We tested the sensitivity of the value of the contribution of capital to household production to: - using a geometric Perpetual Inventory Model - this reduced capital consumption of all assets except dwellings by less than 1 per cent in 2000;
- using a capital services model, which estimates capital consumption and foregone interest - if a 2.5 per cent discount rate is assumed, this increases the value of the contribution of capital by 17 per cent, if a 6 per cent discount rate is assumed, it increases the value of the contribution of capital by 47 per cent in 2000.
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