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Supply-side estimates of UK investment
Describes how the commodity flow model can be used for such estimates and discusses advantages and disadvantages of this approach
Author: Graeme Chamberlin
Economic & Labour Market Review, vol 2, no 10, pp 52-56. ISSN: 1751-8334
The UK is unusual among member countries of the Organisation for Economic Co-operation and Development in using business surveys on investment expenditure to estimate almost all non-residential investment: a demand-side approach. More commonly, estimates of investment (or more precisely, gross fixed capital formation) are generated using available data on the supply of capital goods to the economy - a commodity flow model. This article describes how the commodity flow model can be used to form supply-side estimates of UK investment and discusses some of the advantages and disadvantages of this approach.
Published in web format: 13 October 2008 at 9:30 am
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