I. Overall Assessment

1. Italy subscribed to the SDDS on August 13, 1996 and started posting its metadata on the Dissemination Standards Bulletin Board (DSBB) on September 19, 1996. Italy is in observance of the Special Data Dissemination Standard (SDDS), meeting the specifications for coverage, periodicity, timeliness, and the dissemination of advance release calendars. To meet its dissemination requirements under the standard, Italy uses two flexibility options, namely for the timeliness of data on central government operations and production indices. The Appendix provides an overview of Italy’s dissemination practices compared to the SDDS.

2. This Report on the Observance of Standards and Codes (ROSC) data module covers the national accounts, the consumer price index (CPI), the producer price index (PPI), and the government finance statistics (GFS). For these datasets, the report constitutes an update of the data module for Italy conducted in 2002 that, in addition, covered the monetary and the balance of payments statistics.

3. One of the main findings of this report, in comparison with the situation in 2002, is that Istat has the primary responsibility for the dissemination of general government statistics to the public. This is consistent with Istat having established and still chairing a formal interagency working group—made up of Istat, the Ministry of Finance (MEF), and the Bank of Italy (BI)—to enhance the consistency of the GFS produced by these agencies, and Istat transmitting the general government statistics to Eurostat. The responsibility for compiling and disseminating a comprehensive and integrated set of general government statistics remains to be specified. In doing so, it would be useful to preserve the valuable interagency data cross–checking, a trademark of the Italian GFS statistics, by maintaining each agency’s responsibilities for the separate components. A further noteworthy improvement since 2002 is the benchmark revision of the national accounts, which was successfully implemented in spite of continuing severe strains on staff resources. With regard to the CPI, innovative development work is well advanced on implementing random sampling techniques and the price collection period has been adjusted to fully reflect the reference month.

4. Section II provides a summary assessment by agency and dataset, based on a four–part scale. This is followed by staff recommendations in Section III. The Appendix summarizes Italy’s practices compared with the SDDS. The authorities’ response to this report and an annex with detailed assessments are presented in separate documents.

5. The remainder of this section presents the mission’s main conclusions using the IMF’s Data Quality Assessment Framework (DQAF), July 2003.

6. Prerequisites of quality: The Italian data–producing agencies rely on a legal and institutional framework that supports the quality of the datasets assessed in this report except for the GFS where the responsibility for compiling and disseminating a comprehensive and integrated set of general government statistics remains to be specified. Resources are broadly commensurate with the existing statistical programs of the data categories under review, with the exception of the National Accounts Directorate of Istat. The staff in the Directorate is well qualified and highly motivated but their number is insufficient to deal with the considerable expansion of work in both the GFS and the national accounts.

7. Assurance of integrity: All agencies demonstrate professionalism, are transparent in their practices, and provide guidelines on ethical conduct to their staff.

8. Methodological soundness: All four datasets reviewed follow internationally accepted guidelines in terms of concepts and definitions, classification and sectorization, and basis of valuation. However, the scope of the national CPI could be improved by including the services of owner–occupied dwellings as articulated in the Consumer Price Index Manual, and the GFS are yet to be presented in the integrated and comprehensive set of statements for general government of the Government Finance Statistics Manual 2001 (GFSM 2001).

9. Accuracy and reliability: The 2005 revision of the national accounts changed the benchmark year from 1992 to 2000, revised the calculation and allocation of financial services indirectly measured (FISIM), improved many compilation methods and introduced chained volume and price measures (work is still ongoing on a few series). However, the estimates are affected by certain weaknesses that remain regarding the data sources. Sound data sources and techniques are used to compile the CPI. The PPI has been rebased from 1995 to 2000 but there is scope to improve some of the statistical techniques and the weighting data sources. The consistency of various components of the GFS has been enhanced through better interagency coordination. The validation process at Istat is constrained by important time lags in assessing the economic nature of transactions and practices that limit revisions to the published aggregates. This may lead to inconsistencies with the GFS component that is under the responsibility of the BI.

10. Serviceability: The Italian datasets fully conform to the periodicity and timeliness requirements of the SDDS with the exception of the timeliness of data on monthly central government operations and the production indices, for which flexibility options are taken. In fact, Italy exceeds the SDDS requirements in key areas such as the CPI (which has a timeliness of 15 days versus the SDDS requirement of 30 days) and the GFS (quarterly estimates on both an accrual and cash bases versus a SDDS annual periodicity on a cash or accrual requirements). As well, in addition to the SDDS required quarterly central government debt data published by the MEF, the BI also publishes monthly government debt data. Data are consistent and revision policies are sound although practices could be improved in certain areas, such as identifying revised data and providing more details on GFS revisions.

11. Accessibility: All four datasets are readily available to the public and are accompanied by suitable, comprehensive documentation on concepts, scope, classification, basis of recording, data sources, and statistical techniques. Serviceability to users is adequate, including clear identification of contact persons in all Istat releases.

II. Assessment by Agency and Dataset

12. The assessment of the quality of four macroeconomic datasets—national accounts, CPI, PPI, and GFS—was conducted using the July 2003 version of the DQAF (a refinement of the 2001 version that was used for the 2002 data module ROSC). In this section, the results are presented at the level of the DQAF elements, making use of a four–point rating scale (Table 1). Tables 2a-b present the staff’s assessments regarding the Prerequisites of data quality and Assurances of integrity (dimensions “0” and “1” of the DQAF). Tables 3a-d show, for each dataset, the assessments of Methodological soundness, Accuracy and reliability, Serviceability, and Accessibility (dimensions “2” through “5” of the DQAF).

Table 1.

Italy: 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.

