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									REPORT OF 2008

 Working Party on National Accounts
          Paris, 14-16 October 2008

                       Jiemin GUO
• 2001 OECD task force for implementation of
  SNA93 treating software as fixed asset.
• Two previous software surveys
     • 2002 survey – result reported to OECD
     • 2004 small follow-up survey – result reported to
       OECD WPNA 2004
• 2007 OECD task force on R&D and Other
  Intellectual Property Products
     • The 2008 software survey: for the handbook with
       updated information
  2008 OECD Software Survey

• Scope: OECD countries and accession
  countries (35)
• 20 countries responded
  – 19 OECD Members
  – Israel
          Basic approach (1)
        - Purchased software
• 15 out of 20 countries use a combination of
  supply-side and demand-side data.
   • Most adopt confrontation and balancing process.
   • Some rely more on the supply-side data and just use the
     proportions from the survey estimates to allocate the
     supply-side aggregate to using industries and sectors,
   • others, such as the Netherlands, place more reliance on
     the demand-side data.
• Countries had different views on the quality of the
  survey data. Some countries had concerns, but
  others thought they were of satisfactory quality.
         Basic approach (2)
      - Own account software

• Six countries indicated that they also
  use surveys to obtain estimates of
  own account software GFCF.
  • Three of them also use a macro method
    to derive estimates
  • The others rely solely on the survey
         Basic approach (3)

• The remaining 5 of the 20 countries
  use the supply-side approach only for
  purchased software and the macro
  approach only for own account
     Supply-side approach
• Countries were asked to provide details for the
  7 steps for estimating software prescribed in
  the Handbook.
  • There is considerable variation in country practices
    and the relative magnitude of the adjustments.
     – Avoiding double counting
     – Excluding maintenance from software supply
     – Exclusion of household consumption.
• Identifying imports of software is a major
  problem for many countries.
 Macro approach to the estimation
    of own account software
• Most countries use employment of software
  professionals, but the coverage varies
• There is also considerable variation in the
  assumed proportions of the time spent by
  these people, ranges from 12.5% to 50%.
• The mark-up for non-labour costs varies a
  great deal, from 50% to 120% of labour costs.
   SNA 2008 recommendation on
        software licences

• Most countries reported that no data collected.
• It appears that it will be difficult to implement in
  practice, and it is something the TF needs to
• Possible solutions:
   – Add questions to surveys on length of software
   – Ask software publishers for length of software licences
     for business software
            R&D and software
• Only a few countries report having estimates of
  software R&D.
  – Only 8 countries answered.
  – 6 countries conducted R&D Survey.
  – 4 countries reported that R&D is included in the
    estimates of software GFCF.
• Probably not much thought has been given to
  inclusion of software R&D by other countries.
        Software price indices

• US (BEA) has established software price
  indices for different components
• A number of countries use the same
  approach as the BEA or use the adjusted
  BEA price index for packaged software.
• Most of the others use various PPIs, CPIs
  or wage rates.
       Software service lives

• Most countries do not use different service
  lives for packaged and own
  account/customised software.
• Overall, the service lives used vary
  between 3 and 8 years.

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