 Measurement of Capital Stock: The PIM and the Equivalent Proportional Depreciation ApproachMadhusudan Datta
Indian Economic Review, 2006, vol. 41, issue 2, 173-194 Abstract: Estimation of capital stock appropriate for productivity analyses is a tricky problem. PIM can at best be considered a passable estimate of the asset value of capital goods or the wealth stock. An alternative to the PIM is the OHSM. For a uniform exponential growth of investment there exist equivalent proportional rates of depreciation (EPD) of capital stock for both the OHSM and the PIM. Use of the formulae for EPD can help in obtaining acceptable estimates of capital stock using data on gross fixed capital formation when estimates are not available from authentic sources. Moreover, EPD can be derived by using suitable assumptions to estimate service capital appropriate for use as an argument of the production function. Keywords: perpetual inventory method; one-hoss-shay method; equivalent proportional depreciation; age-efficiency profile; service capital (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:41:y:2006:i:2:p:173-194 Ordering information: This journal article can be ordered from Access Statistics for this article Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC. |
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