Italy: 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
Dimensions/Elements
0. Prerequisites of quality
0.1 Legal and institutional environment	O	O	O	LO
0.2 Resources	LO	O	O	LO
0.3 Relevance	O	O	O	O
0.4 Other quality management	O	O	O	O
1. Assurances of integrity
1.1 Professionalism	O	O	O	O
1.2 Transparency	O	O	O	O
1.3 Ethical standards	O	O	O	O
2. Methodological soundness
2.1 Concepts and definitions	O	O	O	LO
2.2 Scope	O	LO	O	O
2.3 Classification/sectorization	O	O	O	O
2.4 Basis for recording	O	O	O	O
3. Accuracy and reliability
3.1 Source data	LO	O	LO	O
3.2 Assessment of source data	O	O	O	O
3.3 Statistical techniques	O	O	LO	O
3.4 Assessment and validation of intermediate data and statistical outputs	O	O	O	LO
3.5 Revision studies	O	O	O	O
4. Serviceability
4.1 Periodicity and timeliness	O	O	O	LO
4.2 Consistency	O	O	O	O
4.3 Revision policy and practice	O	O	O	LO
5. Accessibility
5.1 Data accessibility	O	O	O	O
5.2 Metadata accessibility	O	O	O	O
5.3 Assistance to users	O	O	O	O

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.

Italy: 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
Dimensions/Elements
0. Prerequisites of quality
0.1 Legal and institutional environment	O	O	O	LO
0.2 Resources	LO	O	O	LO
0.3 Relevance	O	O	O	O
0.4 Other quality management	O	O	O	O
1. Assurances of integrity
1.1 Professionalism	O	O	O	O
1.2 Transparency	O	O	O	O
1.3 Ethical standards	O	O	O	O
2. Methodological soundness
2.1 Concepts and definitions	O	O	O	LO
2.2 Scope	O	LO	O	O
2.3 Classification/sectorization	O	O	O	O
2.4 Basis for recording	O	O	O	O
3. Accuracy and reliability
3.1 Source data	LO	O	LO	O
3.2 Assessment of source data	O	O	O	O
3.3 Statistical techniques	O	O	LO	O
3.4 Assessment and validation of intermediate data and statistical outputs	O	O	O	LO
3.5 Revision studies	O	O	O	O
4. Serviceability
4.1 Periodicity and timeliness	O	O	O	LO
4.2 Consistency	O	O	O	O
4.3 Revision policy and practice	O	O	O	LO
5. Accessibility
5.1 Data accessibility	O	O	O	O
5.2 Metadata accessibility	O	O	O	O
5.3 Assistance to users	O	O	O	O

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.

Italy: Assessment of Data Quality—Dimensions 0 and 1—Istat

Table 2a.

Italy: Assessment of Data Quality—Dimensions 0 and 1—Istat

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment Istat is at the center of the National Statistical System (SISTAN) under Legislative Decree No. 322/1989. It is responsible, among other things, for the national accounts, the CPI, and PPI. At the time of the 2002 ROSC data module, the overall responsibility for GFS was not clearly established. It is now clear that Istat has the primary responsibility for disseminating GFS on the general government to the public, although the responsibility for producing the integrated set of statistics remains to be specified. (See Table 2b for more details). Legislative Decree No. 322/1989 and subsequent legislation, especially the legislation under which Istat was reorganized in 2000, provides a sound legal and institutional environment for Istat’s activities, supports data sharing and coordination among statistics producing agencies, calls for protection of the confidentiality of individual responses, and contains legal provisions for statistical reporting, including the identification of surveys with mandatory reporting. The statistical environment was further strengthened in 2003 with the adoption of legislation on the protection of personal data. Resources The staff resources of the National Accounts Directorate continue to be under pressure in meeting the statistical requirements of users, notably the European Union (EU) and the Economic and Monetary Union (EMU). Istat indicated that financial (and legal) constraints pose some limits to human resources management. Staff resources to compile the price indices are adequate. Computer resources are generally adequate. The progressive introduction of hand-held computers for consumer price collection in the municipalities, as recommended in the 2002 ROSC data module report, is scheduled for completion in 2007, and is significantly improving the efficiency and accuracy of data collection. Relevance The preparation of the National Statistical Program provides a framework for addressing the relevance of Istat’s statistical series. Istat maintains regular contacts with users through focus groups and users’ surveys to gauge the relevance of its products. The staff also participate in meetings of groups where users are represented, including those organized by the EU and the EMU. Other quality management Istat demonstrates a high sense of quality awareness, as evidenced by the “Overview of Quality Measures Adopted” in the 2001 Italian Statistical Yearbook. The existence of an independent oversight body in the form of the Guarantee on Statistical Information Commission, the Quality Circles that participate in formulating and tracking the National Statistical Program, and the Information System for Survey Documentation and Quality Control are among the processes put in place to monitor quality and to deal with quality considerations.

Professionalism Istat, supported by its designation as a research entity, maintains a high degree of professionalism. All evidence shows that statistics are compiled on an impartial basis. Choices of sources and statistical techniques are informed by statistical considerations at the national and European levels. Commenting on misuse of statistics is an explicit part of Istat’s communication strategy. Istat also actively promotes statistical literacy. Transparency Transparency of statistical policies and practices is promoted, inter alia, by the wide dissemination of the terms and conditions under which Istat works, easy access to the National Statistical Program, the identification of Istat’s products, and the practice of providing advance notice of major changes in methodology. The 2006 budget documentation introduced a proposal that the Guarantee of Statistical Information Commission should report directly to Parliament. A more recent draft bill proposes that this Commission report to the President and expands the Commission’s resources. Ethical standards Guidelines on the ethical standards expected of Istat staff are in place.

