New Estimates of State and Local Government Tangible Capital and Net Investment

45 Pages Posted: 20 Apr 2001 Last revised: 31 May 2001

See all articles by Michael J. Boskin

Michael J. Boskin

Stanford University - The Hoover Institution on War, Revolution and Peace; National Bureau of Economic Research (NBER)

Marc Robinson

Queensland University of Technology - School of Economics and Finance; General Motors Corporation

Alan M. Huber

affiliation not provided to SSRN

Date Written: 1987

Abstract

Measures of the state and local government capital stock and investment are necessary inputs into several areas of economic analysis, including the measurement of national wealth and its growth. We estimate net investment and depreciation of state and local government nonresidential capital. In aggregate, we estimate a net state and local nonresidential capital stock of $1.8 trillion in 1985, 17% larger than that estimated by the Bureau of Economic Analysis. Net state and local government investment has exceeded the state and local deficit annually for the last forty-five years. While the fraction of state and local purchase of goods and services devoted to net investment has fallen, it has exceeded federal government net capital formation except during defense buildups and has averaged more than 40% of private fixed nonresidential net investment since 1951. Similar comparisons reveal that the state and local government net capital stock substantially exceeds state and local debt, and is about twice the federal government capital stock.

Suggested Citation

Boskin, Michael J. and Robinson, Marc and Huber, Alan M., New Estimates of State and Local Government Tangible Capital and Net Investment (1987). NBER Working Paper No. w2131. Available at SSRN: https://ssrn.com/abstract=267530

Michael J. Boskin (Contact Author)

Stanford University - The Hoover Institution on War, Revolution and Peace ( email )

Stanford, CA 94305-6010
United States
(650) 723-6482 (Phone)
(650) 723-6494 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Marc Robinson

Queensland University of Technology - School of Economics and Finance ( email )

GPO Box 2434
2 George Street
Brisbane, Queensland 4001
Australia

General Motors Corporation

100 Renaissance Center
Societal Analysis Division
Detroit, MI 48243
United States

Alan M. Huber

affiliation not provided to SSRN

No Address Available

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