Capital - in particular of the physical sort - plays several roles in economic life: it constitutes wealth and it it provides services in production processes. Capital is invested, disinvested and it depreciates and becomes obsolescent and there is a question how to measure all these dimensions of capital in industry and national accounts. This revised Capital Manual is a comprehensive guide to the approaches toward capital measurement. It gives statisticians, researchers and analysts practical advice while providing theoretical background and an overview of the relevant literature. The manual comes in three parts - a first part with a non-technical description with the main concepts and steps involved in measuring capital; a second part directed at implementation and a third part outlining theory and a more complete mathematical formulation of the measurement process.
Table of contents:
Preface Acknowledgements Executive Summary Chapter 1. Context, Purpose and Scope of the Manual PART I. CAPITAL STOCKS AND CAPITAL SERVICES - CONCEPTS Chapter 2. Introduction Chapter 3. How Asset Values are Determined Chapter 4. Asset Retirement and the Gross Capital Stock Chapter 5. Depreciation or Consumption of Fixed Capital Chapter 6. Net (“Wealth”) Capital Stock Chapter 7. Productive Stock and Capital Services Chapter 8. User Costs PART II. MEASURING CAPITAL STOCKS AND SERVICES - IMPLEMENTATION Chapter 9. Scope of Capital Measurement and Classifications Chapter 10. The Perpetual Inventory Method – Overview Chapter 11. Age-efficiency Profiles Chapter 12. Age-price and Depreciation Profiles Chapter 13. Service Lives and Retirement of Assets Chapter 14. Gross Fixed Capital Formation Chapter 15. Computing Net, Gross and Productive Capital Stocks and Depreciation Chapter 16. Estimating Rates of Return Chapter 17. Aggregation Across Assets and Industries Chapter 18. Special Issues in Capital Measurement PART III. CAPITAL STOCKS AND CAPITAL SERVICES - THEORY Chapter 19. The Model Annex A - Asset service lives Annex B - Implementation of capital estimates using an artificial dataset Annex C - Simplified perpetual inventory method Annex D - Links between age-efficiency and age-price profiles Glossary