Measurement of Government Output: A Review

Direct measurement techniques have recently been employed by some statistical agencies for the government output components in the SNA. These methods use proxies and indictator for outputs due to the inherent lack of market valuations. This article investigates the pros and cons of these new approaches and compares them with the traditional input method. This leads us to take a deeper look at the purposes, objectives, and uses of the SNA. The current method can be justified from a collective household point of view, but the lack of direct output data frustrates students of productivity analysis. By taking the economic approach in index number theory, some direct measurement methods can be compatible with the cost-of-living approach in the CPI. JEL Classification: C43, H50, O47, P44