I. Overall Assessment

1. Israel subscribed to the Special Data Dissemination Standard (SDDS) on April 23, 1996 and met all requirements on June 5, 2000. The country is generally in observance of the SDDS, meeting the specifications for coverage, periodicity, timeliness, and the dissemination of advance release calendars. Israel avails itself of one of its two flexibility options for the timeliness of the industrial production index and disseminates the data one week later than prescribed. While practices generally meet or exceed SDDS requirements, monitoring of the data releases indicates that there have been some delays in the dissemination of the monetary and financial statistics, particularly the analytical accounts of the central bank. The mission noted that Israel does not fully manifest the intra- and interagency coordination and communication that are the hallmarks of most SDDS-subscribing countries. This has placed an undue burden on the Central Bureau of Statistics (CBS) as the national coordinator. Appendix I provides an overview of Israel’s dissemination practices compared to the SDDS.

2. The Report on the Observance of Standards and Codes (ROSC)—Data Module contains the following main observations. Israel’s macroeconomic statistics are of generally high quality and are broadly adequate to conduct effective surveillance. Israel’s statistical managers are highly aware of all dimensions of data quality and are undertaking reforms—some at the cutting edge—to continue, among other things, to enhance data quality. However, some shortcomings may impede the accurate and timely analysis of economic and financial developments and the formulation of appropriate policy. Foremost among these are deficiencies in the timeliness, concepts and definitions, and classification of monetary statistics. There also is room to enhance source data for national accounts, producer prices, and government finance statistics. The agencies comprising the statistical system, especially the CBS, need adequate and sustained resources to improve the scope and timeliness of data compiled under their mandates commensurate with the substantial transformation of the Israeli economy. The increasing importance of the service industries and the decreasing significance of agriculture, among other developments, characterizes this transformation. The serviceability and accessibility of monetary statistics and, to some extent, producer prices and government finance statistics could benefit from further improvements. Section II provides a summary assessment by agency and dataset based on a four-part scale. This is followed by staff’s recommendations in Section III. The authorities’ response to this report and a volume of detailed assessments are presented in separate documents.

3. This report applies the July 2003 version of the IMF’s Data Quality Assessment Framework (DQAF) to present the mission’s main conclusions. The report organizes the mission’s findings by agency for the first two dimensions of the DQAF and across datasets for the remaining four dimensions of the DQAF.

4. Prerequisites of quality and assurances of integrity. Israel has strong legal and institutional frameworks that support the compilation and dissemination of statistics:

• The Statistics Ordinance clearly mandates responsibility to the CBS for compiling and disseminating national accounts, prices, and government finance statistics. The ordinance requires the CBS to ensure the confidentiality of individual data providers and administer sanctions for noncompliance with reporting requirements. The CBS resources are increasingly stretched, particularly for compiling national accounts and government finance statistics, because of limited financial and inflexible manpower budgets. The constrained resource situation is likely to tighten further in the face of the measurement demands of a rapidly changing economy. This applies especially to the growth in the service industries, which should be monitored closely. The laws ensure the independence of the CBS. The mission found that the compilation and dissemination of the datasets it reviewed are based solely on statistical considerations and not subject to external influence. Management is highly sensitive to all dimensions of quality and is actively implementing a quality management system. The CBS actively promotes an environment of professionalism, transparency, and adherence to ethical standards.

• The Bank of Israel (BOI) is responsible for compiling and disseminating monetary statistics by tradition, but the current Bank of Israel Law does not specifically spell out this mandate. However, this law explicitly empowers the central bank to collect data and ensures the confidentiality of the reported data. Resources are broadly adequate to enable the central bank to undertake its current and development work programs. The BOI management is keenly aware of quality issues and is undertaking a major institutional review of its internal organization with the aim of becoming more efficient in discharging its duties while ensuring continued professionalism, transparency, and observance of ethical norms.

5. Methodological soundness. The Israeli macroeconomic statistics broadly follow internationally accepted standards and guidelines on concepts and definitions, scope, classification and sectorization, and basis for recording. The recording basis for monetary statistics generally follows the recommendations of the Monetary and Financial Statistics Manual (MFSM), but their classification/sectorization, concepts and definitions, and, to a lesser extent, scope, need to be improved. Government finance statistics are generally consistent with the System of National Accounts 1993 (1993 SNA) and the Government Finance Statistics Manual 2001 (GFSM 2001). They could benefit from strengthened interagency coordination aimed at improving the scope and basis for recording. The scope and recording basis for producer prices also could be improved. The national accounts follow the 1993 SNA, but the recording of GDP at market prices should be brought in line with international standards.

6. Accuracy and reliability. Macroeconomic statistics in Israel rate highly on accuracy and reliability. In large part, this reflects the efforts to assess source data and validate intermediate data and statistical outputs across datasets. The CBS needs additional resources to improve the source data for national accounts, producer prices, and government finance statistics. For national accounts and producer prices, priority should be given to obtaining more comprehensive and timely inputs. Similarly, for government finance statistics, more timely source data on central and local government operations would contribute to better inputs in the compilation of the consolidated general government accounts. Revision studies for national accounts and, to a lesser extent, producer prices would enhance their accuracy and reliability. Source data for monetary statistics are very accurate.

7. Serviceability. Production and dissemination of real and fiscal sector statistics (for which the CBS uses some estimates) in Israel meet SDDS periodicity requirements and are commendably timely. The BOI has initiated steps to consolidate responsibility for monetary statistics and to improve timeliness. Consistency across datasets is broadly adequate, although there still is room to improve monetary statistics. Most datasets follow the international good practice of providing clear and transparent information about revision schedules and the revisions themselves.

8. Accessibility. Overall, data and metadata are readily accessible, reflecting to a great extent recent efforts of the CBS to revamp its website and enhance responsiveness to inquiries by data users. The BOI is working to address current problems affecting users’ access to monetary data and metadata, including upgrading the BOI website.

9. Israel’s reorientation of monetary policy toward an inflation-targeting regime has significantly affected the use and relative importance of various types of macroeconomic statistics over the last few years. Principally, data requirements for the new regime’s policy design and monitoring have expanded beyond the traditional range of macroeconomic statistics to incorporate new forward-looking indicators of economic activity and prices. In particular, the BOI has increasingly focused on indicators such as productivity, price indices, market-based inflation and interest rate expectations, and information from professional forecasters. In addition, the BOI would like to see the CBS disseminate more timely real sector indicators to better support the inflation-targeting regime. Moreover, the BOI is taking steps to strengthen its statistical forecasting models for assessing the inflationary outlook, among other things, to reduce placing too much emphasis on market-derived indicators. To support this growing demand for economic information, it is important to review and revise appropriately the current allocation of resources for data compilation and dissemination within the BOI and other data-producing agencies. Finally, consistent with the views of the IMF Executive Board,¹ the authorities are encouraged to expand the coverage of the forward-looking data that support the monetary regime in Israel on their national websites and the Dissemination Standards Bulletin Board (DSBB), including the addition of relevant metadata.²

10. With regard to government finance statistics, the Ministry of Finance (MOF) was not directly assessed. However, its data are a significant source for the annual consolidated general government accounts compiled by the CBS. The mission met with officials at the MOF to discuss the accounting reforms being implemented in such areas as standardization, accrual-based financial reporting, and the application of information technology to fiscal management and reporting practices. The MOF (accountant general) is midway through implementing the “Merkava” project, which is aimed at, among other things, improving information on the assets and liabilities of the government, developing balance sheets for central government ministries, and preparing accrual-based financial statements commensurate with international standards. The authorities are to be commended for their proactive efforts in improving fiscal transparency and accountability, as well as plans to harmonize the financial management information system being developed with the GFSM 2001. The mission noted the synergies that are possible between the MOF’s work and the CBS’s concurrent implementation of the GFSM 2001 framework for compiling annual consolidated general government accounts. Many of the recommendations contained in the detailed assessments directly relate to fully exploiting these synergies (see the section on government finance statistics in Volume III, Detailed Assessments Using the Data Quality Assessment Framework). Foremost among these is the creation of an interagency working group that would have a mandate—and timetable—to address the following areas: basis of recording, classifications, coverage, periodicity, and timeliness.

