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New Estimates of State and Local Government Tangible Capital and Net Investment

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  • Michael J. Boskin
  • Marc S. Robinson
  • Alan M. Huber

Abstract

Measures of the state and local government capital stock and investment are necessary inputs into several areas of economic analysis, including the measurement of national wealth and its growth. We estimate net investment and depreciation of state and local government nonresidential capital. In aggregate, we estimate a net state and local nonresidential capital stock of $1.8 trillion in 1985, 17% larger than that estimated by the Bureau of Economic Analysis. Net state and local government investment has exceeded the state and local deficit annually for the last forty-five years. While the fraction of state and local purchase of goods and services devoted to net investment has fallen, it has exceeded federal government net capital formation except during defense buildups and has averaged more than 40% of private fixed nonresidential net investment since 1951. Similar comparisons reveal that the state and local government net capital stock substantially exceeds state and local debt, and is about twice the federal government capital stock.

Suggested Citation

  • 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.
    • Handle: RePEc:nbr:nberwo:2131
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    1. Michael J. Boskin & Marc S. Robinson & Terrence O' Reilly & Praveen Kumar, 1984. "New Estimates of the Value of Federal Mineral Rights and Land," UCLA Economics Working Papers 357, UCLA Department of Economics.
    2. Boskin, Michael J, et al, 1985. "New Estimates of the Value of Federal Mineral Rights and Land," American Economic Review, American Economic Association, vol. 75(5), pages 923-936, December.
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    Cited by:

    1. Christophe Kamps, 2006. "New Estimates of Government Net Capital Stocks for 22 OECD Countries, 1960-2001," IMF Staff Papers, Palgrave Macmillan, vol. 53(1), pages 1-6.
    2. Holtz-Eakin Douglas & Rosen Harvey S. & Tilly Schuyler, 1994. "Intertemporal Analysis of State and Local Government Spending: Theory and Tests," Journal of Urban Economics, Elsevier, vol. 35(2), pages 159-174, March.
    3. Kyriakos Emmanouilidis & Christos Karpetis & Erotokritos Varelas & Spyros Zikos, 2017. "The dynamic evolution of the Greek regional net fixed capital time series," Economic Change and Restructuring, Springer, vol. 50(3), pages 211-238, August.
    4. Boskin, Michael J. & Robinson, Marc S. & Huber, Alan M., 1987. "Government Saving, Capital Formation and Wealth in the United States, 1947-1985," CEPR Publications 244416, Stanford University, Center for Economic Policy Research.

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