Comprehensive Wealth, Intangible Capital, and Development
Existing wealth estimates show that in most countries intangible capital is the largest share of total wealth. Intangible capital is calculated as the difference between total wealth and tangible (produced and natural) capital. This paper uses new...
| Main Authors: | , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101020103459 http://hdl.handle.net/10986/3935 |
| Summary: | Existing wealth estimates show that in
most countries intangible capital is the largest share of
total wealth. Intangible capital is calculated as the
difference between total wealth and tangible (produced and
natural) capital. This paper uses new estimates of total
wealth, natural capital, and physical capital for a panel of
countries to shed light on the constituents of the
intangible capital residual. In a development-accounting
framework, the authors show that factors of production are
very successful in explaining the variation in output per
worker when they use intangible capital instead of human
capital as a factor of production. This suggests that
intangible capital captures a broad range of assets
typically included in the total factor productivity
residual. Human capital is an important factor, both in
statistical and economic terms, in regressions decomposing
intangible capital. |
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