II. Assessment by Agency and Dataset

11. In this section, the results are presented for each element of the DQAF using a four-point rating scale (Table 1). Assessments of the prerequisites of data quality and the assurances of integrity (Dimensions “0” and “1” of the DQAF) are presented in Tables 2a–b. For each dataset, the assessment of methodological soundness, accuracy and reliability, serviceability, and accessibility (Dimensions “2” to “5” of the DQAF) are shown in Tables 3a–e.

Table 1.

Israel: Data Quality Assessment Framework July 2003—Summary Results

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

Table 1.

Israel: Data Quality Assessment Framework July 2003—Summary Results

Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable
		Datasets	National Accounts	Consumer Price Index	Producer Price Index	Government Finance Statistics	Monetary Statistics
Dimensions/Elements
0.	Prerequisites of quality
0.1	Legal and institutional environment		O	O	O	O	LO
0.2	Resources		LNO	LO	LO	LNO	LO
0.3	Relevance		O	O	O	O	LNO
0.4	Other quality management		O	O	O	O	LO
1.	Assurances of integrity
1.1	Professionalism		O	O	O	O	LO
1.2	Transparency		O	O	O	LO	LO
1.3	Ethical standards		O	O	O	O	O
2.	Methodological soundness
2.1	Concepts and definitions		O	O	O	O	LNO
2.2	Scope		O	O	LO	LO	LO
2.3	Classification/sectorization		O	O	O	O	NO
2.4	Basis for recording		LO	O	LO	LO	LO
3.	Accuracy and reliability
3.1	Source data		LO	O	LO	LO	O
3.2	Assessment of source data		O	O	O	O	O
3.3	Statistical techniques		LO	LO	LO	O	O
3.4	Assessment and validation of intermediate data and statistical outputs		O	O	O	O	NA
3.5	Revision studies		LO	O	LO	O	NA
4.	Serviceability
4.1	Periodicity and timeliness		O	O	O	O	LO
4.2	Consistency		O	O	O	O	LO
4.3	Revision policy and practice		O	O	LO	O	O
5.	Accessibility
5.1	Data accessibility		O	O	O	LO	LO
5.2	Metadata accessibility		O	O	O	O	LNO
5.3	Assistance to users		O	O	O	O	LNO

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

View Table

Table 1.

Israel: Data Quality Assessment Framework July 2003—Summary Results

Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable
		Datasets	National Accounts	Consumer Price Index	Producer Price Index	Government Finance Statistics	Monetary Statistics
Dimensions/Elements
0.	Prerequisites of quality
0.1	Legal and institutional environment		O	O	O	O	LO
0.2	Resources		LNO	LO	LO	LNO	LO
0.3	Relevance		O	O	O	O	LNO
0.4	Other quality management		O	O	O	O	LO
1.	Assurances of integrity
1.1	Professionalism		O	O	O	O	LO
1.2	Transparency		O	O	O	LO	LO
1.3	Ethical standards		O	O	O	O	O
2.	Methodological soundness
2.1	Concepts and definitions		O	O	O	O	LNO
2.2	Scope		O	O	LO	LO	LO
2.3	Classification/sectorization		O	O	O	O	NO
2.4	Basis for recording		LO	O	LO	LO	LO
3.	Accuracy and reliability
3.1	Source data		LO	O	LO	LO	O
3.2	Assessment of source data		O	O	O	O	O
3.3	Statistical techniques		LO	LO	LO	O	O
3.4	Assessment and validation of intermediate data and statistical outputs		O	O	O	O	NA
3.5	Revision studies		LO	O	LO	O	NA
4.	Serviceability
4.1	Periodicity and timeliness		O	O	O	O	LO
4.2	Consistency		O	O	O	O	LO
4.3	Revision policy and practice		O	O	LO	O	O
5.	Accessibility
5.1	Data accessibility		O	O	O	LO	LO
5.2	Metadata accessibility		O	O	O	O	LNO
5.3	Assistance to users		O	O	O	O	LNO

Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. Practice not observed: most DQAF practices are not met. Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances.

Table 2a.

Israel: Assessment of Data Quality—Dimensions 0 and 1—Central Bureau of Statistics

Table 2a.

Israel: Assessment of Data Quality—Dimensions 0 and 1—Central Bureau of Statistics

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The Central Bureau of Statistics (CBS) is the general authority for official statistics in Israel under the terms of the Statistics Ordinance [New Version], 5732-1972, last amended in 1978, which prescribes that the CBS must adhere to the principles of neutrality, objectivity, and scientific independence. Individual data are required to be kept confidential according to the Statistics Ordinance and other national laws. The CBS has put detailed procedures and sanctions in place to prevent disclosure of such data. The CBS has the legal mandate to require reporting from government agencies, enterprises, and individuals. It seeks to secure the cooperation of respondents by providing assistance, limiting the response burden to the extent possible, and testing questionnaires before they are sent out. Respondents are informed about their rights and obligations. The Statistics Ordinance provides clear guidance regarding data sharing and coordination among data-producing agencies. Formal agreements exist and, as a general rule, the CBS does not encounter major difficulties in dealing with the other agencies. Nonetheless, the compilation of government finance statistics—consolidated general government accounts—could be improved through closer collaboration with the MOF and BOI. Adhering to confidentiality provisions, the CBS cannot share individual data. Resources Staffing is increasingly overstretched, especially in macroeconomic statistics, and reduced funding combined with a hiring freeze make it difficult to undertake research on the data and new methods, or engage in important development work aimed at further implementing international standards (i.e., 1993 SNA, GFSM 2001, and price index manuals). The qualifications, skills, and motivation of staff are high, and are maintained and further developed by providing internal training, including for new staff, and participation in international forums. Significant investment in human resources development—given existing budget constraints—is embedded in the corporate culture of the CBS. Computer resources are largely outdated. Needed improvements require additional—and sustained—budgetary resources. On-site facilities are excellent. Without additional funding and greater managerial discretion in allocating funds and staff, it will be difficult to maintain excellence, strengthen existing functions, and implement planned programs. The CBS has entered into ad hoc service-level contracts funded by some national organizations; although these projects are important, they may not be sustainable. Relevance The Public Council for Statistics (and other informal bodies) advise on the relevance of the CBS’s statistics. Much statistical activity is driven by adherence to international standards. General users are encouraged to provide any comments they wish to make. These are monitored closely. Information on new and emerging requirements is obtained through participation in meetings organized by the Organization for Economic Co-operation and Development, the United Nations Economic Commission for Europe, Eurostat, the IMF, etc. Other quality management The CBS management is highly sensitive to all dimensions of quality and is actively implementing a quality management system based on the framework of the European Foundation for Quality Management. Every department comprises at least one person responsible for quality management issues. Various processes are in place to monitor the quality of the statistical program.

