The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities

Author/Editor:

Nazim Belhocine

Publication Date:

November 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper measures the size of the stock of intangible capital in Canada using newly released data on the market value of all securities in the economy. The approach taken relies on a quantitative application of the q-theory of investment to generate the quantity of capital owned by firms. I find that the intangible capital stock accounted for approximately 30% of overall capital since 1994. Of this intangible capital stock, the R&D reported by national accounts makes up only 23%. In addition, the finding on the magnitude of the intangible capital stock is comparable to that reported using a cost approach, confirming the size and the relevance of intangibles to macroeconomic models.

Series:

Working Paper No. 2009/250

Subject:

Depreciation Intangible capital National accounts Securities Stocks

English

Publication Date:

November 1, 2009

ISBN/ISSN:

9781451873979/1018-5941

Stock No:

WPIEA2009250

Pages:

28

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