Comparing financial centers by using gross value added as main indicator

...We demonstrate how the financial sector’s net output and service production can be measured using aggregate financialstatement data. We briefly examine current treatments of financial services in the national income accounts and introduce aconceptual framework for the construction of a financial firm’s output measure consistent with the accounting approaches.Financial institutions in different countries do different things. While London, New York and Tokyo may be the primaryplaces for certain products, other centers may be equally or more important for others. If one were looking for a metric foran one-dimensional ranking of financial centers by size value-added in financial services would be most appropriate.1 It canbe compared from company to company and country to country. Therefore the concept of “value added” is adopted tocircumvent some of the difficulties...