification to facilitate supply and use analysis.
*Issue: National business surveys generally use product classifications that are extensions of the industry classification, but as noted in the previous topic, this classification is not used in coding consumer price surveys, which are an extension of the household expenditure classification.

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Last edited by RCookie-Legacy; 02-13-2016 at 03:58 PM.