Supply-side estimates of UK investment

Graeme Chamberlin
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Graeme Chamberlin: Office for National Statistics

Economic & Labour Market Review, 2008, vol. 2, issue 10, 52-56

Abstract: Describes how the commodity flow model can be used for such estimates and discusses advantages and disadvantages of this approachThe UK is unusual among membercountries of the Organisation forEconomic Co-operation and Developmentin using business surveys on investmentexpenditure to estimate almost all nonresidentialinvestment: a demand-sideapproach. More commonly, estimates ofinvestment (or more precisely, gross fi xedcapital formation) are generated usingavailable data on the supply of capitalgoods to the economy – a commodityfl ow model. This article describes howthe commodity fl ow model can be usedto form supply-side estimates of UKinvestment and discusses some of theadvantages and disadvantages of thisapproach. Economic & Labour Market Review (2008) 2, 52–56; doi:10.1057/elmr.2008.155

Date: 2008
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