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MEASURING THE VALUE OF THE CAPITAL STOCK BY DIRECT OBSERVATION
Author(s) -
Lock J. D.
Publication year - 1985
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.1475-4991.1985.tb00503.x
Subject(s) - valuation (finance) , stock (firearms) , economics , order (exchange) , stock exchange , capital (architecture) , value (mathematics) , business , actuarial science , finance , statistics , mathematics , engineering , mechanical engineering , archaeology , history
In the Netherlands the Central Bureau of Statistics (C.B.S.) carried out two experimental investigations into the possibility of observing the actual value of the capital stock by means of enquiries at enterprises. This article reports on the investigation into the cigar‐industry. The intention is to carry out enquiries in one branch of industry after another. In due course (for instance after 10 years) it will again be the turn of the first branch of industry and so on. There are also branches of industry which have a fair amount of information regarding capital assets available at their disposal, so that enquiries are not necessary. In the long run the method described will supply statistical data on the value of the capital stock for all branches of industry together. The gross actual value at current and constant prices is calculated for the cigar‐industry, broken down by type and vintage. The enquiry was carried out in two steps. Questionnaires were not sent to the enterprises but they were visited in order that C.B.S. staff could derive the data required from the accounts available. Within the C.B.S. this information was processed, C.B.S. staff making estimates for lacking data. It may be concluded that this method of enquiry for the capital stock is difficult but useful. The results of the enquiry are comparable throughout, the valuation having been carried out in the same way for all enterprises and care having been taken that in each enterprise all means of production were asked for. In the future this new technique of enquiry will provide good detailed information on the capital stock in the Netherlands.