The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities
November 1, 2009
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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.
Subject: Depreciation, Intangible capital, National accounts, Securities, Stocks
Keywords: depreciation rate, market value, national income, shadow price, WP
Pages:
28
Volume:
2009
DOI:
Issue:
250
Series:
Working Paper No. 2009/250
Stock No:
WPIEA2009250
ISBN:
9781451873979
ISSN:
1018-5941