View Table

Table 2a.

Italy: Assessment of Data Quality—Dimensions 0 and 1—Istat

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment Istat is at the center of the National Statistical System (SISTAN) under Legislative Decree No. 322/1989. It is responsible, among other things, for the national accounts, the CPI, and PPI. At the time of the 2002 ROSC data module, the overall responsibility for GFS was not clearly established. It is now clear that Istat has the primary responsibility for disseminating GFS on the general government to the public, although the responsibility for producing the integrated set of statistics remains to be specified. (See Table 2b for more details). Legislative Decree No. 322/1989 and subsequent legislation, especially the legislation under which Istat was reorganized in 2000, provides a sound legal and institutional environment for Istat’s activities, supports data sharing and coordination among statistics producing agencies, calls for protection of the confidentiality of individual responses, and contains legal provisions for statistical reporting, including the identification of surveys with mandatory reporting. The statistical environment was further strengthened in 2003 with the adoption of legislation on the protection of personal data. Resources The staff resources of the National Accounts Directorate continue to be under pressure in meeting the statistical requirements of users, notably the European Union (EU) and the Economic and Monetary Union (EMU). Istat indicated that financial (and legal) constraints pose some limits to human resources management. Staff resources to compile the price indices are adequate. Computer resources are generally adequate. The progressive introduction of hand-held computers for consumer price collection in the municipalities, as recommended in the 2002 ROSC data module report, is scheduled for completion in 2007, and is significantly improving the efficiency and accuracy of data collection. Relevance The preparation of the National Statistical Program provides a framework for addressing the relevance of Istat’s statistical series. Istat maintains regular contacts with users through focus groups and users’ surveys to gauge the relevance of its products. The staff also participate in meetings of groups where users are represented, including those organized by the EU and the EMU. Other quality management Istat demonstrates a high sense of quality awareness, as evidenced by the “Overview of Quality Measures Adopted” in the 2001 Italian Statistical Yearbook. The existence of an independent oversight body in the form of the Guarantee on Statistical Information Commission, the Quality Circles that participate in formulating and tracking the National Statistical Program, and the Information System for Survey Documentation and Quality Control are among the processes put in place to monitor quality and to deal with quality considerations.

Professionalism Istat, supported by its designation as a research entity, maintains a high degree of professionalism. All evidence shows that statistics are compiled on an impartial basis. Choices of sources and statistical techniques are informed by statistical considerations at the national and European levels. Commenting on misuse of statistics is an explicit part of Istat’s communication strategy. Istat also actively promotes statistical literacy. Transparency Transparency of statistical policies and practices is promoted, inter alia, by the wide dissemination of the terms and conditions under which Istat works, easy access to the National Statistical Program, the identification of Istat’s products, and the practice of providing advance notice of major changes in methodology. The 2006 budget documentation introduced a proposal that the Guarantee of Statistical Information Commission should report directly to Parliament. A more recent draft bill proposes that this Commission report to the President and expands the Commission’s resources. Ethical standards Guidelines on the ethical standards expected of Istat staff are in place.

Table 2b.

Italy: Assessment of Data Quality—Dimensions 0 and 1—Istat, Ministry of Economy and Finance, and the Bank of Italy—Government Finance Statistics Components

Table 2b.

Italy: Assessment of Data Quality—Dimensions 0 and 1—Istat, Ministry of Economy and Finance, and the Bank of Italy—Government Finance Statistics Components

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment Compared to 2002 when the first ROSC data module was prepared, it is now clear that Istat has the prime responsibility for disseminating general government statistics to the public. This is consistent with Istat having established and chairing a formal working group responsible for coordinating and integrating the government finance statistics (GFS) produced by Istat, the MEF, and the BI, and transmitting the general government statistics to Eurostat. The legal and institutional environment of the MEF broadly supports its responsibility for the compilation and dissemination of data on budget execution. Although there is no specific legal mandate stipulating that such data should be published, MEF staff view the provisions of Legislative Decree 468/1978 as supporting publication. They also note that almost all units of general government publish their data. The BI, which compiles and disseminates finance data for general government, has a legal and institutional environment that supports its statistical activities. However, the responsibility for compiling and disseminating a comprehensive and integrated set of general government statistics remains to be determined, and in doing so it would be useful to preserve the valuable data cross-checking undertaken by the three agencies, a trademark of the Italian GFS statistics, by maintaining each agency’s responsibilities for the separate components. Resources The staff resources available at Istat for GFS are not commensurate with the data demands, notably from the EU institutions. This means that staff work under pressure to meet the increasing data requirements. In recent years, the MEF, which traditionally has had almost no statistical capacity, has made efforts to develop such capacity and is currently undergoing a reorganization to improve its statistical work. BI resources are commensurate with its statistical functions. Relevance The GFS cover highly relevant information on the subject field. This is further highlighted by their use in EU fiscal convergence criteria. In Italy, elements of GFS are compiled and disseminated by the three agencies. Istat publishes annual ESA 95 data and quarterly nonfinancial general government accounts. (It plans to publish the annual deficit and debt data for the Excessive Deficit Procedure (EDP) twice a year in a user friendly format starting in 2007). The MEF disseminates quarterly and annual cash data, and the BI disseminates monthly and annual financing and debt data, quarterly and annual financial accounts, and the financial net worth of general government and its subsectors. Other quality management Italian data-producing agencies have legal and institutional frameworks that support statistical quality.

