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  1. Measuring Capital - OECD Manual 2009. Second edition.
  2. Chapters
  3. The Model
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Chapters
Preface
Acknowledgements
Executive Summary
Context, Purpose and Scope of the Manual
Introduction
How asset values are determined
Asset Retirement and the Gross Capital Stock
Depreciation or Consumption of Fixed Capital
Net ("Wealth") Capital Stock
Productive Stock and Capital Services
User Costs
Scope of Capital Measurement and Classifications
The Perpetual Inventory Method – Overview
Age-efficiency Profiles
Age-price and Depreciation Profiles
Service Lives and Retirement of Assets
Gross Fixed Capital Formation
Computing Net, Gross and Productive Capital Stocks and Depreciation
Estimating Rates of Return
Aggregation Across Assets and Industries
Special Issues in Capital Measurement
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

The Model

Content Provider OECD iLibrary
Organization OECD
Abstract The purpose of this chapter is to present, at some detail, the formal model behind capital measures. Although theoretical, this presentation is targeted towards implementation, i.e. it takes account of issues such as valuation of flows at mid-period prices that are relevant for national accounts and which sometimes complicate an algebraic presentation. At the same time, these considerations are indispensable for implementation of capital services measures. This part of the Manual starts out with a chapter on the derivation of user costs and its elements, the return to capital, depreciation and revaluation. It continues with the price-volume split of the value of capital services and finishes with capital measures in balance sheets. National accounts never work with individual assets but with cohorts. Individual assets inside a cohort are similar (ideally identical) in their specifications, were installed at the same time but exhaust their individual productive capacities over different service lives. In what follows, all variables relate to cohorts of assets, not to individual assets.
Page Count 25
Starting Page 177
Ending Page 201
Language English
Publisher OECD Publishing
Publisher Date 2009-09-01
Access Restriction Open
Subject Keyword Economics
Content Type Text
Resource Type Chapter
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