Wholesale and Retail Service Price Indices in Japan: Retrospective Measurement from 1955

Author Name NOMURA Koji (Faculty Fellow, RIETI)
Creation Date/NO. February 2020 20-J-007
Research Project Productivity Gaps and Industrial Competitiveness
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This paper develops a wholesale and retail service production database of Japan (WRJ) at a level subdivided into 5,740 categories for wholesale and 6,888 categories for retail, in order to re-examine the price-quantity breakdown of production values of wholesale and retail services and to revise the productivity account for commercial industry. According to our examinations based on WRJ, the current estimate on the service price of commerce in the Japanese system of national accounts (JSNA) is underestimated for 1980–2005. And conversely, it is highly likely that it is overestimated for 2005–17, in which all WRJ estimates based on different assumptions declined and the KLEMS aggregate input price in commercial industry also declined, whereas only the current JSNA estimate is increasing. It suggests that during this period, the growth rate of total factor productivity in commerce industry is underestimated by 0.3% per annum.