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Fixed reproducible tangible wealth in the United States, revised estimates.

THIS ARTICLE presents revised estimates of fixed reproducible tangible wealth in the United States for 1925-90. These estimates, which over the stock of privately owned and government-owned durable equipment and structures and of durable goods owned by consumers, are shown in table 1-20. Estimates of fixed private capital for 1947-90 are shown in tables 1-4; fixed nonresidential private capital for 1925-90, in tables 5-8; residential capital for 1925-90, in tables 9-12; government-owned fixed capital for 1925-90, in tables 13-16; and durable goods owned by consumers for 1925-90, in tables 17-20. Summary estimates fixed reporducible tangible wealth for 1925-90 are presented beginning on page 136 of this issue; for information about the availability of more detailed estimates, see the box below.

The revisions in the fixed reproducible tangible wealth estimates largely stem from the recent comprehensive revision of the national income and product accounts (NIPA's). In the comprehensive revision, three changes that were incorporated into the NIPA estimates of gross private domestic investment, government purchases of structures and equipment, and personal consumption expenditures for durable goods led to substantial revisions in the wealth estimates. (1) First, the introduction of a new procedure for estimating construction resulted in substantial upward revisions, beginning in 1970, of the estimates of private purchases and State and local government pruchases of nonresidential structures. Second, the base period used to calculate the constant-dollar estimates was shifted from 1982 to 1987. Third, monetary interest paid by utility companies on own-account construction projects is now included in the investment estimates for the telephone and telegraph communications industry and for the electric and gas services industries.

In addition, as part of the comprehensive NIPA revision, the industry distributions of gross domestic product, national income, and their components were shifted, beginning with the

[TABULAR DATA OMITTED]

estimates for 1987, from the 1972 Standard Industrial Classification (SIC) to the 1987 SIC. (2) The industrial classification of the investment series used to derive the wealth estimates in tables 1-4 is now based on the 1987 SIC for all years; previously published estimates were based on the 1972 SIC. This shift results in substantial upward revisions in the following industries: Instruments and related products; rubber and miscellaneous plastics products; radio and television communications; depository institutions; motion pictures; and other services. It also results in substantial downward revisions in the following industries: Stone, clay, and glass products; electronic and other electric equipment; telephone and telegraph communications; non-depository institutions; personal services; and business services. (3)

In addition to the incorporation of revised NIPA estimates and the shift to the 1987 SIC, three other changes affected the wealth estimates. First, revised service lives for several types of assets were used to derive the revised wealth estimates as well as the revised NIPA estimates of consumption of fixed capital. (Table A shows the revised and previously published service lives for these assets.) Second, the revised estimates of fixed private capital by industry incorporate new information on the industry distribution of investment. The new distribution is derived primarily from the 1987 Economic Censuses and the Census Bureau's plant and equipment expenditures series. Third, new BEA information on purchases of military durable goods provides a more accurate breakdown between purchases of complete equipment and purchases of other types of durable goods, such as parts; this information resulted in upward revisions in the expenditure estimates for military equipment from the mid-1940's to the mid-1970's and downward revisions thereafter.

Table 1 through 20 follow.

(1) The revised NIPA estimates are described in "The Comprehensive Revision of the U.S. National Income and Product Accounts: A Review of Revisions and Major Statistical Changes," SURVEY OF CURRENT BUSINESS 71 (December 1991): 24-42.

(2) See Robert P. Parker, "A Preview of the Comprehensive Revision of the National Income and Product Accounts: New and Redesigned Tables," SURVEY 71 (October 1991): 20-28.

(3) For a detailed presentation of the 1987 SIC revisions, see Standard Industrial Classification Manual, 1987, Executive Office of the President, Office of Management and Budget (Washington, DC: U.S. Government Printing Office 1988).
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Title Annotation:for the years 1925-90
Author:Musgrave, John C.
Publication:Survey of Current Business
Date:Jan 1, 1992
Words:669
Previous Article:The business situation.
Next Article:Personal income by region and state, third quarter 1991.
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