PROBLEMS OF IDENTIFYING AND MEASURING INTERMEDIATE (PRODUCER) SERVICES IN THE COMPILATION AND USE OF INPUT-OUTPUT TABLES*

The paper is mainly concerned with statistical problems relating to intermediate services that arise in the construction of national input-output (I–O) tables. Though these problems are sometimes discussed in the literature, their precise nature is usually not spelled out in any detail and this is done in the paper. The problems are closely related to the company-establishment statistical dichotomy permeating the ultimate sources and allocation of intermediate services. Important examples can be found regarding the statistical treatment of head offices, research and development expenditures, and international trade of intermediate services. Presently used procedures for Canadian and U.S. I–O compilation show evidence of statistical inconsistencies and lack an appropriate framework to utilize full information. The paper suggests a possible approach for reconciling company and establishment data based on industrial organization linkage studies at the microlevel. Considerable empirical support is offered, using various official Canadian statistical publications, to show that the suggested approach is both feasible and has desirable properties. The paper goes on to argue that the contemporary information technology revolution has profound implications for I–O compilation and use with special reference to intermediate services. Four major implications are explained in the context of the growing microelectronics technological change and related literature. Some basic suggestions are put forward with regard to joint-cost allocation and inter temporal comparisons problems with respect to I–O compilation. It also appears that some fundamental rethinking of commonly accepted standard industrial classification conventions may be called for in the near future if I–O tables are to remain relevant and viable. The paper thus features a somewhat broader view of I–O statistical problems than usual and attempts to show that this view is potentially appropriate to questions of economic policy formulation.     

On measuring serial correlation: Implications for finance and accounting research studies

Accounting and finance studies that measure serial correlation implicitly make two assumptions. One, the studies assume that the sample estimate of the autocorrelation coefficient is unbiased. The assumption is intuitively appealing, but incorrect. This article provides a measure of the size of the bias. Two, the studies assume that the target of the time series is constant over time. However, over a long period target values may change. This article models the general case in which not only do random shocks affect actual values, but also random changes affect target values.     

Measuring Housing Subsidies: Distortionary and Distributional Effects in the Netherlands

This paper measures the distortionary and distributional effects of housing subsidies in the Netherlands. Its broad scope allows us to discuss the results in the light of the main justifications for subsidising housing, i.e. the merit–good argument, external effects and the distribution motive. Our measurements reveal some patterns of subsidisation that seem difficult to justify on these grounds. This applies especially to the differences between subsidisation of rental and owneroccupied housing and between mortgage– and equity–financed ownership. Moreover, the inelastic supply of housing in the Netherlands entails that subsidisation has only a limited effect on promoting housing quality.     

Generational Accounts for The Netherlands: An Update

This paper extends the standard generational accounting methodologyby incorporating prospective changes in the economic environment,assigning the benefits of government purchases to generations,distinguishing between public consumption and public investment,and transforming the generational accounts into government budgets.It applies the methodology to the Netherlands. An expected increasein labor-force participation almost offsets the adverse effectof aging on the sustainability of the Dutch public finances.Since the rise in labor-force participation occurs before thebulk of the aging, the government will have to run sizable fiscalsurpluses in the next decades in order to create the budgetaryroom for higher age-related government expenditures in laterdecades.