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ESTIMATES OF CAPITAL STOCK BY INDUSTRIES FOR AUSTRIA *
Author(s) -
Hahn Franz,
Schmoranz Ingo
Publication year - 1984
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1984.tb00553.x
Subject(s) - economics , econometrics , stock (firearms) , capital (architecture) , fixed capital , investment (military) , capital formation , mathematics , microeconomics , engineering , financial capital , mechanical engineering , profit (economics) , archaeology , politics , political science , law , history
The present investigation is the first attempt to calculate gross capital stocks for 19 industries which together cover the whole Austrian economy. A production‐oriented concept of capital formed the basis of the investigation; the estimation procedure follows that of C. Almon et al. In contrast to the traditional perpetual‐inventory methods, Almon's modified estimation technique combines the advantages of differentiated cumulation containing a logistical retention function with relatively moderate requirements with respect to investment data. A thorough description of this estimation technique is given in the third section of the paper, combined with a number of comparative model calculations. These demonstrate very clearly that capital stock figures calculated according to the Almon method rarely deviate from those found with the help of the traditional inventory method, which requires considerably more information and uses more complicated calculation procedures. Finally, the sectorally disaggregated capital stock estimates calculated according to the Almon method are presented with some interpretative remarks.