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Measuring Output From The Public Sector: A Critical Examination Of The Atkinson Review

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  • Richard Murray

Abstract

In 1993 a new page was turned in national accounting. The United Nations Standards of National Accounting recommended a new standard for the measurement of output from the public sector. Implementation has recently begun in many countries, in Europe based on a European Union directive. In the U.K. the Atkinson Review in 2005 came up with a series of recommendations. This article examines its recommendations concerning the definition and valuation of government outputs. For the non‐market sector a market analog is recommended by the Review. However, several of its recommendations are inconsistent with that, championing social value as a basis for definitions and measurement. If taken seriously it will lead to arbitrary and politically controversial factors inserted into national accounts. The article highlights the norm that GDP is a measure of production, and advocates adhering to the market analog and following well recognized practices of national accounting.

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  • Richard Murray, 2010. "Measuring Output From The Public Sector: A Critical Examination Of The Atkinson Review," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(2), pages 413-423, June.
    • Handle: RePEc:bla:revinw:v:56:y:2010:i:2:p:413-423
    DOI: 10.1111/j.1475-4991.2010.00400.x
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    1. Murray, Richard, 1987. "Den offentliga sektorn – effektivitet och produktivitet," Working Paper Series 175, Research Institute of Industrial Economics.
    2. T. P. Hill, 1977. "On Goods And Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-338, December.
    3. Hill, T P, 1977. "On Goods and Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-338, December.
    4. Luoma, Kalevi & Hjerppe, Reino, 1997. "Finnish Experiences in Measuring and Promoting Productivity in the Public Sector," Discussion Papers 150, VATT Institute for Economic Research.
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    2. Seri, Paolo & Zanfei, Antonello, 2013. "The co-evolution of ICT, skills and organization in public administrations: Evidence from new European country-level data," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 160-176.
    3. Mr. Francesco Grigoli & Mr. Eduardo Ley, 2012. "Quality of Government and Living Standards: Adjusting for the Efficiency of Public Spending," IMF Working Papers 2012/182, International Monetary Fund.

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