Chile's Capital Stock Growth Surpasses Expectations, Boosting Economic Stability.
The article discusses how capital stock in Chile was measured from 1985 to 2005. They used a method called the Perpetual Inventory Method to estimate capital stocks for different types of assets and economic activities. By assuming different patterns of asset retirement and survival, they found that the average service lives of assets are crucial. The results show a steady increase in net capital stocks compared to the country's GDP, reaching 2.3% from 1996 to 2005. The consumption of fixed capital as a percentage of GDP was 10.4% from 2003 to 2005, lower than the National Accounts measure of 12%.