(For an assessment of Istat for this dimension, please refer to Table 1a above.) Professionalism MEF and BI staff demonstrate professionalism. The compilation of data on an impartial basis is supported by the MEF’s accounting requirements, and by the BI’s statutory provisions of impartiality as well as its longstanding traditions of independence and professionalism. Both agencies are available to provide expert advice on technical aspects of the data. They both participate in appropriate European-level committees where the choices of sources and methods are informed by statistical considerations. Transparency The terms and conditions under which the MEF compiles data are available to the public. BI evidences transparency with respect to the terms and conditions under which it undertakes statistical work and in its procedures for the release of statistical information. Ethical standards Both the MEF and BI provide their staff with guidance on ethical standards.

View Table

Table 2b.

Italy: Assessment of Data Quality—Dimensions 0 and 1—Istat, Ministry of Economy and Finance, and the Bank of Italy—Government Finance Statistics Components

0. Prerequisites of quality

1. Assurances of integrity

Legal and institutional environment Compared to 2002 when the first ROSC data module was prepared, it is now clear that Istat has the prime responsibility for disseminating general government statistics to the public. This is consistent with Istat having established and chairing a formal working group responsible for coordinating and integrating the government finance statistics (GFS) produced by Istat, the MEF, and the BI, and transmitting the general government statistics to Eurostat. The legal and institutional environment of the MEF broadly supports its responsibility for the compilation and dissemination of data on budget execution. Although there is no specific legal mandate stipulating that such data should be published, MEF staff view the provisions of Legislative Decree 468/1978 as supporting publication. They also note that almost all units of general government publish their data. The BI, which compiles and disseminates finance data for general government, has a legal and institutional environment that supports its statistical activities. However, the responsibility for compiling and disseminating a comprehensive and integrated set of general government statistics remains to be determined, and in doing so it would be useful to preserve the valuable data cross-checking undertaken by the three agencies, a trademark of the Italian GFS statistics, by maintaining each agency’s responsibilities for the separate components. Resources The staff resources available at Istat for GFS are not commensurate with the data demands, notably from the EU institutions. This means that staff work under pressure to meet the increasing data requirements. In recent years, the MEF, which traditionally has had almost no statistical capacity, has made efforts to develop such capacity and is currently undergoing a reorganization to improve its statistical work. BI resources are commensurate with its statistical functions. Relevance The GFS cover highly relevant information on the subject field. This is further highlighted by their use in EU fiscal convergence criteria. In Italy, elements of GFS are compiled and disseminated by the three agencies. Istat publishes annual ESA 95 data and quarterly nonfinancial general government accounts. (It plans to publish the annual deficit and debt data for the Excessive Deficit Procedure (EDP) twice a year in a user friendly format starting in 2007). The MEF disseminates quarterly and annual cash data, and the BI disseminates monthly and annual financing and debt data, quarterly and annual financial accounts, and the financial net worth of general government and its subsectors. Other quality management Italian data-producing agencies have legal and institutional frameworks that support statistical quality.

(For an assessment of Istat for this dimension, please refer to Table 1a above.) Professionalism MEF and BI staff demonstrate professionalism. The compilation of data on an impartial basis is supported by the MEF’s accounting requirements, and by the BI’s statutory provisions of impartiality as well as its longstanding traditions of independence and professionalism. Both agencies are available to provide expert advice on technical aspects of the data. They both participate in appropriate European-level committees where the choices of sources and methods are informed by statistical considerations. Transparency The terms and conditions under which the MEF compiles data are available to the public. BI evidences transparency with respect to the terms and conditions under which it undertakes statistical work and in its procedures for the release of statistical information. Ethical standards Both the MEF and BI provide their staff with guidance on ethical standards.

Table 3a.

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

Table 3a.

Italy: 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 national accounts follow the definitions and concepts of ESA 95. Scope The scope of the national accounts includes, in addition to the range of recommended annual and quarterly national accounts tables, various extensions such as regional accounts, agricultural accounts, and environmental accounts. Classification/sectorization The classification/sectorization and basis for recording are in accordance with international standards. The ATECO 2002 (derived from the NACE Rev.1.1) was recently introduced. Basis for recording The basis for recording is in accordance with international guidelines.	The change of the benchmark year from 1992 to 2000 has been used to introduce many improvements regarding accuracy and reliability. Source data The range of source statistics is extensive. Istat’s business register, introduced in 1996, has been made more comprehensive. Local kind of activity units were added to the register in 2001. The response rates of some of the major enterprise surveys remains low. The cost structure survey (important for reliable use tables) that was planned for 2005 was postponed. Short-term sources on changes in inventories are still lacking. While some short-tem indicators become available rather late, this does not affect however the quarterly estimates significantly. Assessment of source data Istat assesses the source data routinely. Important innovations in validating enterprise data were introduced on occasion of the benchmark revision. Statistical techniques Statistical techniques are in accordance with good practice. Using various sources on labor, Istat makes large adjustments for the nonobserved economy. Chained volume and price measures were recently introduced. For health and education, output methods are used in making volume estimates. The product breakdown in supply-and-use tables could be increased. Balancing is not yet performed simultaneously at current and previous year prices. FISIM is allocated to users. No adjustments are made for holding gains/losses on inventories. Assessment and validation of intermediate data and statistical outputs Systematic procedures are used to assess the potential discrepancies in intermediate data. Revision studies Istat investigates the direction and magnitude of revisions between preliminary and final estimates.	Periodicity and timeliness The provisional estimates of the quarterly accounts meets SDDS requirements. The timeliness with which the annual accounts are published is good. Consistency Consistent time series for the annual accounts are available from 1970 onward, and for the quarterly accounts from 1980 onward. The national accounts statistics are reconcilable with the balance of payments and with MEF data on government operations. Revision policy and practice Revisions follow a regular schedule with a few exceptions, and it would be useful to indicate whether the data are still prone to revision. The releases of annual and quarterly accounts contain explanations on revisions to the previously published data.	Data accessibility National accounts data are readily accessible, the publications present the statistics in a clear manner, and charts and tables are disseminated to facilitate the analysis of the data. Metadata accessibility Many publications provide metadata and glossaries. In addition, frequently publications on sources and methods are being produced. All metadata, including the inventory of methods prepared for the EU Gross National Income Committee, is published on Istat’s website. Assistance to users Istat’s means of dissemination and assistance to users are excellent.