Professionalism Several provisions in the Statistics Ordinance support the CBS’s professional independence. The Government Statistician manages the activities and finances of the CBS and appoints staff. The Statistics Ordinance stipulates that Israel’s official statistics should be free from any political or other pressure, particularly with regard to techniques, definitions, and methodologies. Recruitment and promotion are based on relevant aptitude and expertise. The Statistics Ordinance contains provisions that require that the choice of data sources, statistical techniques, and dissemination be informed by statistical considerations. The Statistics Ordinance includes specific provisions that support professional and independent statistical processes. The CBS has an active policy in place for responding to erroneous use or misinterpretation of statistics. Transparency Information on the terms and conditions for compiling statistics is available on the CBS website, in the Statistics Ordinance, and in the report prepared in accordance with the Freedom of Information Law, which can also be found on the CBS website. Advance access by the MOF to national accounts and general government accounts data are indicated in Hebrew in the CBS sources. Advance notice is given of major changes in methodology, source data, and statistical techniques. Ethical standards Staff behavior is guided by the CBS’s Statistics Ordinance, the Civil Service Code, and the CBS Code of Ethics, created in May 2004, which is given to all employees and published on the CBS website.

View Table

Table 2a.

Israel: Assessment of Data Quality—Dimensions 0 and 1—Central Bureau of Statistics

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The Central Bureau of Statistics (CBS) is the general authority for official statistics in Israel under the terms of the Statistics Ordinance [New Version], 5732-1972, last amended in 1978, which prescribes that the CBS must adhere to the principles of neutrality, objectivity, and scientific independence. Individual data are required to be kept confidential according to the Statistics Ordinance and other national laws. The CBS has put detailed procedures and sanctions in place to prevent disclosure of such data. The CBS has the legal mandate to require reporting from government agencies, enterprises, and individuals. It seeks to secure the cooperation of respondents by providing assistance, limiting the response burden to the extent possible, and testing questionnaires before they are sent out. Respondents are informed about their rights and obligations. The Statistics Ordinance provides clear guidance regarding data sharing and coordination among data-producing agencies. Formal agreements exist and, as a general rule, the CBS does not encounter major difficulties in dealing with the other agencies. Nonetheless, the compilation of government finance statistics—consolidated general government accounts—could be improved through closer collaboration with the MOF and BOI. Adhering to confidentiality provisions, the CBS cannot share individual data. Resources Staffing is increasingly overstretched, especially in macroeconomic statistics, and reduced funding combined with a hiring freeze make it difficult to undertake research on the data and new methods, or engage in important development work aimed at further implementing international standards (i.e., 1993 SNA, GFSM 2001, and price index manuals). The qualifications, skills, and motivation of staff are high, and are maintained and further developed by providing internal training, including for new staff, and participation in international forums. Significant investment in human resources development—given existing budget constraints—is embedded in the corporate culture of the CBS. Computer resources are largely outdated. Needed improvements require additional—and sustained—budgetary resources. On-site facilities are excellent. Without additional funding and greater managerial discretion in allocating funds and staff, it will be difficult to maintain excellence, strengthen existing functions, and implement planned programs. The CBS has entered into ad hoc service-level contracts funded by some national organizations; although these projects are important, they may not be sustainable. Relevance The Public Council for Statistics (and other informal bodies) advise on the relevance of the CBS’s statistics. Much statistical activity is driven by adherence to international standards. General users are encouraged to provide any comments they wish to make. These are monitored closely. Information on new and emerging requirements is obtained through participation in meetings organized by the Organization for Economic Co-operation and Development, the United Nations Economic Commission for Europe, Eurostat, the IMF, etc. Other quality management The CBS management is highly sensitive to all dimensions of quality and is actively implementing a quality management system based on the framework of the European Foundation for Quality Management. Every department comprises at least one person responsible for quality management issues. Various processes are in place to monitor the quality of the statistical program.

Professionalism Several provisions in the Statistics Ordinance support the CBS’s professional independence. The Government Statistician manages the activities and finances of the CBS and appoints staff. The Statistics Ordinance stipulates that Israel’s official statistics should be free from any political or other pressure, particularly with regard to techniques, definitions, and methodologies. Recruitment and promotion are based on relevant aptitude and expertise. The Statistics Ordinance contains provisions that require that the choice of data sources, statistical techniques, and dissemination be informed by statistical considerations. The Statistics Ordinance includes specific provisions that support professional and independent statistical processes. The CBS has an active policy in place for responding to erroneous use or misinterpretation of statistics. Transparency Information on the terms and conditions for compiling statistics is available on the CBS website, in the Statistics Ordinance, and in the report prepared in accordance with the Freedom of Information Law, which can also be found on the CBS website. Advance access by the MOF to national accounts and general government accounts data are indicated in Hebrew in the CBS sources. Advance notice is given of major changes in methodology, source data, and statistical techniques. Ethical standards Staff behavior is guided by the CBS’s Statistics Ordinance, the Civil Service Code, and the CBS Code of Ethics, created in May 2004, which is given to all employees and published on the CBS website.

Table 2b.

Israel: Assessment of Data Quality—Dimensions 0 and 1—Bank of Israel

Table 2b.

Israel: Assessment of Data Quality—Dimensions 0 and 1—Bank of Israel

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The responsibility of the central bank for monetary statistics is not specified in the BOI Law or in any other official provision. Coordination with the MOF, which forwards to the BOI statements from institutional investors, is good. Some clauses in the BOI Law empower the central bank to collect source data from commercial banks and provide for the confidentiality of data from individual providers. Resources There is some shortage of human resources for the compilation of monetary statistics. Financial and computer resources, as well as the premises, are adequate. There is scope for improving the cooperation between the various departments with regard to the design and timely updating of the BOI website for posting monetary statistics. Relevance Monetary statistics are adequate in meeting the data needs for the BOI’s inflation targeting monetary policy. No regular surveys or meetings on the needs of monetary statistics users outside the BOI are conducted. Specific requests on monetary statistics from users are not analyzed to improve the statistical program and dissemination formats. Other quality management There is a strong awareness of monetary statistics quality as a contribution to the effectiveness of monetary policy formulation. However, quality awareness is less observed, for instance, with regard to consistency of monetary statistics with other macroeconomic datasets or dissemination of monetary statistics.

