Extended Measures of Investment and Saving

Depta, Peter and Ravalli, Frank and Harding, Don (1994): Extended Measures of Investment and Saving.

Abstract

National accountants treat as consumption all expenditure incurred in purchasing consumer durables and in forming intangible assets such as knowledge, education and good health. The case is made in this paper that the national accounts measures of saving and investment understate both the extent to which we save and the extent of the resources that we allocate to investment. Moreover, the national accounts data do not allow us to monitor substitution between tangible and intangible assets.

• Item Type: MPRA Paper
• Institution: Policy Research Unit, The Commonwealth Treasury
• Language: English
• Keywords: Saving; Investment; National accounts; Knowledge; Human Capital; Physical Capital; Intangible Capital
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E20 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth

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