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Treatment Of Government Activity On The Production Account

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  • Utz P. Reich

Abstract

This paper is the concluding part of a project described in an earlier paper in this journal.1 The conceptual partition of government services into intermediate, individual and collective consumption is connected to the framework of the SNA and ESA. The paper shows how elements from both systems can be welded together in order to describe government productive activity more clearly within the general make‐use matrix approach. After an attempt to clarify some of the existing terminology, figures are presented which show that the partition is feasible, in principle. The data also support the necessity of distinguishing between individual and collective consumption of government services leading to the concept of total individual consumption. Finally, the paper concludes that intermediate use, if properly defined, should be introduced as a subcategory of government consumption, but not subtracted at present from GDP.

Suggested Citation

  • Utz P. Reich, 1986. "Treatment Of Government Activity On The Production Account," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 32(1), pages 69-85, March.
    • Handle: RePEc:bla:revinw:v:32:y:1986:i:1:p:69-85
    DOI: 10.1111/j.1475-4991.1986.tb00529.x
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    Cited by:

    1. Matti Virén & Erkki Koskela, 2000. "Is there a Laffer curve between aggregate output and public sector employment?," Empirical Economics, Springer, vol. 25(4), pages 605-621.
    2. Markos J Mamalakis, 1991. "Ingreso, Producción y Gasto en una Economía de Mercancías Compuestas," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 28(84), pages 291-306.
    3. Koskela, Erkki & Virén, Matti, 1999. "Is There a Laffer Curve Between Output and Public Sector Employment?," Discussion Papers 194, VATT Institute for Economic Research.
    4. Brümmerhoff, Dieter, 2000. "Der Staat in den Volkswirtschaftlichen Gesamtrechnungen - Ein neues System, alte und neue ungelöste Fragen -," Thuenen-Series of Applied Economic Theory 25, University of Rostock, Institute of Economics.

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