Professionalism Legal provisions targeting all levels of staff within the BOI warrant that monetary statistics are produced on an impartial basis. The BOI promotes professionalism through support for research and analysis, publication of working papers, and participation in international conferences. However, to date no BOI staff has attended courses or seminars on monetary statistics offered by the IMF despite specific invitations to do so. Choices of sources and statistical techniques, as well as decisions about the dissemination of monetary statistics, are informed solely by statistical consideration. The current bias of these choices toward the inflation-targeting monetary regime needs to be better balanced by other policy considerations. The timely communication of the BOI to the public in the context of monetary policy decisions ensures that monetary statistics are correctly interpreted. Transparency The BOI Law lacks any mention of monetary statistics, and this is not compensated by specific information on the terms and conditions under which source data are collected and processed and monetary statistics are disseminated to the public. Government officials have no access to monetary statistics prior to their release to the public. On the CBS website, there is no indication that the BOI is the source for monetary statistics. Generally, the BOI provides advance notice of changes in methodology. Ethical standards Throughout the staff of the BOI, ethical standards are at the highest level. A series of guidelines for BOI staff behavior are set out in the BOI Law, the labor constitution regarding BOI employees, internal work procedures, and an information booklet for employees. In addition, provisions on secrecy under national penal law apply to BOI employees as well.

View Table

Table 2b.

Israel: Assessment of Data Quality—Dimensions 0 and 1—Bank of Israel

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment The responsibility of the central bank for monetary statistics is not specified in the BOI Law or in any other official provision. Coordination with the MOF, which forwards to the BOI statements from institutional investors, is good. Some clauses in the BOI Law empower the central bank to collect source data from commercial banks and provide for the confidentiality of data from individual providers. Resources There is some shortage of human resources for the compilation of monetary statistics. Financial and computer resources, as well as the premises, are adequate. There is scope for improving the cooperation between the various departments with regard to the design and timely updating of the BOI website for posting monetary statistics. Relevance Monetary statistics are adequate in meeting the data needs for the BOI’s inflation targeting monetary policy. No regular surveys or meetings on the needs of monetary statistics users outside the BOI are conducted. Specific requests on monetary statistics from users are not analyzed to improve the statistical program and dissemination formats. Other quality management There is a strong awareness of monetary statistics quality as a contribution to the effectiveness of monetary policy formulation. However, quality awareness is less observed, for instance, with regard to consistency of monetary statistics with other macroeconomic datasets or dissemination of monetary statistics.

Professionalism Legal provisions targeting all levels of staff within the BOI warrant that monetary statistics are produced on an impartial basis. The BOI promotes professionalism through support for research and analysis, publication of working papers, and participation in international conferences. However, to date no BOI staff has attended courses or seminars on monetary statistics offered by the IMF despite specific invitations to do so. Choices of sources and statistical techniques, as well as decisions about the dissemination of monetary statistics, are informed solely by statistical consideration. The current bias of these choices toward the inflation-targeting monetary regime needs to be better balanced by other policy considerations. The timely communication of the BOI to the public in the context of monetary policy decisions ensures that monetary statistics are correctly interpreted. Transparency The BOI Law lacks any mention of monetary statistics, and this is not compensated by specific information on the terms and conditions under which source data are collected and processed and monetary statistics are disseminated to the public. Government officials have no access to monetary statistics prior to their release to the public. On the CBS website, there is no indication that the BOI is the source for monetary statistics. Generally, the BOI provides advance notice of changes in methodology. Ethical standards Throughout the staff of the BOI, ethical standards are at the highest level. A series of guidelines for BOI staff behavior are set out in the BOI Law, the labor constitution regarding BOI employees, internal work procedures, and an information booklet for employees. In addition, provisions on secrecy under national penal law apply to BOI employees as well.

Table 3a.

Israel: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

Table 3a.

Israel: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CBS compiles the national accounts according to the conceptual framework of the 1993 SNA. Scope The CBS compiles all the tables and accounts recommended in the 1993 SNA. Income and capital accounts for all sectors have not yet been completed. Supply and use tables are currently being compiled in the framework of the national accounts. The delimitations of the economy and production boundary are largely defined in accordance with the 1993 SNA. The assets boundaries for tangible assets are only partly in line with the 1993 SNA recommendations. Classification/sectorization The CBS uses classifications and sectors derived from appropriate standards. Basis for recording In general, valuation for recording flows and stocks is largely in accordance with the 1993 SNA. Most transactions are recorded on an accrual basis, except part of taxes/subsidies and other expenditure in general government, which are recorded on a cash basis. The compilation of GDP at market prices deviates from international standards, as net taxes on imports are excluded from, and subsidies on exports are included in, GDP.	Source data Available sources are broadly adequate. A business register was completed in 2003 and is currently being updated. No survey of the detailed composition of intermediate input in the service industry exists. Sources for construction activities could be improved. A household expenditure survey (HES) is conducted annually. Household consumption expenditure is estimated partly based on HES and partly on other sources (different volume indicators). Government sources are sound. Administrative data on financial institutions are comprehensive. The available price indices are sound and sufficiently detailed, but the coverage should be expanded. Source data are, in most cases, consistent with the definitions, scope, and classifications required in the national accounts. Timeliness of the annual business surveys is inadequate. Assessment of source data Source data are adequately checked. Statistical techniques Statistical techniques are broadly sound. The use of outdated fixed coefficients is limited. Agricultural work-in-progress is not recorded. Double deflation is only partly used. Volume measures are chain-linked. Quarterly national accounts compilation techniques are sound. Assessment and validation of intermediate data and statistical outputs Validation procedures are extensive. Discrepancies between GDP by expenditure and GDP by production are only partly removed. The remaining discrepancy is explicitly shown on the production side (in current prices only). Revision studies Data on the scale, direction, and magnitude of revisions are examined and discussed in publications. Studies of long-term trends in the revision patterns are not undertaken on a regular basis.	Periodicity and timeliness Periodicity meets, and timeliness exceeds, SDDS requirements. Projections of GDP are published in October and revised in December for the current year. Estimates/ projections can be subject to substantial revisions from the first to the final version. Consistency The statistics are internally consistent. Time series according to 1993 SNA go back to 1995, while historic time series according to System of National Accounts 1968 are available for the period 1950 to 1995. The national accounts are consistent with balance of payments and government finance statistics. Revision policy and practice Periodic revisions follow a regular and transparent schedule. Preliminary estimates are clearly indicated in press releases and in metadata in CBS publications, but not in databases or in tables in hard-copy publications. The nature and effects of major revisions are explained in the statistical publications.	Data accessibility National accounts are published in a clear manner. Publications include extensive explanations and definitions. Different levels of details are distinguished in the publications and the database. Relevant series are published on a seasonally adjusted basis. National accounts are disseminated in a press release, and press conferences are held twice a year. The advance release calendar is strictly followed and data are made available to all users at the same time, with the exception that three official agencies receive the data one day in advance under embargo. Nonpublished data are made available on request for free or sometimes for a charge. Metadata accessibility A comprehensive description of the methodology is published in Current Briefing in Statistics, which is available on request for a charge and for free on the Internet. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. The CBS website includes information on publication prices and charging policy for nonpublished data.

View Table

Table 3a.

