On Imputing for Financial Services in the National Accounts: Commercial Banking in General Equilibrium

John M. Hartwick

No 946, Working Papers from Queen's University, Department of Economics

Abstract: We combine the income and capital accounts of financial intermediaries (commercial banks) and of non-financial firms and households to obtain a full accounting of the value of services provided by commercial banks to both depositors and borrowers. We track the payments for such services and find no missing items that need to be imputed for. So-called imputation turns out to be integration of the accounts of financial institutions with their borrowers and depositors. We also find that a large fraction of banking services are purely intermediate and thus that the net value-added, after integration, of the commercial banking sector in the total value-added of the economy is small. We also isolate terms that should be in the national accounts to represent the burden of risk-bearing by equity holders (an entry for apparent profits of firms). Deposits as a stock of money in our economy is analyzed.

Keywords: National accounting; Imputations; Commercial banks; General equilibrium (search for similar items in EconPapers)
JEL-codes: E44 G21 D46 (search for similar items in EconPapers)
Date: Written

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