Download or read book A Theory of Measuring Fixed Capital Flows and Stocks written by J. C. Hwang and published by . This book was released on 1996 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a theoretical perpetual inventory model for measuring both the quantity and price sides of fixed capital flows and stocks. Because conventional models only measure the quantity side of fixed capital flows and stocks, it is difficult to fit the economic depreciation variable into the models. This paper provides a clear picture of how physical depreciation and economic depreciation are applied to the quantity side and price side of the model. The new model presented in this paper also generalizes the conventional model. In any case, the conventional model which used the deflator of the gross fixed capital formation as the deflator of all fixed capital flows and stocks is questionable.