Israel: Assessment of Data Quality—Dimensions 2 to 5—National Accounts

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CBS compiles the national accounts according to the conceptual framework of the 1993 SNA. Scope The CBS compiles all the tables and accounts recommended in the 1993 SNA. Income and capital accounts for all sectors have not yet been completed. Supply and use tables are currently being compiled in the framework of the national accounts. The delimitations of the economy and production boundary are largely defined in accordance with the 1993 SNA. The assets boundaries for tangible assets are only partly in line with the 1993 SNA recommendations. Classification/sectorization The CBS uses classifications and sectors derived from appropriate standards. Basis for recording In general, valuation for recording flows and stocks is largely in accordance with the 1993 SNA. Most transactions are recorded on an accrual basis, except part of taxes/subsidies and other expenditure in general government, which are recorded on a cash basis. The compilation of GDP at market prices deviates from international standards, as net taxes on imports are excluded from, and subsidies on exports are included in, GDP.	Source data Available sources are broadly adequate. A business register was completed in 2003 and is currently being updated. No survey of the detailed composition of intermediate input in the service industry exists. Sources for construction activities could be improved. A household expenditure survey (HES) is conducted annually. Household consumption expenditure is estimated partly based on HES and partly on other sources (different volume indicators). Government sources are sound. Administrative data on financial institutions are comprehensive. The available price indices are sound and sufficiently detailed, but the coverage should be expanded. Source data are, in most cases, consistent with the definitions, scope, and classifications required in the national accounts. Timeliness of the annual business surveys is inadequate. Assessment of source data Source data are adequately checked. Statistical techniques Statistical techniques are broadly sound. The use of outdated fixed coefficients is limited. Agricultural work-in-progress is not recorded. Double deflation is only partly used. Volume measures are chain-linked. Quarterly national accounts compilation techniques are sound. Assessment and validation of intermediate data and statistical outputs Validation procedures are extensive. Discrepancies between GDP by expenditure and GDP by production are only partly removed. The remaining discrepancy is explicitly shown on the production side (in current prices only). Revision studies Data on the scale, direction, and magnitude of revisions are examined and discussed in publications. Studies of long-term trends in the revision patterns are not undertaken on a regular basis.	Periodicity and timeliness Periodicity meets, and timeliness exceeds, SDDS requirements. Projections of GDP are published in October and revised in December for the current year. Estimates/ projections can be subject to substantial revisions from the first to the final version. Consistency The statistics are internally consistent. Time series according to 1993 SNA go back to 1995, while historic time series according to System of National Accounts 1968 are available for the period 1950 to 1995. The national accounts are consistent with balance of payments and government finance statistics. Revision policy and practice Periodic revisions follow a regular and transparent schedule. Preliminary estimates are clearly indicated in press releases and in metadata in CBS publications, but not in databases or in tables in hard-copy publications. The nature and effects of major revisions are explained in the statistical publications.	Data accessibility National accounts are published in a clear manner. Publications include extensive explanations and definitions. Different levels of details are distinguished in the publications and the database. Relevant series are published on a seasonally adjusted basis. National accounts are disseminated in a press release, and press conferences are held twice a year. The advance release calendar is strictly followed and data are made available to all users at the same time, with the exception that three official agencies receive the data one day in advance under embargo. Nonpublished data are made available on request for free or sometimes for a charge. Metadata accessibility A comprehensive description of the methodology is published in Current Briefing in Statistics, which is available on request for a charge and for free on the Internet. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. The CBS website includes information on publication prices and charging policy for nonpublished data.

Table 3b.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

Table 3b.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CPI follows the 1993 SNA household consumption concept and uses sufficiently detailed expenditure data from annual HES. Scope The scope is broadly consistent with international standards. Urban and nonurban households are included. Differences from the 1993 SNA household expenditure concept are kept under review. Classification/sectorization In the CPI basket, goods and services are classified by branch and economic activity similar to Central Product Classification (CPC) and aggregated to subgroups and groups very similar to Classification of Individual Consumption by Purpose. Basis for recording The valuation rules used in the HES are consistent with the 1993 SNA. Actual cash transaction prices that reflect the conditions of sale at the time of purchase are collected monthly.	Source data Well-conducted annual HES is used for the CPI weights, and some 60,000 monthly prices from 3,000 outlets collected for the index provide a good basis for accurate series even at the detailed level. Assessment of source data The assessment and validation process takes into account the various stages of data collection, editing, and compilation. Validation is well implemented and documented and further used to guide the statistical process to assure production of high-quality statistics. Statistical techniques Generally, international statistical technical guidelines are followed rigorously. However, some item indices would benefit from research in alternative quality adjustment methods, such as use of hedonic regression analysis. Also, the method for owner-occupied housing leaves room for uncontrolled qualitative characteristics to influence measures of month-to-month price changes. Assessment and validation of intermediate data and statistical outputs The CPI division’s specialists analyze every item index to ensure that movements are consistent against other information about commodity and retail markets, including other relevant price indices. Revision studies The CPI series are not revised. Weight revisions are studied every two years, and information on changes is disseminated to the public.	Periodicity and timeliness The CPI is compiled monthly and disseminated 15 days after the end of the reference month. Although CPI statistics already exceed the SDDS requirement for timeliness, they could be advanced even further to better meet users’ needs. Consistency Long-time series are maintained along with the current index using linking factors. Revision policy and practice The data are final when first released and are not subject to revision.	Data accessibility Generally, the CPI publication, Price Statistics Monthly, is clear and provides various levels of detail including short- and long-term index changes and is provided also on the CBS website, accompanying a press release. The CBS website that is being developed currently provides detailed explanations in Hebrew only. Metadata accessibility A comprehensive methodology is published in the technical series publication No. 60, Consumer Price Index, which is available also in English. Overall metadata accessibility is very good, and the DSBB is updated regularly. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. The CBS website includes information on publication prices and charging policy for nonpublished data.

View Table

Table 3b.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Consumer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CPI follows the 1993 SNA household consumption concept and uses sufficiently detailed expenditure data from annual HES. Scope The scope is broadly consistent with international standards. Urban and nonurban households are included. Differences from the 1993 SNA household expenditure concept are kept under review. Classification/sectorization In the CPI basket, goods and services are classified by branch and economic activity similar to Central Product Classification (CPC) and aggregated to subgroups and groups very similar to Classification of Individual Consumption by Purpose. Basis for recording The valuation rules used in the HES are consistent with the 1993 SNA. Actual cash transaction prices that reflect the conditions of sale at the time of purchase are collected monthly.	Source data Well-conducted annual HES is used for the CPI weights, and some 60,000 monthly prices from 3,000 outlets collected for the index provide a good basis for accurate series even at the detailed level. Assessment of source data The assessment and validation process takes into account the various stages of data collection, editing, and compilation. Validation is well implemented and documented and further used to guide the statistical process to assure production of high-quality statistics. Statistical techniques Generally, international statistical technical guidelines are followed rigorously. However, some item indices would benefit from research in alternative quality adjustment methods, such as use of hedonic regression analysis. Also, the method for owner-occupied housing leaves room for uncontrolled qualitative characteristics to influence measures of month-to-month price changes. Assessment and validation of intermediate data and statistical outputs The CPI division’s specialists analyze every item index to ensure that movements are consistent against other information about commodity and retail markets, including other relevant price indices. Revision studies The CPI series are not revised. Weight revisions are studied every two years, and information on changes is disseminated to the public.	Periodicity and timeliness The CPI is compiled monthly and disseminated 15 days after the end of the reference month. Although CPI statistics already exceed the SDDS requirement for timeliness, they could be advanced even further to better meet users’ needs. Consistency Long-time series are maintained along with the current index using linking factors. Revision policy and practice The data are final when first released and are not subject to revision.	Data accessibility Generally, the CPI publication, Price Statistics Monthly, is clear and provides various levels of detail including short- and long-term index changes and is provided also on the CBS website, accompanying a press release. The CBS website that is being developed currently provides detailed explanations in Hebrew only. Metadata accessibility A comprehensive methodology is published in the technical series publication No. 60, Consumer Price Index, which is available also in English. Overall metadata accessibility is very good, and the DSBB is updated regularly. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. The CBS website includes information on publication prices and charging policy for nonpublished data.

