Real Output of Bank Services: What Counts is What Banks Do, Not What They Own
AbstractThe measurement of bank output, a difficult and contentious issue, has become even more important in the aftermath of the devastating financial crisis of recent years. In this paper, we argue that models of banks as processors of information and transactions imply a quantity measure of bank service output based on transaction counts instead of balances of loans and deposits. Compiling new and comparable output measures for the United States and a range of European countries, we show that our counts?based output series exhibit significantly different growth patterns than our balances?based output series over the years 1997 to 2009. Since the U.S. official statistics rely on counts while European statistics rely on balances, this implies a potentially considerable bias in the estimate of bank output growth in Europe vis?Ã ?vis that in the United States.
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 80 (2013)
Issue (Month): 317 (01)
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Other versions of this item:
- Wang, J. Christina & Inklaar, Robert Christiaan, 2011. "Real Output of Bank Services: What Counts Is What Banks Do, Not What They Own," GGDC Research Memorandum GD-119, Groningen Growth and Development Centre, University of Groningen.
- Robert Inklaar & J. Christina Wang, 2011. "Real output of bank services: what counts is what banks do, not what they own," Working Papers 11-1, Federal Reserve Bank of Boston.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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