View Table

Table 3a.

Italy: 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 national accounts follow the definitions and concepts of ESA 95. Scope The scope of the national accounts includes, in addition to the range of recommended annual and quarterly national accounts tables, various extensions such as regional accounts, agricultural accounts, and environmental accounts. Classification/sectorization The classification/sectorization and basis for recording are in accordance with international standards. The ATECO 2002 (derived from the NACE Rev.1.1) was recently introduced. Basis for recording The basis for recording is in accordance with international guidelines.	The change of the benchmark year from 1992 to 2000 has been used to introduce many improvements regarding accuracy and reliability. Source data The range of source statistics is extensive. Istat’s business register, introduced in 1996, has been made more comprehensive. Local kind of activity units were added to the register in 2001. The response rates of some of the major enterprise surveys remains low. The cost structure survey (important for reliable use tables) that was planned for 2005 was postponed. Short-term sources on changes in inventories are still lacking. While some short-tem indicators become available rather late, this does not affect however the quarterly estimates significantly. Assessment of source data Istat assesses the source data routinely. Important innovations in validating enterprise data were introduced on occasion of the benchmark revision. Statistical techniques Statistical techniques are in accordance with good practice. Using various sources on labor, Istat makes large adjustments for the nonobserved economy. Chained volume and price measures were recently introduced. For health and education, output methods are used in making volume estimates. The product breakdown in supply-and-use tables could be increased. Balancing is not yet performed simultaneously at current and previous year prices. FISIM is allocated to users. No adjustments are made for holding gains/losses on inventories. Assessment and validation of intermediate data and statistical outputs Systematic procedures are used to assess the potential discrepancies in intermediate data. Revision studies Istat investigates the direction and magnitude of revisions between preliminary and final estimates.	Periodicity and timeliness The provisional estimates of the quarterly accounts meets SDDS requirements. The timeliness with which the annual accounts are published is good. Consistency Consistent time series for the annual accounts are available from 1970 onward, and for the quarterly accounts from 1980 onward. The national accounts statistics are reconcilable with the balance of payments and with MEF data on government operations. Revision policy and practice Revisions follow a regular schedule with a few exceptions, and it would be useful to indicate whether the data are still prone to revision. The releases of annual and quarterly accounts contain explanations on revisions to the previously published data.	Data accessibility National accounts data are readily accessible, the publications present the statistics in a clear manner, and charts and tables are disseminated to facilitate the analysis of the data. Metadata accessibility Many publications provide metadata and glossaries. In addition, frequently publications on sources and methods are being produced. All metadata, including the inventory of methods prepared for the EU Gross National Income Committee, is published on Istat’s website. Assistance to users Istat’s means of dissemination and assistance to users are excellent.

Table 3b.

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

Table 3b.

Italy: 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 concepts and definitions and the basis for recording of the national CPI generally follow the standards set by the ESA 95 and EU regulations. Scope The index coverage is final private consumption of all resident households. However, a measure of the services of owner-occupied dwellings is not included. Classification/sectorization Expenditures follow the COICOP classification. Basis for recording Valuation is at market prices, including VAT. Transactions are recorded on an accrual basis.	Source data The source data for the weights and prices for the CPI are comprehensive surveys. Beginning in 1997, the Household Budget Survey (HBS) became a continuous survey based on a two-stage stratified random sample. The response rates are high. The current CPI basket and weights are based on national accounts data for the year 2004, updated for price changes through to December 2005. As required by law, the monthly price survey is conducted in the chief towns of the provinces (86 out of 103 municipalities) thus necessitating the collection of an unusually large number of prices. A recommendation was made in the 2002 ROSC data module report that a possible over-sampling of prices, and a bias in outlet selection towards specialized stores, be addressed. Subsequently, Istat has been monitoring the outlet distributions by municipality over time, and local staff are being provided with clear outlet selection criteria; these guidelines are discussed at the annual Territory Officer Conferences prior to each rebase. Also, work on designing, and implementing, a random sampling approach to the selection of both outlets and products is very well advanced. From October 2006, the pricing period has been shifted from between the 16th of the preceding month and the 15th of the reference month; it has been brought forward and is now from the 1st to the 21st of the reference month, and is now fully within the index reference month, as recommended in the 2002 ROSC data module report. Assessment of source data Administrative prices received from government agencies are crosschecked in the markets. Other price data are thoroughly checked and edited by computer programs and by supervisors at municipal offices and at headquarters. Statistical techniques The statistical techniques used in calculating the index are sound. The index employs annual chaining, with weights based on national accounts data. Assessment and validation of intermediate data and statistical outputs Unusual movements in certain items and regions are thoroughly investigated. Revision studies Regarding the provisional and final monthly CPI, studies have not been undertaken as these two datasets rarely disagree at the national level.	Periodicity and timeliness The CPI’s monthly periodicity conforms to the SDDS. Its two weeks timeliness exceeds the one month SDDS requirement. Consistency The all-items CPI and the aggregate of the regional CPIs are the same. Revision policy and practice The revisions policy and practice for the CPI are well known to users. Differences between the preliminary and the final estimates at the national level are rare and trivial.	Data accessibility The CPI is released on a pre-announced schedule and data are made available to all users at the same time. The monthly releases provide sufficient component detail on the indices. Metadata accessibility The CPI press release contains a summary of the methodology, while a comprehensive description of concepts and methods is contained in a specialized publication, which is also available on the Istat website. Assistance to users Assistance to users is available; contact persons are identified in the relevant publications and on the Istat website.