Table 3c.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Producer Price Index

Table 3c.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Producer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The Wholesale Price Index of Industrial Output for the Domestic Market (WPI) measures the developments in output prices for a fixed set of products, during the first stage of marketing in Israel. The concepts and definitions broadly conform to international guidelines. The CBS also compiles input price indices for residential buildings, road construction, and agriculture that generally follow the guidelines of the Producer Price Index Manual, 2004 (PPI Manual). Scope Although the WPI statistics cover the core manufacturing and mining activities for domestic use, the very minimum recommended by the PPI Manual, the coverage could be increased into services activities and the export sector so as to provide a more comprehensive index coverage. The survey covers production for the domestic market, or about 65 percent of total production in manufacturing activities. Classification/sectorization The goods and services are classified according to the CPC and establishments classified by the national adaptation of the International Standard Industrial Classification for all economic activities. Basis for recording Market prices are used in the valuation of weights and in the price survey. The prices refer to those actually paid by the purchaser “ex factory gate.” However, the market prices and valuation for well-specified transactions are net transaction prices (after discount and credits) and include all taxes (also value-added tax), which is not recommended by the PPI Manual.	Source data The price data collected are generally sufficiently detailed to derive the WPIs at the 2-digit activity level and 4-digit product level for covered activities. The weights for the current indices were obtained from annual summaries of monthly manufacturing surveys of 1993/94. As such, they need to be updated. Monthly price collection covers about 4,200 price quotes for some 1,800 types of products. Assessment of source data The software used with prices collected in Computer Assisted Telephone Interviews performs logical and statistical checks. Processes are in place to assess and validate the data used for the compilation of WPI statistics. Statistical techniques Generally, international statistical methodological guidelines are followed. However, a few shortcomings remain in the use of input prices instead of market prices. Methods to account for quality change rely on imputation instead of explicit quality adjustment techniques. Also, the elementary index uses arithmetic means, instead of the preferred geometric means (also on Table 3b). Assessment and validation of intermediate data and statistical outputs Staff verifies the prices against other sources when available. Unusual movements are explained in the publication. Revision studies The WPI series are not revised. The weight adjustments within activities are not investigated.	Periodicity and timeliness The WPI is compiled monthly and disseminated 15 days after the end of the reference month, meeting SDDS requirements. Consistency Long time series are maintained along with the current index using linking factors. Revision policy and practice The data are final when first released and are not subject to revision. No clear policy on weight revisions is followed.	Data accessibility Generally, the WPI publication, Price Statistics Monthly, is clear and provides various levels of detail, including short- and long-term index changes, and is provided also on the CBS website, accompanying a press release. The CBS website that is being developed currently provides detailed explanations in Hebrew only. Metadata accessibility A description of the index methodology is included in Price Statistics Monthly No. 1, 1995, available in Hebrew, but not in English. More detailed metadata should be disseminated on the CBS website. Metadata on the DSBB are updated regularly. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. The CBS website includes information on publication prices and charging policy for nonpublished data.

View Table

Table 3c.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Producer Price Index

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The Wholesale Price Index of Industrial Output for the Domestic Market (WPI) measures the developments in output prices for a fixed set of products, during the first stage of marketing in Israel. The concepts and definitions broadly conform to international guidelines. The CBS also compiles input price indices for residential buildings, road construction, and agriculture that generally follow the guidelines of the Producer Price Index Manual, 2004 (PPI Manual). Scope Although the WPI statistics cover the core manufacturing and mining activities for domestic use, the very minimum recommended by the PPI Manual, the coverage could be increased into services activities and the export sector so as to provide a more comprehensive index coverage. The survey covers production for the domestic market, or about 65 percent of total production in manufacturing activities. Classification/sectorization The goods and services are classified according to the CPC and establishments classified by the national adaptation of the International Standard Industrial Classification for all economic activities. Basis for recording Market prices are used in the valuation of weights and in the price survey. The prices refer to those actually paid by the purchaser “ex factory gate.” However, the market prices and valuation for well-specified transactions are net transaction prices (after discount and credits) and include all taxes (also value-added tax), which is not recommended by the PPI Manual.	Source data The price data collected are generally sufficiently detailed to derive the WPIs at the 2-digit activity level and 4-digit product level for covered activities. The weights for the current indices were obtained from annual summaries of monthly manufacturing surveys of 1993/94. As such, they need to be updated. Monthly price collection covers about 4,200 price quotes for some 1,800 types of products. Assessment of source data The software used with prices collected in Computer Assisted Telephone Interviews performs logical and statistical checks. Processes are in place to assess and validate the data used for the compilation of WPI statistics. Statistical techniques Generally, international statistical methodological guidelines are followed. However, a few shortcomings remain in the use of input prices instead of market prices. Methods to account for quality change rely on imputation instead of explicit quality adjustment techniques. Also, the elementary index uses arithmetic means, instead of the preferred geometric means (also on Table 3b). Assessment and validation of intermediate data and statistical outputs Staff verifies the prices against other sources when available. Unusual movements are explained in the publication. Revision studies The WPI series are not revised. The weight adjustments within activities are not investigated.	Periodicity and timeliness The WPI is compiled monthly and disseminated 15 days after the end of the reference month, meeting SDDS requirements. Consistency Long time series are maintained along with the current index using linking factors. Revision policy and practice The data are final when first released and are not subject to revision. No clear policy on weight revisions is followed.	Data accessibility Generally, the WPI publication, Price Statistics Monthly, is clear and provides various levels of detail, including short- and long-term index changes, and is provided also on the CBS website, accompanying a press release. The CBS website that is being developed currently provides detailed explanations in Hebrew only. Metadata accessibility A description of the index methodology is included in Price Statistics Monthly No. 1, 1995, available in Hebrew, but not in English. More detailed metadata should be disseminated on the CBS website. Metadata on the DSBB are updated regularly. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. The CBS website includes information on publication prices and charging policy for nonpublished data.

