IDEAS home Printed from https://ideas.repec.org/a/sls/ipmsls/v40y20214.html
   My bibliography  Save this article

Measuring the Volume of Services Industries Output and Productivity: An Audit of Services Producer Price Indices in OECD Countries

Author

Listed:
  • Mary O’Mahony
  • Lea Samek

Abstract

This article discusses measurement of Services Producer Price Indices, which are important in estimating the volume of the output of services sectors. Price indices for 31 individual services activities were downloaded from the websites of National Statistical Offices for 16 OECD countries and compared to those for the UK. The results show that UK services prices tend on average to have either lower or equal price growth than in other countries, suggesting that an underestimate of services output growth is not likely to be a greater problem in the UK than in other comparable countries. Nevertheless, there may be common biases across countries due to inadequate adjustments for quality. Further analysis of measurement methods suggests a small but significant positive bias in price inflation for one commonly employed method based on time spent on the provision of services. This means that the growth in the volume of services activity may be understated in general in the group of countries considered in this article.

Suggested Citation

  • Mary O’Mahony & Lea Samek, 2021. "Measuring the Volume of Services Industries Output and Productivity: An Audit of Services Producer Price Indices in OECD Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 40, pages 89-104, Spring.
  • Handle: RePEc:sls:ipmsls:v:40:y:2021:4
    as

    Download full text from publisher

    File URL: http://www.csls.ca/ipm/40/IPM_40_OMahony.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    2. Zvi Griliches, 1992. "Introduction to "Output Measurement in the Service Sectors"," NBER Chapters, in: Output Measurement in the Service Sectors, pages 1-22, National Bureau of Economic Research, Inc.
    3. Timmer,Marcel P. & Inklaar,Robert & O'Mahony,Mary & Ark,Bart van, 2013. "Economic Growth in Europe," Cambridge Books, Cambridge University Press, number 9781107412446, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dale W. Jorgenson & Marcel P. Timmer, 2011. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 1-29, March.
    2. Davide Consoli & Francesco Vona & Francesco Rentocchini, 2016. "That was then, this is now: skills and routinization in the 2000s," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(5), pages 847-866.
    3. Singh, Inderjeet & Lila, Anshu, 2012. "Emerging Structure of Rajasthan Economy in India," MPRA Paper 43522, University Library of Munich, Germany, revised 25 Dec 2012.
    4. Huang, Minjie & Kubick, Thomas R. & Tseng, Kevin, 2021. "Technology spillovers and the duration of executive compensation," Journal of Banking & Finance, Elsevier, vol. 131(C).
    5. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.
    6. Brian Wu & Anne Marie Knott, 2006. "Entrepreneurial Risk and Market Entry," Management Science, INFORMS, vol. 52(9), pages 1315-1330, September.
    7. Aldieri, Luigi & Vinci, Concetto Paolo, 2015. "R&D Migration: a cross-national analysis," MPRA Paper 62541, University Library of Munich, Germany.
    8. John Haltiwanger, 2002. "Understanding aggregate growth: The need for microeconomic evidence," New Zealand Economic Papers, Taylor & Francis Journals, vol. 36(1), pages 33-58.
    9. Francisco J. Buera & Joseph P. Kaboski, 2012. "The Rise of the Service Economy," American Economic Review, American Economic Association, vol. 102(6), pages 2540-2569, October.
    10. Faïz Gallouj & Maria Savona, 2009. "Innovation in services: a review of the debate and a research agenda," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 149-172, April.
    11. Raquel Ortega‐Argilés & Mariacristina Piva & Marco Vivarelli, 2014. "The transatlantic productivity gap: Is R&D the main culprit?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1342-1371, November.
    12. Barry P. Bosworth & Jack E. Triplett, 2007. "The Early 21st Century U.S. Productivity Expansion is Still in Services," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 3-19, Spring.
    13. Ark, Bart van & Broersma, Lourens & Jong, Gjalt de, 1999. "Innovation in services : overview of data sources and analytical structures," GGDC Research Memorandum 199944, Groningen Growth and Development Centre, University of Groningen.
    14. Faïz Gallouj & Maria Savona, 2010. "Towards a Theory of Innovation in Services: A State of the Art," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 1, Edward Elgar Publishing.
    15. Steve Machin & Sandra McNally & Camille Terrier & Guglielmo Ventura, 2020. "Closing the Gap between Vocational and General Education? Evidence from University Technical Colleges in England," CESifo Working Paper Series 8678, CESifo.
    16. repec:spo:wpmain:info:hdl:2441/2ajduu0gqt9ho8h2tavbin6ops is not listed on IDEAS
    17. Guanghua Wan & Peter J. Morgan & Harry X. Wu, 2016. "Sustainability of China's Growth Model: A Productivity Perspective," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(5), pages 42-70, September.
    18. de Groot, H.L.F., 1998. "Macroeconomic Consequences of Outsourcing. An Analysis of Growth, Welfare and Product Variety," Other publications TiSEM fcbc1070-85e4-4b77-b138-0, Tilburg University, School of Economics and Management.
    19. Stephen D. Oliner & Daniel E. Sichel, 1994. "Computers and Output Growth Revisited: How Big Is the Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 273-334.
    20. Zvi Griliches, 1998. "The Search for R&D Spillovers," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 251-268, National Bureau of Economic Research, Inc.
    21. Florence Jany‐Catrice, 2022. "A political economy of social impact measurement," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 267-291, June.

    More about this item

    Keywords

    UK; SPPIs; oecd;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:40:y:2021:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CSLS (email available below). General contact details of provider: https://edirc.repec.org/data/cslssca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.