The Stock of Intangible Capital in Canada : Evidence from the Aggregate Value of Securities / Nazim Belhocine.

Format:

Book

Government document

Author/Creator:

Belhocine, Nazim.

Contributor:

International Monetary Fund. Western Hemisphere Department.

Series:

IMF Working Papers; Working Paper ; No. 2009/250

IMF Working Papers

Language:

English

Subjects (All):

Capital market--Canada.

Capital market.

Securities--Canada.

Securities.

Canada--Economic policy.

Canada.

Physical Description:

28 p. : ill.

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2009.

Language Note:

English

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.

Contents:

Intro

Table of Contents

I. Introduction

II. Relationship to Related Literature

III. Methodology

A. A Quantitative Approach to the q-theory

B. Empirical Strategy

IV. Data Description

V. Results

VI. Sensitivity Analysis

A. Allowing for Different Adjustment Cost Parameters

B. Allowing for Different Depreciation Rates

C. Allowing for Different Initial Values

VII. Conclusion

References

Appendix: Data Sources and Manipulations

Tables

1. Parameter Values

2. Accounting Balance Sheet

3. Modified Accounting Framework

4. Financial Assets and Liabilities at Market Value

Figures

1. Shares and Bonds at Book and Market Value

2. Quantity and Shadow Price of the Inferred Capital Stock

3. Decomposition of the Aggregate Value of Firms (in billions of 1997 dollars)

4. Ratio of Intangible Capital Stock to the Inferred Capital Stock

5. The Part of R&amp

D in the Unrecorded Intangible Capital Stock (in billions)

6. Sensitivity to Various Adjustment Costs of the Ratio of Intangible Capital to the Inferred Capital Stock

7. Sensitivity of the Ratio of Intangible Capital to the Overall

8. Sensitivity of the Intangible Capital Stock to Various Initial Values.

Notes:

"November 2009."

Description based on print version record.

ISBN:

9786612844478

9781462345670

1462345670

9781282844476

1282844474

9781452778310

1452778310

9781451873979

1451873972

OCLC:

680614168