View Table

Table 3b.

Italy: 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 concepts and definitions and the basis for recording of the national CPI generally follow the standards set by the ESA 95 and EU regulations. Scope The index coverage is final private consumption of all resident households. However, a measure of the services of owner-occupied dwellings is not included. Classification/sectorization Expenditures follow the COICOP classification. Basis for recording Valuation is at market prices, including VAT. Transactions are recorded on an accrual basis.	Source data The source data for the weights and prices for the CPI are comprehensive surveys. Beginning in 1997, the Household Budget Survey (HBS) became a continuous survey based on a two-stage stratified random sample. The response rates are high. The current CPI basket and weights are based on national accounts data for the year 2004, updated for price changes through to December 2005. As required by law, the monthly price survey is conducted in the chief towns of the provinces (86 out of 103 municipalities) thus necessitating the collection of an unusually large number of prices. A recommendation was made in the 2002 ROSC data module report that a possible over-sampling of prices, and a bias in outlet selection towards specialized stores, be addressed. Subsequently, Istat has been monitoring the outlet distributions by municipality over time, and local staff are being provided with clear outlet selection criteria; these guidelines are discussed at the annual Territory Officer Conferences prior to each rebase. Also, work on designing, and implementing, a random sampling approach to the selection of both outlets and products is very well advanced. From October 2006, the pricing period has been shifted from between the 16th of the preceding month and the 15th of the reference month; it has been brought forward and is now from the 1st to the 21st of the reference month, and is now fully within the index reference month, as recommended in the 2002 ROSC data module report. Assessment of source data Administrative prices received from government agencies are crosschecked in the markets. Other price data are thoroughly checked and edited by computer programs and by supervisors at municipal offices and at headquarters. Statistical techniques The statistical techniques used in calculating the index are sound. The index employs annual chaining, with weights based on national accounts data. Assessment and validation of intermediate data and statistical outputs Unusual movements in certain items and regions are thoroughly investigated. Revision studies Regarding the provisional and final monthly CPI, studies have not been undertaken as these two datasets rarely disagree at the national level.	Periodicity and timeliness The CPI’s monthly periodicity conforms to the SDDS. Its two weeks timeliness exceeds the one month SDDS requirement. Consistency The all-items CPI and the aggregate of the regional CPIs are the same. Revision policy and practice The revisions policy and practice for the CPI are well known to users. Differences between the preliminary and the final estimates at the national level are rare and trivial.	Data accessibility The CPI is released on a pre-announced schedule and data are made available to all users at the same time. The monthly releases provide sufficient component detail on the indices. Metadata accessibility The CPI press release contains a summary of the methodology, while a comprehensive description of concepts and methods is contained in a specialized publication, which is also available on the Istat website. Assistance to users Assistance to users is available; contact persons are identified in the relevant publications and on the Istat website.

Table 3c.

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

Table 3c.

Italy: 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 PPI is based on the ESA 95 concepts and definitions for the recording and valuation of product prices and weights. Scope All resident market enterprises are covered. As accepted by EU regulation, the PPI differs from the 1993 SNA in excluding changes in inventories, own-account production of goods for own final consumption, illegal sales to willing buyers, and services. Coverage is over 90 percent of manufacturing value added. Classification/sectorization The classification of economic activities is based on NACE Rev. 1.1. Products are classified according to PRODCOM, derived from CPA 2002. Statistical techniques Most statistical techniques are sound. The current base is 2000, and the index is rebased every five years and linked to form continuous series. Basis for recording The basis for recording weights and prices is billed sale prices, on an ex-factory basis, and excluding VAT and other specific taxes.	Source data The source data for the prices and weights are obtained from comprehensive data collection programs. About 12,000 price quotations are collected each month from 3,600 enterprises. Product weights are based on detailed PRODCOM data, while the upper-level activity-based weights are drawn from the Surveys of Structural Business Statistics (SBS). Despite creditable initiatives to improve the response rates of these surveys, which was recommended in the 2002 ROSC data module, response rates still remain low (around 50 percent to 60 percent), and the quality of the detailed results which fed into the 2000 rebase must be questioned. Assessment of source data Data reported by enterprises in the price survey are analyzed in detail each month, using a range of clerical and automated editing techniques. Istat’s PPI staff specialize in different sectors and are industry specialists. Statistical techniques Most statistical techniques are sound. The current base is 2000, and the index is rebased every five years and linked to form continuous series. There is scope for improvement in the statistical techniques used to handle temporarily missing prices (seasonal or missing observations), and products that change in quality over time. Istat recognizes this need and plans to implement improved methods as part of the 2005 rebase; however it is considered that this improvement should be implemented as soon as practicable, rather than delaying it until the release of the rebased series in early 2009. Assessment and validation of intermediate data and statistical outputs PPI data are regularly compared with other information, e.g., with similar data from the CPI and the Agriculture PPI (especially for food), and external industry and administrative sources. Revision studies The discrepancies between preliminary and final PPI data are small and they are monitored.	Periodicity and timeliness Periodicity and timeliness are within the one month SDDS requirements. Consistency Aggregate and component PPIs are consistent. Revision policy and practice The revisions policy and practice for the PPI are made known to users.	Accessibility The PPI is released on a pre-announced schedule and is made available to all users at the same time. The monthly releases provide sufficient detail on the indices, and the formats are clear. Metadata accessibility The PPI press release contains a summary of the methodology, while a comprehensive description of concepts and methods is contained in a specialized publication, which is also available on the Istat website. Assistance to users The PPI release and the website lists the name and telephone number of a contact person who can assist with enquiries. A catalog of publications is available and is updated each year.

