GGDC Research Memorandum Nr. 117
Title: Banking sector output measurement in the euro area - a modified approach
Author(s): Antonio Colangelo and Robert Inklaar
Abstract: Banks do not charge explicit fees for many of the services they provide but the service payment is bundled with the offered interest rates. This output therefore has to be imputed using estimates of the opportunity cost of funds. We argue that rather than using the single short-term, low-risk interest rate as in current official statistics, reference rates should more closely match the risk characteristics of loans and deposits. For the euro area, imputed bank output is, on average, 24 to 40 percent lower than according to current methodology. This implies an average downward adjustment of euro area GDP (at current prices) between 0.16 and 0.27 percent.
Date: March 2010 | Full Text
Last modified: | 04 January 2019 10.27 a.m. |
More news
-
19 April 2024
New thesis prize for master's students of Economics and Business
How can we encourage economics and business students to deal with important societal challenges in their master's thesis? The 14 Dutch faculties of economics and business, united in the Council of Deans in Economics and Business (DEB), have set up...
-
18 April 2024
Ward Romeijnders appointed as Professor of Optimization under Uncertainty
The Faculty of Economics and Business is pleased to announce that Ward Romeijnders has been appointed as Professor of Optimization under Uncertainty. The chair is situated within the Department of Operations.
-
12 April 2024
Inaugural Lecture Corine Noordhoff: Future ready retail
In her inaugural lecture, Professor of Retail Marketing Corine Noordhoff will provide insights in the cornerstones for survival and adaptation in the retail sector. Noordhoff’s inaugural lecture will take place on Friday 19 April 2024, 16:15 –...