Producer services and the ‘mixed‐market’ problem: some empirical evidence

Abstract

Summary A derived‐demand approach to decomposing the service content of official statistics is developed and implemented on Canadian input‐output data. Our principal finding is that the fundamental problem of separating consumer services from producer services (the ‘mixed‐market’ problem) causes conventional supply‐orientated methodologies substantially to overestimate the economic contribution of producer services to GDP.