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New Estimates of Federal Government Tangible Capital and Net Investment

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  • Michael J. Boskin
  • Marc S. Robinson
  • John M. Roberts

Abstract

Government capital formation raises a number of issues important to national economic well-being, yet the U.S., unlike most advanced countries, does not account for capital in its formal budget documents. We estimate depreciation of government capital using a methodology developed by Hulten and Wykoff which is based on used asset price data. We estimate a federal government net nonresidential capital stock of over $800 billion in 1984, more than 20% higher than estimated by the BEA. We also find much larger net federal investment since World War II than the BEA. The behavior of military and civilian structures and equipment is also examined.We analyze the potential importance of these results for measuring the net national savings rate, national wealth, the trend in government capital formation relative to private capital formation, and the relationship between net investment and deficits.

Suggested Citation

  • Michael J. Boskin & Marc S. Robinson & John M. Roberts, 1985. "New Estimates of Federal Government Tangible Capital and Net Investment," NBER Working Papers 1774, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:1774
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    References listed on IDEAS

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    Cited by:

    1. Michael J. Boskin, 1988. "Issues in the Measurement and Interpretation of Saving and Wealth," NBER Working Papers 2633, National Bureau of Economic Research, Inc.
    2. Pritchett, Lant, 2000. "The Tyranny of Concepts: CUDIE (Cumulated, Depreciated, Investment Effort) Is Not Capital," Journal of Economic Growth, Springer, vol. 5(4), pages 361-384, December.
    3. Boskin, Michael J., 1988. "Issues in the Measurement and Interpretation of Saving and Wealth," CEPR Publications 244418, Stanford University, Center for Economic Policy Research.
    4. D. Mark Anderson & Resul Cesur & Erdal Tekin, 2015. "Youth Depression And Future Criminal Behavior," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 294-317, January.
    5. Boskin, Michael J., 1987. "Concepts and Measures of Federal Deficits and Debt and their Impact on Economic Activity," CEPR Publications 244437, Stanford University, Center for Economic Policy Research.
    6. Pritchett, Lant, 1996. "Mind your P's and Q's : the cost of public investment is not the value of public capital," Policy Research Working Paper Series 1660, The World Bank.
    7. Alfredo M. Pereira, 1995. "Equal Yield Tax Alternatives and Government Deficits," Public Finance Review, , vol. 23(1), pages 40-71, January.
    8. Michael J. Boskin & Marc S. Robinson & Alan M. Huber, 1987. "New Estimates of State and Local Government Tangible Capital and Net Investment," NBER Working Papers 2131, National Bureau of Economic Research, Inc.

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