Measuring Capital in the New Economy

Measuring Capital in the New Economy

Carol Corrado, John Haltiwanger, and Daniel Sichel

Print publication date: 2013

ISBN: 9780226116129

Publisher: University of Chicago Press

Abstract

As the accelerated technological advances of the past two decades continue to reshape the United States' economy, intangible assets and high-technology investments are taking larger roles. These developments have raised a number of concerns, such as: how do we measure intangible assets? Are we accurately appraising newer, high-technology capital? The answers to these questions have broad implications for the assessment of the economy's growth over the long term, for the pace of technological advancement in the economy, and for estimates of the nation's wealth. This book offers new approaches for measuring capital in an economy that is increasingly dominated by high-technology capital and intangible assets. As the chapters show, high-tech capital and intangible assets affect the economy in ways that are notoriously difficult to appraise. In this detailed analysis of the problem and its solutions, the chapters study the nature of these relationships and provide guidance as to what factors should be included in calculations of different types of capital for economists, policymakers, and the financial and accounting communities alike.

Table of Contents

Introduction

Carol Corrado, John Haltiwanger and Daniel Sichel

1 Measuring Capital and Technology: An Expanded Framework

Carol Corrado, Charles Hulten, and Daniel Sichel

3 The Valuation of Organization Capital

Baruch Lev and Suresh Radhakrishnan

4 Intangible Risk

Lars Peter Hansen, John C. Heaton, and Nan Li

5 The Relation among Human Capital, Productivity, and Market Value

John M. Abowd, John Haltiwanger, Ron Jarmin, Julia Lane, Paul Lengermann, Kristin McCue, Kevin McKinney, and Kristin Sandusky

6 Measuring Organizational Capital in the New Economy

Sandra E. Black and Lisa M. Lynch

8 R&D in the National Income and Product Accounts

Barbara M. Fraumeni and Sumiye Okubo

10 Information-Processing Equipment and Software in the National Accounts

Bruce T. Grimm, Brent R. Moulton, and David B. Wasshausen

Remarks

Robert E. Hall