New method reveals true size of government capital stocks globally.
The report discusses how to estimate the government's stock of fixed capital, which is important for making productivity adjustments. In the past, estimates were based on each country's total government investment over 10 years, but this method was not very accurate. A new method using government investment data from a single year, along with assumptions about depreciation and growth rates, provides a better estimate of government capital stocks. This method can be used by countries or global offices to improve the accuracy of these estimates.