No. 434: A Benchmark Estimate for the Capital Stock. An Optimal Consistency Method
Jose Miguel Albala-Bertrand ,
Queen Mary, University of London
February 1, 2001
There are alternative methods to estimate a capital stock for a benchmark year. These methods, however, do not allow for an independent check, which could establish whether the estimated benchmark level is too high or too low. I propose here an optimal consistency method (OCM), which may allow estimating a capital stock level for a benchmark year and/or checking the consistency of alternative estimates of a benchmark capital stock.
J.E.L classification codes: O4, B4
Keywords:Benchmark capital, Perpetual inventory method (PIM), Optimal consistency method (OCM)