united nations economic commission for europe statistical division classification of individual...

United Nations Economic Commission for EuropeStatistical DivisionUnited Nations Economic Commission for EuropeStatistical Division

Classification of Individual Consumption According to Purpose - COICOP

Presentation by UNECE

UNECE Statistical Division Slide 2

Overview of presentation

1. COICOP

2. Need for a revision?

3. Replies from EECCA countries

4. Examples of possible changes


COICOP

1. COICOP is adopted by the UNSC

2. The current version was introduced in 1999

3. The objective of COICOP is to provide a set of homogeneous categories of goods and services, which are considered a function or purpose of expenditures by households with the object of classifying transactions in relation to individual consumption, social transfers and households' real consumption


COICOP

COICOP consists of 4-digits at 3 levels of aggregation

Level 1: 14 divisions, identified by two-digit numerical codes

Level 2: 58 groups, identified by three-digit numerical codes

Level 3: 157 classes, identified by four-digit numerical codes


COICOP• 01-12 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 household maintenance• 06 Health• 07 Transport• 08 Communication• 09 Recreation and culture• 10 Education• 11 Restaurants and hotels• 12 Miscellaneous goods and services• 13 Individual consumption expenditure of non-profit institutions serving

households (NPISH)• 14 Individual consumption expenditure of general government


COICOP

Main uses of COICOP in the areas of:

• National accounts

• Consumer price indices

• Household budget surveys

• Purchasing power parities


Need for a revision?

• The UN Expert Group on International Statistical Classifications

(EG-ISC) periodically reviews classifications to ensure their

relevance for the production of statistics • The need for a revision of COICOP has been raised by countries

and organisations to reflect the emergence of new consumer

goods and services and the development in consumption

patterns• UNSD in late 2012 conducted a global survey to evaluate the

need for a revision. 74 countries has replied to the survey• The EG-ISC in 2013 will discuss the outcome of the survey and

agree on scope and character of a possible revision


Replies from EECCA countries to COICOP Survey

Six EECCA countries have responded to the survey:Armenia, Azerbaijan, Belarus, Georgia, Russian Federation, Ukraine

Summary of main replies:

•The overall structure and the level of detail are suitable

•More details and guidance on the treatment of bundled services and telecommunications would be useful

•A 5-digit level should be introduced, while, on the other hand, coherence over time can only be maintained at 4-digit level!

•The division in goods and services should be maintained

•Applications for smart phones (Apps) should have a specific 4-digit class of its own


Examples of possible changes

01. Food and non-alcoholic beverages

•Ready made meals: new 4-digit class?

•Should ready made meals be recorded under 01.1 Food or 11.1 Catering Services?

•01.1.4 Milk, cheese and eggs looks heterogeneous; create separate class for eggs?

•Is there a need for separate class for potatoes, now under 01.1.7 Vegetables?



04.5.1 or 07.2.2 - Electricity for transport

•Should electricity for cars – and other vehicles - be recorded under 04.5.1 Household electricity, or 07.2.2 Fuels for transport?

06. Health – and 12.1.1 Beauty shops

•The borderlines between 06.2 Outpatient services, 06.3 Hospital Services and 12.1.1 Beauty shops are unclear

•Where to record plastic surgery/Botox not for medical purposes?



08.2-08.3 Telephone and telefax equipment and services

09.1 Audio visual, photographic and information processing equipment

•The distinction between communication (08.2-08.3) and 09.1 becomes still less clear: e.g. mobile phones with photographic and information processing functions

•The delineation of the classes of 09.1 does not reflect properly the latest development – e.g. touch-pads, computers used as televisions, video on demand

•Downloads of videos, music or electronic books. Is there a difference between streaming and permanent downloads?

•When should download be considered goods or services, respectively (09.1.4, 09.4.2, 09.5.1)?



• Paid access to news sites and electronic newspapers, should be included in 09.4.2/09.5.2

• Applications for smart phones – guidance on where to record these should be provided

• 08 and 09 should be updated; not too tight specifications to accommodate technological development

10. Education

• Should be updated to reflect the 2011 International Standard Classification of Education (ISCED)



Bundled goods and/or services

Common in telecommunication, computers and software, cars, vacation, fast food restaurants. Separation or creation of new classes?

Separation of goods and services

A revision should take the need to separate goods and services into account

Level of detailed

Is the 4-digit level sufficient, or should a 5-digit level be introduced?


Comments and suggestion can be send to

[email protected]

Thanks!

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