The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities

30 Pages Posted: 20 Oct 2009

Multiple version iconThere are 2 versions of this paper

Date Written: September 8, 2008

Abstract

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, the R&D reported by national accounts makes up only 23%. These results imply that official Canadian statistics failed to account for 26% of the value of the capital stock in their 2005 quarterly data collection. In addition, I find that the magnitude of the intangible capital stock is comparable to that reported using a cost approach, confirming the size of the findings and ascertaining the need to include intangibles in empirical models and in investment data.

Keywords: q-Theory, Unrecorded Capital, Intangible Capital

JEL Classification: E22, E44, G12, G31, O16

Suggested Citation

Belhocine, Nazim, The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities (September 8, 2008). Available at SSRN: https://ssrn.com/abstract=1490661 or http://dx.doi.org/10.2139/ssrn.1490661

Nazim Belhocine (Contact Author)

International Monetary Fund ( email )

700 19th Street NW
Washington, DC 20431
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
28
Abstract Views
392
PlumX Metrics