Finance:Capital services
In economics, capital services refer to a chain-type index of service flows derived from the stock of physical assets and software. These assets are coordination, equipment, software, structures, land, and inventories. Capital services are estimated as a capital-income weighted average of the growth rates of each asset. Capital services differ from capital stocks because short-lived assets such as equipment and software provide more services per unit of stock than long-lived assets such as land.[1] Unlike capital goods, capital services are owned by the person or group of people providing them.[2]
Role in productivity measurement
Capital services are widely used in growth accounting frameworks to measure the contribution of capital inputs to productivity. The OECD notes that capital services provide a more accurate measure of productive input than capital stock, because they reflect the flow of services generated by different types of assets rather than their replacement value. Short-lived assets such as machinery or software typically have higher service flows per unit of stock than long-lived assets such as structures and land.[3]
See also
- Bureau of Labor Statistics
- Capital goods
- Capital stocks
- Progressive theory of capital
References
- ↑ "BLS Information". Glossary. U.S. Bureau of Labor Statistics Division of Information Services. February 28, 2008. http://www.bls.gov/bls/glossary.htm. Retrieved 2009-05-05.
- ↑ "Capital Goods and Services". University of North Carolina. http://www.unc.edu/~mason/money/capital.html. Retrieved 2009-05-06.
- ↑ "OECD Productivity Manual: Measurement of Aggregate and Industry-Level Productivity Growth". Organisation for Economic Co-operation and Development. 2001. https://www.oecd.org/en/about/directorates/statistics-and-data-directorate.html.
External links
- Capital services in glossary, U.S. Bureau of Labor Statistics Division of Information Services
- Capital Goods and Services, University of North Carolina
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