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Integrated estimates of capital stocks and services for the United Kingdom: 1950-2013

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  • Oulton, Nicholas
  • Wallis, Gavin

Abstract

This paper presents annual estimates of fixed capital stocks and capital services for the United Kingdom, 1950-2013, for the whole economy and for the market sector. Our estimates cover eight asset types (structures, machinery, vehicles, computers, purchased software, own-account software, mineral exploration and artistic originals) and also a ninth, R&D, from 1981 to 2013. We compare the effect on the estimates of capital services of using either an exogenous (ex post) rate of return or an endogenous one. The latter uses a model which allows for ex ante risk: firms’ expectations may not be satisfied so the realised rate of return may not be equalised across assets. We see how much the inclusion of R&D matters. We also look at what has happened to capital intensity (capital services per hour worked) in the Great Recession, a period when labour productivity fell in the UK. And we consider the evolution of the aggregate depreciation rate and of capital consumption as a proportion of GDP.

Suggested Citation

  • Oulton, Nicholas & Wallis, Gavin, 2015. "Integrated estimates of capital stocks and services for the United Kingdom: 1950-2013," LSE Research Online Documents on Economics 61697, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:61697
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    File URL: http://eprints.lse.ac.uk/61697/
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    References listed on IDEAS

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    1. Robert Inklaar, 2010. "The Sensitivity Of Capital Services Measurement: Measure All Assets And The Cost Of Capital," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(2), pages 389-412, June.
    2. Mariela Dal Borgo & Peter Goodridge & Jonathan Haskel & Annarosa Pesole, 2013. "Productivity and Growth in UK Industries: An Intangible Investment Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(6), pages 806-834, December.
    3. Nicholas Oulton, 2007. "Ex Post Versus Ex Ante Measures Of The User Cost Of Capital," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(2), pages 295-317, June.
    4. Nicholas Oulton & Ana Rincon-Aznar, 2009. "Rates of Return and Alternative Measures of Capital Input: 14 Countries and 10 Branches, 1971-2005," CEP Discussion Papers dp0957, Centre for Economic Performance, LSE.
    5. Carol Corrado & Charles Hulten & Daniel Sichel, 2009. "Intangible Capital And U.S. Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 661-685, September.
    6. Peter Goodridge & Jonathan Haskel & Gavin Wallis, 2013. "Can Intangible Investment Explain the UK Productivity Puzzle?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 224(1), pages 48-58, May.
    7. Abdul Azeez Erumban, 2008. "Rental Prices, Rates of Return, Capital Aggregation and Productivity: Evidence from EU and US," CESifo Economic Studies, CESifo, vol. 54(3), pages 499-533, September.
    8. Gavin Wallis, 2009. "Capital Services Growth in the UK: 1950 to 2006," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(6), pages 799-819, December.
    9. Berndt, Ernst R. & Fuss, Melvyn A., 1986. "Productivity measurement with adjustments for variations in capacity utilization and other forms of temporary equilibrium," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 7-29.
    10. Nicholas Oulton, 2013. "Medium and long run prospects for UK growth in the aftermath of the financial crisis," Discussion Papers 1307, Centre for Macroeconomics (CFM).
    11. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, June.
    12. Christensen, Laurits R & Jorgenson, Dale W, 1969. "The Measurement of U.S. Real Capital Input, 1929-1967," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 15(4), pages 293-320, December.
    13. John Appleton & Gavin Wallis, 2011. "Volume of capital services: new annual and quarterly estimates for 1950 to 2009," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 5(5), pages 46-66, May.
    14. Schreyer, Paul, 2002. "Computer Price Indices and International Growth and Productivity Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 15-31, March.
    15. repec:dgr:rugggd:gd-103 is not listed on IDEAS
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    More about this item

    Keywords

    Capital services; capital stocks; rate of return; ex post; hybrid;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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