A user cost approach to capital measurement in aggregate production functions

Arbeitspapier

A method is proposed to measure capital services in production. This means that productive assets are weighted according to their user costs. The user costs of the individual asset classes are estimated based on data from the national accounts and other sources. The results show that, in the observation period between 1991 and 2010, enterprises' capital services expand faster than the offcially published capital stock. For the economy as a whole, this applies only to phases of cyclical expansion. As the capital stock is aggregated using asset prices, the differences can be explained by the dfferent weighting methods in conjunction with the varying speeds at which the individual asset types have accumulated over time. In growth accounting, different estimates of total factor productivity emerge. The methodological difference, however, does not significantly affect the estimates of parametric production function specifications.

Object Details

• ISBN: 978-3-86558-791-6
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bundesbank Discussion Paper ; No. 01/2012e

Classification and Topics

• Classification: Wirtschaft ; Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Index Numbers and Aggregation; Leading indicators
• Subject: Capital stock ; aggregation ; production function ; TFP ; Kapitalstock ; Aggregation ; Produktionsfunktion ; TFP ; Gesamtwirtschaftliches Anlagevermögen ; Messung ; Volkswirtschaftliche Gesamtrechnung ; Produktionsfunktion ; Produktivität ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Knetsch, Thomas A.
• Event: Veröffentlichung
• (who): Deutsche Bundesbank
• (where): Frankfurt a. M.
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/56026
• Last update: 10.03.2025, 11:42 AM CET