The Need for Output Measurements in the Service Industries: A Comment

Abstract
Generally economics as a discipline takes it for granted that the output of a firm or industry can be measured. With the service industries, however, measurement of output is difficult and often ambiguous. It is here suggested that this lack of suitable measures of output, and the consequent difficulties of applying standard economic analysis to the service sector has led to a neglect of this important sector and an over-emphasis on the manufacturing sector. This article discusses both definition and measurement problems with illustrations frgm various service activities, and ends by stating that the problems should not dissuade researchers from analysing the activities of the service sector.

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