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Improving The Estimates of the UK Capital Stock

Published online by Cambridge University Press:  26 March 2020

David Mayes  and
Garry Young
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Extract

There is a widespread view that official estimates of the capital stock in the UK may be subject to substantial error. However, until recently making any major improvement would have incurred costs beyond any reasonable budget, so the Central Statistical Office has only been able to make relatively marginal changes despite its continuing concern about the problem. Now, as the result of the computerisation of asset records and modern accounting requirements, a radical change from existing indirect estimates towards direct estimation is possible. This note, drawn from the results of a recent research project, appraises the problem, suggests how the estimates of the capital stock in the UK might be improved using existing methods and then shows how direct estimation could be used to derive improved current and retrospective estimates.

Type
Articles
Information
National Institute Economic Review , Volume 147 , February 1994 , pp. 84 - 96
Copyright
Copyright © 1994 National Institute of Economic and Social Research

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Footnotes

∗

This note presents some of the results of a project undertaken by the National Institute for the Central Statistical Office. The statements presented here are the sole responsibility of the authors and do not necessarily represent the views of the CSO. We should like to thank Andy Blake for his advice in writing the computer programs used and Ray Barrell, Andrew Britton, Anna French, Ken Mansell, Nick Oulton and Sig Prais for their comments on an earlier draft.

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