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Measuring the Effects of Demand and Supply Factors on Service Sector Productivity

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  • OHYAMA Atsushi

Abstract

Economic activities in the service sector have been increasingly important in developed countries. Despite the importance of the service sector, there are several drawbacks with a conventional way of measuring service sector productivity. This paper proposes an alternative methodology in which we can separate demand and supply factors that influence service transactions. An empirical framework is constructed based on the model of Johnson and Myatt (2003) and allows us to identify cost factors separately from demand factors. This paper also demonstrates that demand factors significantly influence the conventional measure of service sector productivity.

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  • OHYAMA Atsushi, 2015. "Measuring the Effects of Demand and Supply Factors on Service Sector Productivity," Discussion papers 15042, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:15042
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    8. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372, National Bureau of Economic Research, Inc.
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