Re-estimating Real Output for Service Industries in Australia

This paper examines the current national accounts measure of real output for five major service industries in Australia. It finds that real output measures for insurance services; banking services; non-bank financial services; and education services are unsatisfactory. Alternative estimates based on acceptable output proxies are presented for these industries for the period 1986/87-1993/94. The estimates indicate that insurance, banking and non-bank financial services have grown more quickly than previously thought, while education services have grown less quickly than earlier estimates suggested. The effect on GDP of these estimates is also presented.