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Types of Capital and their Measurement

Author

Listed:
  • Martin, Josh
  • Nakamura, Leonard
  • Soloveichik, Rachel

Abstract

Capital is notoriously heterogeneous, including physical, human and natural capitals, and this heterogeneity can make measurement very difficult. To bring some structure to the wide range of capital assets, and inform measurement, we establish a set of five dimensions of capital in order to classify capital types: tangible or intangible; produced or non-produced; standardized or non-standardized; exclusive or non-exclusive; and fixed or non-fixed. Based on a cross-classification of these dimensions, we identify a range of capital types, and use this to draw some lessons for measurement. We highlight which valuation methods best measure which types of capital. Non-standardized assets are hard to measure due to a lack of markets and comparators, while non-exclusive assets are hard to value since the value to the owner is not exhaustive.

Suggested Citation

  • Martin, Josh & Nakamura, Leonard & Soloveichik, Rachel, 2024. "Types of Capital and their Measurement," Discussion Papers escoe-dp-2024-14, Economic Statistics Centre of Excellence.
    • Handle: RePEc:eoe:escoed:escoe-dp-2024-14
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    References listed on IDEAS

    as
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    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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