Measuring Capital and Technology: An Expanded Framework
- Topics:
- Investment and Capital Markets
- Tags:
- Asset Management,
- Business Operations,
- Capital Investment,
- Federal Reserve Board,
- Finance,
- Financial Accounting,
- Framework,
- Operational Planning
- Source:
- Federal Reserve Board
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Overview: Business outlays on intangible assets are usually expensed in economic and financial accounts. This paper develops an intertemporal framework for measuring capital in which consumer utility maximization governs the expenditures that are current consumption versus those that are capital investment. This framework suggests that any business outlay that is intended to increase future rather than current consumption should be treated as capital investment.
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Format: PDF | Size: 309KB | Date: Apr 2002 | Pages: 51



