Capital stocks and capital services: integrated and consistent estimates for the United Kingdom, 1950–2013

Oulton, Nicholas and Wallis, Gavin (2016) Capital stocks and capital services: integrated and consistent estimates for the United Kingdom, 1950–2013. Economic Modelling, 54. pp. 117-125. ISSN 0264-9993

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Abstract

The evolution of capital services is crucial for understanding labour productivity growth. Capital stocks and the wealth–income ratio are important for understanding welfare and inequality. Accordingly, we present annual estimates of fixed capital services and capital stocks for the United Kingdom, 1950–2013, for the whole economy and for the market sector. Our estimates cover nine asset types including R&D. We compare estimates of capital services based on an endogenous (ex post) rate of return with ones based on a hybrid method which allows for ex ante risk: firms' expectations may not be satisfied. Contrary to expectation, we find that capital intensity (capital services per hour worked) rose during the Great Recession even though labour productivity fell. And the wealth–income ratio is now substantially lower than it was in the early 1980s unless dwellings are included in the total.

Item Type:	Article
Official URL:	http://www.elsevier.com/locate/issn/02649993
Additional Information:	© 2015 Elsevier B.V.
Divisions:	Centre for Macroeconomics
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance
JEL classification:	D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E22 - Capital; Investment (including Inventories); Capacity E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E23 - Production O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence
Date Deposited:	09 Feb 2016 15:26
Last Modified:	07 Jan 2024 18:09
URI:	http://eprints.lse.ac.uk/id/eprint/65300

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