Report Title

ECONOMIC THEORY AS IT APPLIES TO STATISTICS CANADA: A REVIEW OF THE LITERATURE

Author: Kirsti Nilsen, PhD Submitted to Statistics Canada: 7 May 2007 Contract: 72100-06-0049Pages: 114

Contents

Executive Summary

1. Introduction

2. Review of the Literature on the Economic Theory of Information

2.1 Neoclassical Economic Theory

2.2 Market Failure

• 2.2.1 Failure of Competition
• 2.2.2 Externalities
• 2.2.3 Imperfect Information
• 2.2.4 Public Goods

2.3 Failure of Neoclassical Economic Theory to Account for Information

• 2.4 Economics of Information
• 2.4.1 Overviews on the Economics of Information
• 2.4.2 Histories of Information Economics
• 2.4.3 Defining Information
• 2.4.4 Information as a Commodity
• 2.4.5 Information as a Public Good
• 2.4.6 Social Value of Information

3. Elements of the Literature Relevant to Management of the Production and Dissemination of Official Statistics in Canada

• 3.1 Economics of Public Sector Information

3.2 Economic Theory with Respect to the Advantages of Public over Private Sector Supply of Information

• 3.2.1 Distributional Versus Efficiency Impacts of Information
• 3.2.2 Impact of Information on General Economic Efficiency
• 3.2.3 Impact of Public Sector Information on General Economic Efficiency

3.3 Economic Theory with Respect to the Pricing of Information and Information Goods

• 3.3.1 Valuing Information in order to Price it
• 3.3.2 Costs of Information
• 3.3.3 Cost-benefit Analysis
• 3.3.4 Pricing Theory
• 3.3.5 Pricing of Public Goods (where Consumption of a Good is Non-Rivalrous and Excludable)
• 3.3.6 Pricing of Information
• 3.3.7 Pricing of Public Sector Information

3.4 Impact of Creation of Intellectual Property Rights

• 3.4.1 Copyrighting Public Sector Information

3.5 Economic Rationale for Public Sector Supply of Official Statistics

• 3.5.1 Determining the Appropriate Level of Production of Official Statistics
• 3.5.2 Should Statistical Agencies Seek to Generate Revenue?

3.6 Economic Rationale for Government Intervention in the Statistical Information Market

• 3.6.1 Economic Arguments Regarding Re-use of Official Statistics

4. Summary of Significant Implications of the Theory for Canada’s National Statistical Program

5. Review of Statistics Canada Production and Dissemination Program in Light of the Above

6. Areas where Statistics Canada’s Program could be argued to be Sub-Optimal in Light of the

Identified Theory

Bibliography

Glossary

Statistics Canada Contract entry

Contract 72100-06-0049 Vendor: Kirsti Nilsen Reference Number: 72100-06-0049 Contract Date: August 21, 2006 Description of Work: 0499 Other professional services not otherwise specified Contract Period : August 21, 2006 to March 31, 2007 Delivery Date: March 31, 2007 Contract Value: $24,782.80Comments: Review and Analysis of Current Economic Theory.

Report online: Yes