Rates of Return and Capital Aggregation, Using Alternative Rental Prices (Classic Reprint) - Softcover

Michael J. Harper

Softcover

ISBN 10: 1330666607 ISBN 13: 9781330666609

Publisher: Forgotten Books, 2018

Synopsis

Excerpt from Rates of Return and Capital Aggregation, Using Alternative Rental Prices

The basic issue in measuring capital input service prices is that capital goods are durable, and since rental markets for most durable inputs are not sufficiently widespread, it is usually not possible to observe the appropriate service price as the result of a market transaction. Under these conditions, the economic statistician must appeal to the theorist for assistance in deriving a rental price formula sufficient to impute rental prices for capital assets from observable data. These imputed rental prices can then be combined with estimates of capital input service flows to calculate the rental cost share weights required to compute the aggregate capital services.

Nhile economic theory has provided important guidance in the specification of rental price formulae, it as yet has not been able to resolve completely all the empirical questions that the economic statistician must answer. Most importantly, two critical components of the asset-specific rental prices are: (i) the expected rate of return, and (ii) the expected capital gains terms. Empirical implementation of these expected rates of return and capital gains components typically requires making certain choices about which economic theory offers little guidance. For example, are expectations on capital gains myopic.

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About this title

About the Author

Charles R. Hulten is a professor of economics at the University of Maryland. He has been a senior research associate at the Urban Institute and is chair of the Conference on Research in Income and Wealth of the National Bureau of Economic Research.
Edwin R. Dean, formerly an associate commissioner for Productivity and Technology at the Bureau of Labor Statistics, is an adjunct professor of economics at The George Washington University.
Michael J. Harper is the chief of the Division of Productivity Research at the Bureau of Labor Statistics.

Edition details

• Publisher: Forgotten Books
• Publication date: 2018
• Language: English
• ISBN 10: 1330666607
• ISBN 13: 9781330666609
• Binding: Paperback
• Number of pages: 63