The Measurement of Capital Services in the Czech Republic
Abstract
When the contribution of capital to aggregate production is to be quantified, a measure of capital services should be used. In this paper I present two experimental measures of capital services for the Czech economy using the OECD methodology. These measures use information on the structure of capital assets by asset type and by the industry in which the capital is used. They weight the contributions of different types of assets by their marginal product instead of by their price, which is the case when using the net capital stock. The analysis shows that growth in the net capital stock, if used as an input into the production function, underestimates the growth of capital input especially in periods of strong investment in highly productive capital assets.Download Info
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Paper provided by Czech National Bank, Research Department in its series Working Papers with number 2008/11.Length:
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:cnb:wpaper:2008/11
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Related research
Keywords: Capital services; growth accounting; production function; total factor productivity.;Find related papers by JEL classification:
- E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-03 (All new papers)
- NEP-EFF-2009-07-03 (Efficiency & Productivity)
- NEP-MAC-2009-07-03 (Macroeconomics)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kamil Galuscak & Lubomir Lizal, 2011.
"The Impact of Capital Measurement Error Correction on Firm-Level Production Function Estimation,"
Working Papers
2011/09, Czech National Bank, Research Department.
- Lubomir Lizal & Kamil Galuščák, 2012. "The Impact of Capital Measurement Error Correction on Firm-Level Production Function Estimation," William Davidson Institute Working Papers Series wp1026, William Davidson Institute at the University of Michigan.
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