Table 3d.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

Table 3d.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CBS compiles and disseminates annual general government statistics in the context of national accounts based on the 1993 SNA. The CBS’s government finance statistics are not presented as a distinct statistical output in a comprehensive fiscal analytical framework, but plans to follow the GFSM 2001 (in national presentations) are advancing. Scope Annual general government statistics have full coverage of all government subsectors. All material government activities are included in the statistics. For general government, the CBS publishes a balance sheet for financial assets and liabilities and for nonfinancial assets (in the context of national accounts). Central government operations and debt data are disseminated by the MOF on a monthly and quarterly basis, respectively, but do not fully cover all extrabudgetary units and nonprofit institutions (NPIs). Classification/sectorization The CBS’s classifications are in accordance with the national accounts and the detailed revenue and expense classification of the GFSM 2001. The sectorization of the general government is consistent with the GFSM 2001. Basis for recording Generally, flows and stocks are valued at market prices. Transactions are recorded on either a mixed cash and/or accrual basis and, where necessary, adjusted to accrual to the extent possible. Debt is recorded at nominal values. Grossing/netting procedures are appropriate.	Source data The source data on general government have deficiencies vis-à-vis the scope, definitions, and the classifications required for government finance statistics compilation and could usefully be brought into closer conformity with international guidelines. These are largely accounting data received from the MOF, the extrabudgetary funds and the NPIs, the social security scheme, and the local authorities. The data are adjusted and reclassified, where necessary, by the CBS in the national accounts context and according to the GFSM 2001. The source data provide the CBS with all the necessary stock and flow data (except for some on the nonfinancial and financial accounts). Financial accounts are not timely apart from budgetary central government. Assessment of source data The final source data are, to the greatest extent possible, based on audited accounts for all general government institutions. Statistical techniques The CBS makes estimates in compiling the data on the local government and the extrabudgetary sectors and in the preparation of the annual preliminary data for the general government sector. The techniques used are sound. Assessment and validation of intermediate data and statistical outputs All tables are checked for internal consistency. Revision studies The reliability of the statistics is assessed, internally, on a regular basis.	Periodicity and timeliness The SDDS requirements are met. Consistency Statistics are internally consistent for most of the accounts, even though some discrepancies occur in the underlying sources. The discrepancy between net lending/borrowing and financing is difficult to assess given deficiencies in the financial accounts. For the financial accounts, the differences between the opening and closing balance sheet for each asset and liability category, and the net transactions and other net economic flows, are not yet fully reconciled, because of a lag in securing data on other economic flows. Reported transfers received equal reported transfers paid between subsectors of the general government. Data are consistent with the national accounts, as well as the monetary statistics. Ongoing work by the MOF under the multifaceted “Merkava” project should greatly improve the consistency of fiscal aggregates for compiling the budgetary central government accounts on an accrual basis. Revision policy and practice Periodic revisions follow a regular and transparent schedule (in the context of national accounts). Users are informed of these revisions when the data are disseminated. The general government accounts are revised on an annual basis for use as an input in compiling the GFSM 2001 aggregates and balances.	Data accessibility The general government account data facilitate proper and meaningful interpretation within the national accounts framework. They are not presented in a way that allows major revenue and expenditure aggregates and balancing items to be identified and related to detailed underlying data, as is the case in of the GFSM 2001 framework. Metadata accessibility For the general government and its subsectors, metadata are provided on annual government operations, financing, and debt in publications and on the Internet. Metadata on sources and methods are provided (in the context of national accounts) but could be usefully expanded for the data compiled using the GFSM 2001 framework. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and its prices, is published. The CBS’s website includes information on publication prices and charging policy for nonpublished data.

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Table 3d.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Government Finance Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The CBS compiles and disseminates annual general government statistics in the context of national accounts based on the 1993 SNA. The CBS’s government finance statistics are not presented as a distinct statistical output in a comprehensive fiscal analytical framework, but plans to follow the GFSM 2001 (in national presentations) are advancing. Scope Annual general government statistics have full coverage of all government subsectors. All material government activities are included in the statistics. For general government, the CBS publishes a balance sheet for financial assets and liabilities and for nonfinancial assets (in the context of national accounts). Central government operations and debt data are disseminated by the MOF on a monthly and quarterly basis, respectively, but do not fully cover all extrabudgetary units and nonprofit institutions (NPIs). Classification/sectorization The CBS’s classifications are in accordance with the national accounts and the detailed revenue and expense classification of the GFSM 2001. The sectorization of the general government is consistent with the GFSM 2001. Basis for recording Generally, flows and stocks are valued at market prices. Transactions are recorded on either a mixed cash and/or accrual basis and, where necessary, adjusted to accrual to the extent possible. Debt is recorded at nominal values. Grossing/netting procedures are appropriate.	Source data The source data on general government have deficiencies vis-à-vis the scope, definitions, and the classifications required for government finance statistics compilation and could usefully be brought into closer conformity with international guidelines. These are largely accounting data received from the MOF, the extrabudgetary funds and the NPIs, the social security scheme, and the local authorities. The data are adjusted and reclassified, where necessary, by the CBS in the national accounts context and according to the GFSM 2001. The source data provide the CBS with all the necessary stock and flow data (except for some on the nonfinancial and financial accounts). Financial accounts are not timely apart from budgetary central government. Assessment of source data The final source data are, to the greatest extent possible, based on audited accounts for all general government institutions. Statistical techniques The CBS makes estimates in compiling the data on the local government and the extrabudgetary sectors and in the preparation of the annual preliminary data for the general government sector. The techniques used are sound. Assessment and validation of intermediate data and statistical outputs All tables are checked for internal consistency. Revision studies The reliability of the statistics is assessed, internally, on a regular basis.	Periodicity and timeliness The SDDS requirements are met. Consistency Statistics are internally consistent for most of the accounts, even though some discrepancies occur in the underlying sources. The discrepancy between net lending/borrowing and financing is difficult to assess given deficiencies in the financial accounts. For the financial accounts, the differences between the opening and closing balance sheet for each asset and liability category, and the net transactions and other net economic flows, are not yet fully reconciled, because of a lag in securing data on other economic flows. Reported transfers received equal reported transfers paid between subsectors of the general government. Data are consistent with the national accounts, as well as the monetary statistics. Ongoing work by the MOF under the multifaceted “Merkava” project should greatly improve the consistency of fiscal aggregates for compiling the budgetary central government accounts on an accrual basis. Revision policy and practice Periodic revisions follow a regular and transparent schedule (in the context of national accounts). Users are informed of these revisions when the data are disseminated. The general government accounts are revised on an annual basis for use as an input in compiling the GFSM 2001 aggregates and balances.	Data accessibility The general government account data facilitate proper and meaningful interpretation within the national accounts framework. They are not presented in a way that allows major revenue and expenditure aggregates and balancing items to be identified and related to detailed underlying data, as is the case in of the GFSM 2001 framework. Metadata accessibility For the general government and its subsectors, metadata are provided on annual government operations, financing, and debt in publications and on the Internet. Metadata on sources and methods are provided (in the context of national accounts) but could be usefully expanded for the data compiled using the GFSM 2001 framework. Assistance to users User support is excellent. A comprehensive catalog, detailing how to obtain a product or service, and its prices, is published. The CBS’s website includes information on publication prices and charging policy for nonpublished data.

