## abstract

Recently, as seen in arguments related to rapid economic growth in the East Asian economies, studies on the difference of supply potentials among countries have attracted particular attention. To compare among countries, researchers must have accurate information on the consistency and differences in the definition and measurement of source data, particularly of capital stock. This study seeks an international comparison of the measurement of capital stock and implications for the improvement of the measurement of capital stock in Japan.

International standards of capital stock estimation are based on the “Draft International Guidelines on the National and Sector Balance - Sheet and Reconciliation Accounts of the SNA” (adopted in the 18th United Nations Statistics Committee on October, 1974; UN Draft Number E/CN.3/460) and the “Draft International Guidelines on Statistics of Tangible Assets” (submitted to the 20th United Nations Statistics Committee on February, 1979; UN Draft Number E/CN.3/508). These standards can be found in the stock part of the 1968-SNA, which was adopted in the 15th United Nations Statistics Committee on February 1968. However, as capital stock has been estimated for a long time and as each country has improved its estimation method, methods in each country are not totally consistent with these international standards. This leads to difficulties in international comparisons (see the comparison table).

The notions of capital stock, price valuation and classification of assets vary significantly from one country to another, including the estimation of average lifetime and the survival function. In Japan, gross and net capital stock are estimated based on the bench mark year method, using data from the 1955 and 1970 National Wealth Survey of Japan as initial values. Gross capital stock is estimated by industry and at constant price; net capital stock is estimated by institutional sector and by asset category, at constant and current price. Average lifetime of each asset is taken from the 1970 National Wealth Survey of Japan, and the survival function used is the “sudden death” method. Only Japan and south Korea use the benchmark year method; all other countries except Holland, which uses the direct survey method -- use the perpetual inventory method.

This article is composed of three parts. First, it surveys ideas behind the measurement of capital stock. Second, it compares methods of capital stock estimation among 17* OECD countries and south Korea. At this stage, it tries to describe the measurement of capital stock as accurately as possible, by utilizing the information the authors collected from each country's statistical authorities in addition to the existing one. Finally, based on the above-mentioned results, this study examines the extent of possible estimation biases and other potential problems on the measurement of capital stock in Japan, and suggests ways to resolve the problems; possible estimation biases of depreciation rate; possible bias accompanying the use of constant ratio of acquiring secondhand article; problems on the method of adjusting estimated capital stock data; and difference of data items from those of other countries.

$ ^{*} $ Portugal, Luxembourg and Turkey do not estimate capital stock, and materials from Austria, Iceland, New Zealand, and Spain were not available.