View Table

Table 3c.

Italy: 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 PPI is based on the ESA 95 concepts and definitions for the recording and valuation of product prices and weights. Scope All resident market enterprises are covered. As accepted by EU regulation, the PPI differs from the 1993 SNA in excluding changes in inventories, own-account production of goods for own final consumption, illegal sales to willing buyers, and services. Coverage is over 90 percent of manufacturing value added. Classification/sectorization The classification of economic activities is based on NACE Rev. 1.1. Products are classified according to PRODCOM, derived from CPA 2002. Statistical techniques Most statistical techniques are sound. The current base is 2000, and the index is rebased every five years and linked to form continuous series. Basis for recording The basis for recording weights and prices is billed sale prices, on an ex-factory basis, and excluding VAT and other specific taxes.	Source data The source data for the prices and weights are obtained from comprehensive data collection programs. About 12,000 price quotations are collected each month from 3,600 enterprises. Product weights are based on detailed PRODCOM data, while the upper-level activity-based weights are drawn from the Surveys of Structural Business Statistics (SBS). Despite creditable initiatives to improve the response rates of these surveys, which was recommended in the 2002 ROSC data module, response rates still remain low (around 50 percent to 60 percent), and the quality of the detailed results which fed into the 2000 rebase must be questioned. Assessment of source data Data reported by enterprises in the price survey are analyzed in detail each month, using a range of clerical and automated editing techniques. Istat’s PPI staff specialize in different sectors and are industry specialists. Statistical techniques Most statistical techniques are sound. The current base is 2000, and the index is rebased every five years and linked to form continuous series. There is scope for improvement in the statistical techniques used to handle temporarily missing prices (seasonal or missing observations), and products that change in quality over time. Istat recognizes this need and plans to implement improved methods as part of the 2005 rebase; however it is considered that this improvement should be implemented as soon as practicable, rather than delaying it until the release of the rebased series in early 2009. Assessment and validation of intermediate data and statistical outputs PPI data are regularly compared with other information, e.g., with similar data from the CPI and the Agriculture PPI (especially for food), and external industry and administrative sources. Revision studies The discrepancies between preliminary and final PPI data are small and they are monitored.	Periodicity and timeliness Periodicity and timeliness are within the one month SDDS requirements. Consistency Aggregate and component PPIs are consistent. Revision policy and practice The revisions policy and practice for the PPI are made known to users.	Accessibility The PPI is released on a pre-announced schedule and is made available to all users at the same time. The monthly releases provide sufficient detail on the indices, and the formats are clear. Metadata accessibility The PPI press release contains a summary of the methodology, while a comprehensive description of concepts and methods is contained in a specialized publication, which is also available on the Istat website. Assistance to users The PPI release and the website lists the name and telephone number of a contact person who can assist with enquiries. A catalog of publications is available and is updated each year.

Table 3d.

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

Table 3d.

Italy: 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 GFS concepts and definitions used are consistent with those of the general government sector defined in the ESA 95. However, they are not produced in the context of the comprehensive GFSM 2001 framework that would fully integrate the components currently disseminated by the three agencies involved in GFS compilation. Scope The scope is consistent with the ESA 95 general government sector. Classification/sectorization Data conform to national accounts sectorization standards, and the classifications used are linkable to the GFSM 2001. Basis for recording The GFS components are recorded on both an accrual basis (Istat) and cash basis (MEF). Data on financing and debt (BI) are valued and classified in accordance with international standards. For data on financial accounts and balance sheets (BI), time of recording and valuation are fully consistent with GFSM 2001.	Source data Source data include public accounting quarterly records of the MEF, monthly financing and debt data of the BI (compiled mainly through the BI’s Monetary Policy and Foreign Exchange Rate Department, which manages bills and bonds auctions, the bank reporting system and Italian Foreign Exchange Office information), local health data from the Ministry of Health, and local government data from the Ministry of the Interior supplemented with surveys by Istat. The BI also uses information obtained from the Treasury and direct information from individual institutional units. Assessment of source data Compared to 2002, the data collection from local government units has improved with the General Government Network RUPA becoming operational in 2005. An other improvement is that security borrowing by local governments to finance capital spending is now being reported to the MEF. The BI collects data on all financing and debt of local government. However, arrears made by local health authorities are not captured unless refinanced with financial institutions. Source data are not always amenable in specifying the economic nature of transactions. Statistical techniques Adequate techniques are used for adjusting source data to accrual basis, to calculate the payables/receivables, and to apply the appropriate economic classification. Assessment and validation of intermediate data and statistical outputs A trademark of the Italian system is the capacity to cross-check data that are compiled from independent sources. A high-level commission investigated the causes of discrepancies among the measures of government borrowing requirements and financing. This work is pursued in a formal working group established and chaired by Istat. The validation process at Istat is constrained by important time lags in assessing the economic nature of transactions and practices that limit revisions to the published aggregates. This may lead to inconsistencies with the GFS component that is under the responsibility of the BI. Revision studies Revision studies are not routinely done, but are undertaken when major changes are made.	Periodicity and timeliness Data on general government operations are published annually within six months after the end of the year as prescribed in the SDDS. Furthermore, quarterly nonfinancial accounts for general government on an accrual basis are also published. In addition to the SDDS quarterly central government debt data disseminated by the MEF, central (and general) government debt data are published monthly by the BI within two months of the reference period, exceeding SDDS requirements. [Data are also made available to Istat and Eurostat on a quarterly basis.] Data on central government operations are published by the MEF, monthly in line with SDDS requirements, but only after 45 days compared to 30 days in the SDDS. The authorities use a flexibility option on timeliness. The MEF also publishes quarterly cash statistics on the general government. Consistency Consistency among the GFS components published by the various data agencies has improved in recent years. Revision policy and practice Istat has a clear revision policy but practices could be improved in certain areas, such as by identifying which data are revised and by providing more details on revisions.	Data accessibility Data accessibility is very good in most respects and data are usually published by each agency in a timely fashion (although the timing of the MEF quarterly release of quarterly cash statistics may fluctuate due to legislative arrangements). Metadata accessibility Istat provides extensive documentation on the general government sector of the national accounts. Publications prepared by the BI routinely include summary information of the concepts, sources, and methods used. The documentation on administrative data published by the MEF in its releases is limited, although an extensive commentary on fiscal developments is included. Assistance to users Assistance to users is provided through catalogs and an on-line list of documents. Contact persons are identified on Istat releases and the BI provides in each publication a contact e-mail address. The MEF provides the names of contact persons for central government debt.

