A Trial Of Purchasing Power Parity Of Education Based On Output Method

All the time,the output accounting of non-market service is the focus and difficulty of national economic accounting.The overall strength of a country is not only reflected in the economy,but also reflected in science,education,culture and health.Education as a typical non-market service and the embodiment of a country's comprehensive strength,when it is compared across countries,an accurate accounting method is also required.Education like other non-market services is considered to be comparison resistant.The most important reason is that there are no economically-significant prices to value output,it is also because the units of output are difficult to define,it could be a lesson,it also could be a student;and because the differences in the quality of output between countries cannot be easily identified and quantified.Education by market producers exists similar difficulties when it comes to definition of education and measuring output,identifying and quantifying quality between different countries.This explains that when education is defined with a right way could use a method which is most likely market producer to value its output.If there are some differences across countries,they may use a common method to avoid these bias.Before 2008,Organization for Economic Co-operation and Development(OECD)found that SNA1993 has a lot of disadvantages in the input method used in accounting education services,so the OECD experts conversion their ideas,and use the method which is similar to the market to calculate the education from the perspective of output.So far,some members of OECD have been used output method to account education service output,the result of volume of output is more precisely compared with input method,the differences between countries are smaller than those obtained with the output of education input method.As for the comparison of education,the method which is used is calculating purchasing power parity of education by input method.But which one is only used is the item of compensation of employees(wages and allowances of teachers,educational administrators).First,although the majority of educational expenditure are paid by the government,but it is consumed by households.Radically,it's not applicable to the classification of national accounts.In 1975,Peter Hill proposed a method of measuring volume about non-market service,which has been accepted and used by OECD in recent years.In the research of purchasing power parity of education,OECD considers the method of accounting for GDP in the market producer by expenditure method.They regard education as a kind of "individual" service,and the final consumption is taken as the price index to calculate the purchasing power parity of education.The main content of this article: Firstly,it gives a brief description of China's educational situation,makes a simple illustration in the measurement of education with input method and points out its disadvantages.Then,it introduces the output method of educational output accounting which is used by European developed countries themselves,it makes differences in using quality adjustment factor,it also introduces the method of calculating purchasing power parity of education which is based on output method.Which output method is used is expenditure method,What is the core and the most difficult task is to get a quality adjustment factor which can be applied by all countries.It not only improves the basic concepts,but also improves the quality of the data,thus,it gets a more accurate result.Last,it makes a comparison of education output between ShangHai and HongKong by using the thought of Eurostat-OECD Methodological Manual on Purchasing Power Parities,points out some question of our country and puts forward some advices.