Price and Real Output Measures for the Education Function of Government: Exploratory Estimates for Primary & Secondary Education

57 Pages Posted: 22 Jun 2008 Last revised: 11 Jul 2022

See all articles by Barbara Fraumeni

Barbara Fraumeni

U.S. Bureau of Economic Analysis (BEA); National Bureau of Economic Research (NBER)

Marshall B. Reinsdorf

U.S. Department of Commerce - Bureau of Economic Analysis (BEA)

Brooks B. Robinson

affiliation not provided to SSRN

Matthew P. Williams

Columbia University

Date Written: June 2008

Abstract

In a previous paper, the authors took the first step in their research on measuring the education function of government by estimating real output measures (Fraumeni, et. al. 2004). In this paper, chain-type Fisher quantity indexes for those output measures are calculated to be more consistent with Bureau of Economic Analysis (BEA) methodology and the real output measures presented in the previous paper are refined. In addition, and more importantly, implicit price deflators are presented to give a more complete picture. Alternative price and real output measures are compared; it is clear that methodology choice matters. Price change is always greater than quantity change for the periods given; however, price changes are overstated to the extent quality changes are not captured in the quantity indexes. Quality-adjustments continue to be the most challenging aspect of decomposing nominal expenditures for government-provided education into price and quantity components.

Suggested Citation

Fraumeni, Barbara and Reinsdorf, Marshall B. and Robinson, Brooks B. and Williams, Matthew P., Price and Real Output Measures for the Education Function of Government: Exploratory Estimates for Primary & Secondary Education (June 2008). NBER Working Paper No. w14099, Available at SSRN: https://ssrn.com/abstract=1149345

Barbara Fraumeni (Contact Author)

U.S. Bureau of Economic Analysis (BEA) ( email )

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National Bureau of Economic Research (NBER) ( email )

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Marshall B. Reinsdorf

U.S. Department of Commerce - Bureau of Economic Analysis (BEA) ( email )

1441 L Street NW
Washington, DC 20910
United States

Brooks B. Robinson

affiliation not provided to SSRN

Matthew P. Williams

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

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