Chapter

Measuring Capital and Technology: An Expanded Framework

Carol Corrado, Charles Hulten and Daniel Sichel

in Measuring Capital in the New Economy

Published by University of Chicago Press

Published in print October 2005 | ISBN: 9780226116129
Published online February 2013 | e-ISBN: 9780226116174 | DOI: http://dx.doi.org/10.7208/chicago/9780226116174.003.0002
Measuring Capital and Technology: An Expanded Framework

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This chapter provides guidance on what components of business spending should be included in measures of capital investment. It presents a model that defines capital investment as any outlay that is intended to increase future rather than current consumption should be treated as investment. This chapter explains that a significant portion of investment in traditional equipment and structures is excluded from the existing investment figures in U.S. national income and product accounts (NIPAs) and suggests that a move to recognize intangible capital might alter our understanding of the factors determining economic growth.

Keywords: business spending; capital investment; U.S; NIPAs; intangible capital; economic growth

Chapter.  15457 words.  Illustrated.

Subjects: Econometrics and Mathematical Economics

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