5 th Meeting of the International Comparison Program (ICP) - - PowerPoint PPT Presentation

5th Meeting of the International Comparison Program (ICP) Governing Board

December 13, 2019 Washington, DC

ICP Revision Policy

ICP Global Office, World Bank

Revision Policy Rationale

ICP benchmark and non-benchmark year results should be frequently revised, to ensure that the program’s

• utputs:

Reflect the latest available information and methodologies; Are of the highest quality; and Remain relevant to users.

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ICP Indicators

Purchasing Power Parities (PPPs) Price Level Index (PLIs) Real expenditures Per capita (p.c.) real expenditures Nominal expenditures Per capita (p.c.) nominal expenditures for all headings under the ICP Classification of Final Expenditure on GDP

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Triggers for Revisions: Input Data [1]

• 1. REVISIONS IN THE AGGREGATE GDP ESTIMATES

Revise real and p.c. real expenditures and nominal and p.c. nominal expenditures.

• 2. REVISIONS IN THE COMPONENTS OF GDP

Revise real and p.c. real expenditures and nominal and p.c. nominal expenditures. May also trigger a revision of PPPs and PLIs.

• 3. REVISIONS IN POPULATION FIGURES

Revise p.c. real expenditures and p.c. nominal expenditures.

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Triggers for Revisions: Input Data [2]

• 4. CHANGES IN COUNTRIES’ CURRENCY UNITS

Revise real and p.c. real expenditures, PPPs, PLIs, and nominal and p.c. nominal expenditures.

• 5. CORRECTION OF ERRORS IN SOURCE DATA OR RESULTS

May trigger a revision of real and p.c. real expenditures, PPPs and PLIs, and nominal and p.c. nominal expenditures.

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Triggers for Revisions: New Methodology [1]

• 1. SIGNIFICANTLY IMPROVED PPP COMPUTATION AND

AGGREGATION METHODS

Revise real and p.c. real expenditures, PPPs and PLIs.

• 2. SIGNIFICANTLY IMPROVED GLOBAL LINKING

APPROACH

Revise real and p.c. real expenditures, PPPs and PLIs.

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Triggers for Revision: New Methodology [2]

• 3. SIGNIFICANTLY IMPROVED RETROPOLATION/

INTERPOLATION/ EXTRAPOLATION METHOD

Revise timeseries of real and p.c. real expenditures, PPPs and PLIs.

• 4. A CHANGE TO THE ICP CLASSIFICATION OF FINAL

EXPENDITURE ON GDP

Triggered by the System of National Accounts (SNA) or Classification of Individual Consumption According to Purpose (COICOP) revisions. Revise real and p.c. real expenditures, PPPs, PLIs, and nominal and p.c. nominal expenditures.

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Triggers Revisions to ICP Indicators

Purchasing Power Parity and Price Level Index Real Expenditures Per capita Real Expenditures Nominal Expenditures Per capita Nominal Expenditures

Changes to input data

Revision to Aggregate GDP

✓ ✓ ✓ ✓

Revision to GDP components

? ✓ ✓ ✓ ✓

Revision to Population

✓ ✓

Change in Currency Unit

✓ ✓ ✓ ✓ ✓

Correction of errors in source data or results

? ? ? ? ?

New methodology

Significantly improved PPP computation and aggregation methods

✓ ✓ ✓

Significantly improved global linking approach

✓ ✓ ✓

Significantly improved retropolation/interpolation/ extrapolation method

✓ ✓ ✓

Change to the ICP classification of final expenditure on GDP

✓ ✓ ✓ ✓ ✓

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Guidelines for Revisions [1]

• A. HISTORICAL REVISIONS

Changes in historical input data from countries may trigger a revision to ICP results. Historical revisions based on new methodologies are subject to the feasibility of introducing the new methodology retrospectively.

• B. GEOGRAPHICAL SCOPE

Regions are responsible for revising benchmark indicators and associated timeseries at the regional level. Revisions to regional data should precede those applied to global data. Revised global results should maintain regional fixity.

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Guidelines for Revisions [2]

• C. CATEGORIES OF INDICATORS

Real and p.c. real expenditures will be revised when GDP expenditure data and/or population data are revised. PPPs and PLIs may be revised depending on the level of detail of the GDP expenditure revisions, and/or a change to the ICP classification. Nominal and p.c. nominal expenditures will be revised when GDP expenditure data and/or population data are revised.

• D. QUALITY REVIEW

Revised ICP data will be subject to an expert review before they are published.

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Guidelines for Revision [3]

• E. PUBLICATION OF REVISED RESULTS

Revised ICP indicators will be published once they have been compiled and undergone quality review. Revised ICP indicators will be released at the publication level of the benchmark results. The ICP Global Office will archive the various vintages of the data.

• F. UNPUBLISHED DATA

When revising published ICP indicators, unpublished data may need to be revised to maintain the consistency between the two datasets.

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Timing and Communication of Revisions [1]

TIMING OF REVISIONS

Revisions to real and p.c. real expenditures and nominal and p.c. nominal expenditures [triggered by GDP expenditure and population data revisions] are introduced

• n an annual basis.

Revisions to PPPs and PLIs are introduced in conjunction with the release of new benchmark results.

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Timing and Communication of Revisions [2]

COMMUNICATION OF REVISIONS

The schedule of revisions will be announced to stakeholders and users well in advance. When methodology is improved, the new methods will be communicated to users well in advance. Results will be made publicly available on the ICP Website, the World Bank’s Data Portal, the World Development Indicators, and other relevant sites.

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THANK YOU

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