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Volume Accounts of FISIM: a Comparative Study between Stocks Deflation Method and Output Index Method

Author

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  • Xiaoai Jia

    (School of Statistics, Shandong Technology and Business University, Yantai, China)

  • Panpan Wang

    (School of Statistics, Shandong Technology and Business University, Yantai, China)

  • Ziying Hao

    (School of Economics, Shandong Technology and Business University, Yantai, China)

  • Zhiyong Zheng

    (Institute of Aftificial Intelligence, De Montfort University, Leicester, UK)

Abstract

Because of the complexity of indirect financial intermediary services (FISIM) accounting, the traditional price index deflation method can no longer meet its accounting needs. The manual of price and volume measurement suggests that the stock deflation method and output index method should be used to calculate the volume of FISIM. Comparing the two accounting frameworks, it can be found that the key to the implementation of the stock deflation method is to set a scientific and reasonable deflation index from two aspects of service price and the service quantity, while the key of the output index method is the selection of the output index and the determination of weight. This paper compares the application cases of stock deflation method and output index method in practice, summarizes the similarities, differences, advantages and disadvantages of each case in index construction, index selection and weight determination, and further provides a reference for China FISIM volume accounting.

Suggested Citation

  • Xiaoai Jia & Panpan Wang & Ziying Hao & Zhiyong Zheng, 2023. "Volume Accounts of FISIM: a Comparative Study between Stocks Deflation Method and Output Index Method," Journal of Economic Statistics, Anser Press, vol. 1(1), pages 68-76, February.
    • Handle: RePEc:bba:j00005:v:1:y:2023:i:1:p:68-76:d:116
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    References listed on IDEAS

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    1. Robert Inklaar & J. Christina Wang, 2013. "Real Output of Bank Services: What Counts is What Banks Do, Not What They Own," Economica, London School of Economics and Political Science, vol. 80(317), pages 96-117, January.
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