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ESTIMATES OF THE AGGREGATE QUARTERLY CAPITAL STOCK FOR THE POST‐WAR U.S. ECONOMY
Author(s) -
Levy Daniel,
Chen Haiwei
Publication year - 1994
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.1475-4991.1994.tb00072.x
Subject(s) - economics , capital good , depreciation (economics) , business cycle , physical capital , capital formation , macroeconomics , monetary economics , fixed investment , stock (firearms) , consumption of fixed capital , capital (architecture) , financial capital , economy , goods and services , microeconomics , market economy , human capital , mechanical engineering , history , archaeology , engineering , profit (economics)
We construct quarterly aggregate gross and net capital stock series for the post‐war U.S. economy using annual capital stock, capital depreciation, and capital discard figures along with quarterly investment series. We construct nominal and real measures of all three categories in the aggregate capital stock: consumer durable goods, producer durable goods, and business structures. In constructing the nominal series we take into account the changes in capital goods' prices. The series are constructed using four different methods. Using time‐ and frequency‐domain techniques, we compare the constructed series and characterize their short‐run, business cycle, and long‐run cyclical properties. We find that the constructed series exhibit very different cyclical and shock persistence dynamics. Practial implications are discussed.