The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities
AbstractThis paper measures the size of the stock of intangible capital in Canada using newly released data on the market value of all securities in the economy. The approach taken relies on a quantitative application of the q-theory of investment to generate the quantity of capital owned by firms. I find that the intangible capital stock accounted for approximately 30% of overall capital since 1994. Of this, the R&D reported by national accounts makes up only 23%. These results imply that official Canadian statistics failed to account for 26% of the value of the capital stock in their 2005 quarterly data collection. In addition, I find that the magnitude of the intangible capital stock is comparable to that reported using a cost approach, confirming the size of the findings and ascertaining the need to include intangibles in empirical models and in investment data.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1216.
Length: 30 pages
Date of creation: Sep 2008
Date of revision:
q-Theory; Unrecorded Capital; Intangible Capital;
Other versions of this item:
- Nazim Belhocine, 2009. "The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities," IMF Working Papers 09/250, International Monetary Fund.
- E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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