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Improving the estimates of the UK capital stock.
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Popular opinion states that official estimates of the UK capital stocks may be erroneous. Computerisation of asset records and modern accounting have made it possible to directly estimate capital stock. The reason for the miscalculation or mismeasurement of the capital stock is due to the inclusion of capital scrapped by firms going out of business in the measured stock. No changes in the service lives of capital used by operating firms is possible. Major attempts at estimating capital lost from plant closures must be made.
Introduction
There is a widespread view that official estimates ...
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