View Table

Table 3d.

Italy: 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 GFS concepts and definitions used are consistent with those of the general government sector defined in the ESA 95. However, they are not produced in the context of the comprehensive GFSM 2001 framework that would fully integrate the components currently disseminated by the three agencies involved in GFS compilation. Scope The scope is consistent with the ESA 95 general government sector. Classification/sectorization Data conform to national accounts sectorization standards, and the classifications used are linkable to the GFSM 2001. Basis for recording The GFS components are recorded on both an accrual basis (Istat) and cash basis (MEF). Data on financing and debt (BI) are valued and classified in accordance with international standards. For data on financial accounts and balance sheets (BI), time of recording and valuation are fully consistent with GFSM 2001.	Source data Source data include public accounting quarterly records of the MEF, monthly financing and debt data of the BI (compiled mainly through the BI’s Monetary Policy and Foreign Exchange Rate Department, which manages bills and bonds auctions, the bank reporting system and Italian Foreign Exchange Office information), local health data from the Ministry of Health, and local government data from the Ministry of the Interior supplemented with surveys by Istat. The BI also uses information obtained from the Treasury and direct information from individual institutional units. Assessment of source data Compared to 2002, the data collection from local government units has improved with the General Government Network RUPA becoming operational in 2005. An other improvement is that security borrowing by local governments to finance capital spending is now being reported to the MEF. The BI collects data on all financing and debt of local government. However, arrears made by local health authorities are not captured unless refinanced with financial institutions. Source data are not always amenable in specifying the economic nature of transactions. Statistical techniques Adequate techniques are used for adjusting source data to accrual basis, to calculate the payables/receivables, and to apply the appropriate economic classification. Assessment and validation of intermediate data and statistical outputs A trademark of the Italian system is the capacity to cross-check data that are compiled from independent sources. A high-level commission investigated the causes of discrepancies among the measures of government borrowing requirements and financing. This work is pursued in a formal working group established and chaired by Istat. The validation process at Istat is constrained by important time lags in assessing the economic nature of transactions and practices that limit revisions to the published aggregates. This may lead to inconsistencies with the GFS component that is under the responsibility of the BI. Revision studies Revision studies are not routinely done, but are undertaken when major changes are made.	Periodicity and timeliness Data on general government operations are published annually within six months after the end of the year as prescribed in the SDDS. Furthermore, quarterly nonfinancial accounts for general government on an accrual basis are also published. In addition to the SDDS quarterly central government debt data disseminated by the MEF, central (and general) government debt data are published monthly by the BI within two months of the reference period, exceeding SDDS requirements. [Data are also made available to Istat and Eurostat on a quarterly basis.] Data on central government operations are published by the MEF, monthly in line with SDDS requirements, but only after 45 days compared to 30 days in the SDDS. The authorities use a flexibility option on timeliness. The MEF also publishes quarterly cash statistics on the general government. Consistency Consistency among the GFS components published by the various data agencies has improved in recent years. Revision policy and practice Istat has a clear revision policy but practices could be improved in certain areas, such as by identifying which data are revised and by providing more details on revisions.	Data accessibility Data accessibility is very good in most respects and data are usually published by each agency in a timely fashion (although the timing of the MEF quarterly release of quarterly cash statistics may fluctuate due to legislative arrangements). Metadata accessibility Istat provides extensive documentation on the general government sector of the national accounts. Publications prepared by the BI routinely include summary information of the concepts, sources, and methods used. The documentation on administrative data published by the MEF in its releases is limited, although an extensive commentary on fiscal developments is included. Assistance to users Assistance to users is provided through catalogs and an on-line list of documents. Contact persons are identified on Istat releases and the BI provides in each publication a contact e-mail address. The MEF provides the names of contact persons for central government debt.

III. Staff’s Recommendations

13. Based on the review of Italy’s statistical practices, discussions with the data–producing agencies, and consultation with data users, the mission made a set of recommendations. They are designed to increase further Italy’s adherence to internationally accepted statistical practices and would, in the mission’s view, enhance the analytical usefulness of Italy’s statistics. Some additional technical suggestions are included in the Detailed Assessments volume.