Table 3e.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

Table 3e.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The overall structure of monetary statistics does not follow concepts and definitions set out in the MFSM. Monetary statistics are not presented in the form of surveys with balanced assets and liabilities. Scope The scope of monetary statistics covers the BOI (central bank) and commercial banks (other depository corporations). Money market mutual funds are not covered. (Checks cannot be written on mutual funds in Israel; however, there is a report to the public on mutual funds.) One credit aggregate includes loans obtained by resident nonfinancial corporations from nonresident banks, while monetary statistics are deemed to cover transactions of resident financial institutions only. Classification/sectorization Classification of financial assets and sectorization of the economy recommended by the MSFM are not applied. Monetary statistics are overly aggregated. Basis for recording Stocks are valued at market prices, and fair value is being implemented where applicable. The BOI and commercial banks apply accrual accounting. Loans are reported net of specific provisions for loan losses.	Source data Source data are comprehensive since all depository corporations report monthly to the BOI, but essential information, such as breakdowns that would permit better sectorization of the economy, are missing. Assessment of source data Accuracy of source data reported by commercial banks is checked on an ongoing basis by the BOI’s Banking Supervision Department. Statistical techniques Some data series are seasonally adjusted through well-established techniques. Assessment and validation of intermediate data and statistical outputs In the absence of comprehensive sectoral surveys, standard checks usually applied to intermediate and statistical outputs in monetary statistics cannot be undertaken. Revision studies Monetary statistics are not subject to formal revision cycles since most data are deemed final when released.	Periodicity and timeliness Periodicity of monetary statistics meets SDDS requirements for dissemination while timeliness has been problematic, especially for central bank accounts. Consistency In the absence of comprehensive sectoral surveys, standard checks usually applied to statistical outputs in monetary statistics cannot be undertaken. Monetary statistics are available in the form of time series over a long period; thus, they are reconcilable and show consistency over time. Foreign assets and foreign liabilities for commercial banks are identical to those in the international investment position because the latter are directly applied to monetary statistics. Net position of the government in monetary statistics is broadly consistent with bank financing in government finance statistics. Changes in net foreign assets of depository corporations are not assessed against corresponding transactions in the balance of payments statistics. Revision policy and practice There is no need for a regular and permanent revision schedule.	Data accessibility Monetary statistics are not presented in the form of comprehensive surveys. Instead, each major aggregate or component is presented at an overly aggregated level without a clear heading that would facilitate direct and immediate access to users. The preannounced schedule for the release of monetary statistics to the public is not posted on the BOI website, but on the CBS and DSBB websites only. Monetary statistics are made available to all users at the same time. Some nonpublished detailed data series are available upon request to the BOI. Metadata accessibility A summary methodological notice is posted on the DSBB, but is neither posted on the BOI website nor included in the publications of the BOI. Methodological notices are not adapted to the needs of different audiences. Assistance to users The name of a contact person for monetary statistics is posted on the DSBB, but not in the BOI’s own dissemination media. A catalog of publications is available.

View Table

Table 3e.

Israel: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics

2. Methodological soundness	3. Accuracy and reliability	4. Serviceability	5. Accessibility
Concepts and definitions The overall structure of monetary statistics does not follow concepts and definitions set out in the MFSM. Monetary statistics are not presented in the form of surveys with balanced assets and liabilities. Scope The scope of monetary statistics covers the BOI (central bank) and commercial banks (other depository corporations). Money market mutual funds are not covered. (Checks cannot be written on mutual funds in Israel; however, there is a report to the public on mutual funds.) One credit aggregate includes loans obtained by resident nonfinancial corporations from nonresident banks, while monetary statistics are deemed to cover transactions of resident financial institutions only. Classification/sectorization Classification of financial assets and sectorization of the economy recommended by the MSFM are not applied. Monetary statistics are overly aggregated. Basis for recording Stocks are valued at market prices, and fair value is being implemented where applicable. The BOI and commercial banks apply accrual accounting. Loans are reported net of specific provisions for loan losses.	Source data Source data are comprehensive since all depository corporations report monthly to the BOI, but essential information, such as breakdowns that would permit better sectorization of the economy, are missing. Assessment of source data Accuracy of source data reported by commercial banks is checked on an ongoing basis by the BOI’s Banking Supervision Department. Statistical techniques Some data series are seasonally adjusted through well-established techniques. Assessment and validation of intermediate data and statistical outputs In the absence of comprehensive sectoral surveys, standard checks usually applied to intermediate and statistical outputs in monetary statistics cannot be undertaken. Revision studies Monetary statistics are not subject to formal revision cycles since most data are deemed final when released.	Periodicity and timeliness Periodicity of monetary statistics meets SDDS requirements for dissemination while timeliness has been problematic, especially for central bank accounts. Consistency In the absence of comprehensive sectoral surveys, standard checks usually applied to statistical outputs in monetary statistics cannot be undertaken. Monetary statistics are available in the form of time series over a long period; thus, they are reconcilable and show consistency over time. Foreign assets and foreign liabilities for commercial banks are identical to those in the international investment position because the latter are directly applied to monetary statistics. Net position of the government in monetary statistics is broadly consistent with bank financing in government finance statistics. Changes in net foreign assets of depository corporations are not assessed against corresponding transactions in the balance of payments statistics. Revision policy and practice There is no need for a regular and permanent revision schedule.	Data accessibility Monetary statistics are not presented in the form of comprehensive surveys. Instead, each major aggregate or component is presented at an overly aggregated level without a clear heading that would facilitate direct and immediate access to users. The preannounced schedule for the release of monetary statistics to the public is not posted on the BOI website, but on the CBS and DSBB websites only. Monetary statistics are made available to all users at the same time. Some nonpublished detailed data series are available upon request to the BOI. Metadata accessibility A summary methodological notice is posted on the DSBB, but is neither posted on the BOI website nor included in the publications of the BOI. Methodological notices are not adapted to the needs of different audiences. Assistance to users The name of a contact person for monetary statistics is posted on the DSBB, but not in the BOI’s own dissemination media. A catalog of publications is available.

12. With the assistance of the authorities—and to complement the Fund’s assessment of the quality of official statistics produced by Israel—the mission conducted an informal survey of key users of macroeconomic statistics. Questionnaires were sent to 40 users with 18 responses received from academics, banks, public and private sector analysts, and consulting companies. Users were asked to evaluate the coverage, periodicity, timeliness, dissemination practices, accessibility, and overall quality of the official statistics.

13. Data users informed the mission that there had been recent improvements in data production and dissemination, particularly in the CBS website and the bureau’s timely responses to inquiries. However, they noted that there was room to improve the BOI and the MOF websites and the two agencies’ services in response to inquiries. They were also concerned about the scope and dissemination of monetary as well as the MOF’s central government tax and expenditure data, the timeliness of the consumer price index (CPI) and other real sector data, the lack of good-quality data on some service industries, and the large revisions in national accounts, including trade statistics. There was also a widespread view that, given the substantial ongoing transformation of the Israeli economy, the CBS faced a daunting task to cope with the growing statistical demands, exacerbated by severe manpower and financial budget constraints. Respondents also indicated that while ad hoc funding arrangements with various national institutions had alleviated some of these constraints, the situation was not sustainable without a longer-term solution.

III. Staff’s Recommendations

14. Based on the review of Israel’s statistical practices, discussions with the data-producing agencies, and responses from data users (see Appendix III of the Detailed Assessments volume), the mission has a set of recommendations. They are designed to increase further Israel’s adherence to internationally accepted statistical practices and would, in the mission’s view, enhance the analytical usefulness of Israel’s statistics. Some additional technical suggestions are included in the Detailed Assessments volume.