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SERVICE PRODUCTION IN HISTORICAL NATIONAL ACCOUNTS
Author(s) -
Krantz Olle
Publication year - 1994
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1994.tb00043.x
Subject(s) - national accounts , production (economics) , service (business) , work (physics) , productivity , national income and product accounts , economics , macroeconomics , economy , engineering , mechanical engineering
Constant price calculation of service production is a problematic issue in contemporary national accounts, and it is far more so in historical series. The indicator method has been suggested as one way of coming to terms with volume calculations. This method is scrutinized, and it is claimed that it does not represent the solution for historical matters. Instead, various techniques have to be used for various parts of the total. The methods of deflating service production in five countries' historical national accounts as well as the consequences of using different methods are compared. Most often, existing series are not compatible with those for goods production, which of course has repercussions on attempts to study e.g. productivity. It is concluded that much work has to be done to improve the methodology and to arrive at a common international framework for historical national accounts.