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Využití alternativních metod při odhadech stavů a spotřeby fixního kapitálu
[Alternative Methods for Measuring of Fixed Capital]

Author

Listed:
  • Igor Krejčí
  • Jaroslav Sixta

Abstract

The article focuses on alternative approaches of fixed capital measurement. The official direct estimation for Czech economy is based on straight line depreciation profile. This article presents the results based on the application of geometric depreciation profile on appropriate types of assets. Alternative consumption and net stock of fixed assets are presented. The impact on GDP of such changes is evaluated. New model of perpetual inventory method is transformed to Markov chain. Such transformation leads to easy estimation of average age of fixed assets. Such estimation is suitable for asset with short average service lives. The article presents average age for machinery and equipment. All calculations focus on development between 1995 and 2010.

Suggested Citation

  • Igor Krejčí & Jaroslav Sixta, 2012. "Využití alternativních metod při odhadech stavů a spotřeby fixního kapitálu [Alternative Methods for Measuring of Fixed Capital]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(6), pages 780-800.
    • Handle: RePEc:prg:jnlpol:v:2012:y:2012:i:6:id:877:p:780-800
    DOI: 10.18267/j.polek.877
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    References listed on IDEAS

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    1. Jorgenson, Dale W, 1996. "Empirical Studies of Depreciation," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 24-42, January.
    2. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1.
    3. Hulten, Charles R & Wykoff, Frank C, 1996. "Issues in the Measurement of Economic Depreciation: Introductory Remarks," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 10-23, January.
    4. Mojmír Hájek & Jiří Mihola, 2009. "Analýza vlivu souhrnné produktivity faktorů na ekonomický růst České republiky [Analysis of Total Factor Productivity Contribution to Economic Growth of the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(6), pages 740-753.
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    6. W. Erwin Diewert, 2005. "Issues in the Measurement of Capital Services, Depreciation, Asset Price Changes, and Interest Rates," NBER Chapters, in: Measuring Capital in the New Economy, pages 479-556, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    national accounts; fixed capital; perpetual inventory method; consumption of fixed capital; depreciation pattern; average age of asset;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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