Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192347 
Year of Publication: 
2007
Series/Report no.: 
Discussion Papers No. 365
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
We propose a new method for estimating capital stocks at the firm level by combining business accounts information and investment data. The method also produces capital estimates at the sector or industry level by summing individual firms' capital stocks and appropriately inflating this sum to account for firms with missing data. Our approach has two major advantages compared with the much used Perpetual Inventory Method (PIM). First, long investment series are not necessary. Second, sector capital estimates are automatically adjusted for changes in the capital stock because of entry and exit of firms. While capital growth rates in Norwegian manufacturing were only 1 percent on average during 1993--2004 according to national accounts figures, our method yields much higher growth rates of 5.5 percent on average.
Subjects: 
Capital measurement
Accounts data
Firm panel data
Net capital stocks
Depreciation
JEL: 
C13
C23
D24
E22
M40
Additional Information: 
A revised version
Document Type: 
Working Paper

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