Human Capital, Tangible Wealth, and the Intangible Capital Residual
Since income is the return on wealth, the total wealth of any given country should be on the order of 20 times its gross domestic product. Instead the average observed ratio from the balance sheet accounts of the System of National Accounts is a factor of 2.6 to 6.6, depending on whether natural resource stocks are included in the balance sheet. The clear implication is that the System of National Accounts wealth accounts are incomplete, with the most obvious omission being human capital. Estimating the value of human capital using the lifetime income approach for a sample of 13 (mostly high-income) countries yields a mean share of human capital in total wealth of 62 percent -- four times the value of produced capital and 15 times the value of natural capital. But for selected high-income countries in the sample there is still an average of 25 percent of total wealth that is unaccounted -- it is neither produced, nor natural, nor human capital. This residual intangible wealth is arguably the "stock equivalent" of total factor productivity -- the value of assets such as institutional quality and social capital that augment the capacity of produced, natural and human capital to support a stream of consumption into the future.
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dig-okr-10986131762021-04-23T14:03:07Z Human Capital, Tangible Wealth, and the Intangible Capital Residual Hamilton, Kirk Liu, Gang ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING PERIOD AFFILIATED ORGANIZATIONS ASSET VALUES ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSET CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS COMPARATIVE ANALYSIS CONSTANT RETURNS TO SCALE CURRENCY DEFLATORS DEMOGRAPHIC DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DOLLAR PRICES ECONOMIC RESEARCH ECONOMIC SURVEYS ECONOMIC THEORY ECONOMIC VALUE ECONOMICS LITERATURE ECONOMICS OF EDUCATION ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXCHANGE RATES EXPECTED VALUE FIXED ASSETS FOREIGN ASSETS FUTURE EARNINGS FUTURE GROWTH GDP GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOLDING HOMOGENEOUS GOOD HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROUPS INCOME GROWTH INCOME MEASURES INCOMES INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTERNATIONAL BANK INVENTORY INVESTING LABOR MARKET MARGINAL PRODUCT MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION NATIONAL INCOME NATURAL CAPITAL NATURAL RESOURCE NATURAL RESOURCES NET FOREIGN ASSETS PER CAPITA INCOME POSITIVE EXTERNALITIES POTENTIAL OUTPUT POWER PARITIES PRESENT VALUE PRIVATE RETURNS PRODUCTION FUNCTION PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP REAL GROWTH RATE REAL INCOME RETIREMENT RETURN RETURN ON ASSETS RETURNS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL VALUE STOCKS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH VALUE OF ASSETS WAGES WEALTH Since income is the return on wealth, the total wealth of any given country should be on the order of 20 times its gross domestic product. Instead the average observed ratio from the balance sheet accounts of the System of National Accounts is a factor of 2.6 to 6.6, depending on whether natural resource stocks are included in the balance sheet. The clear implication is that the System of National Accounts wealth accounts are incomplete, with the most obvious omission being human capital. Estimating the value of human capital using the lifetime income approach for a sample of 13 (mostly high-income) countries yields a mean share of human capital in total wealth of 62 percent -- four times the value of produced capital and 15 times the value of natural capital. But for selected high-income countries in the sample there is still an average of 25 percent of total wealth that is unaccounted -- it is neither produced, nor natural, nor human capital. This residual intangible wealth is arguably the "stock equivalent" of total factor productivity -- the value of assets such as institutional quality and social capital that augment the capacity of produced, natural and human capital to support a stream of consumption into the future. 2013-04-11T20:56:57Z 2013-04-11T20:56:57Z 2013-03 http://documents.worldbank.org/curated/en/2013/03/17488083/human-capital-tangible-wealth-intangible-capital-residual http://hdl.handle.net/10986/13176 English en_US Policy Research Working Paper;No. 6391 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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dig-okr |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING PERIOD AFFILIATED ORGANIZATIONS ASSET VALUES ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSET CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS COMPARATIVE ANALYSIS CONSTANT RETURNS TO SCALE CURRENCY DEFLATORS DEMOGRAPHIC DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DOLLAR PRICES ECONOMIC RESEARCH ECONOMIC SURVEYS ECONOMIC THEORY ECONOMIC VALUE ECONOMICS LITERATURE ECONOMICS OF EDUCATION ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXCHANGE RATES EXPECTED VALUE FIXED ASSETS FOREIGN ASSETS FUTURE EARNINGS FUTURE GROWTH GDP GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOLDING HOMOGENEOUS GOOD HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROUPS INCOME GROWTH INCOME MEASURES INCOMES INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTERNATIONAL BANK INVENTORY INVESTING LABOR MARKET MARGINAL PRODUCT MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION NATIONAL INCOME NATURAL CAPITAL NATURAL RESOURCE NATURAL RESOURCES NET FOREIGN ASSETS PER CAPITA INCOME POSITIVE EXTERNALITIES POTENTIAL OUTPUT POWER PARITIES PRESENT VALUE PRIVATE RETURNS PRODUCTION FUNCTION PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP REAL GROWTH RATE REAL INCOME RETIREMENT RETURN RETURN ON ASSETS RETURNS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL VALUE STOCKS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH VALUE OF ASSETS WAGES WEALTH ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING PERIOD AFFILIATED ORGANIZATIONS ASSET VALUES ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSET CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS COMPARATIVE ANALYSIS CONSTANT RETURNS TO SCALE CURRENCY DEFLATORS DEMOGRAPHIC DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DOLLAR PRICES ECONOMIC RESEARCH ECONOMIC SURVEYS ECONOMIC THEORY ECONOMIC VALUE ECONOMICS LITERATURE ECONOMICS OF EDUCATION ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXCHANGE RATES EXPECTED VALUE FIXED ASSETS FOREIGN ASSETS FUTURE EARNINGS FUTURE GROWTH GDP GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOLDING HOMOGENEOUS GOOD HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROUPS INCOME GROWTH INCOME MEASURES INCOMES INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTERNATIONAL BANK INVENTORY INVESTING LABOR MARKET MARGINAL PRODUCT MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION NATIONAL INCOME NATURAL CAPITAL NATURAL RESOURCE NATURAL RESOURCES NET FOREIGN ASSETS PER CAPITA INCOME POSITIVE EXTERNALITIES POTENTIAL OUTPUT POWER PARITIES PRESENT VALUE PRIVATE RETURNS PRODUCTION FUNCTION PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP REAL GROWTH RATE REAL INCOME RETIREMENT RETURN RETURN ON ASSETS RETURNS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL VALUE STOCKS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH VALUE OF ASSETS WAGES WEALTH |
| spellingShingle |
ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING PERIOD AFFILIATED ORGANIZATIONS ASSET VALUES ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSET CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS COMPARATIVE ANALYSIS CONSTANT RETURNS TO SCALE CURRENCY DEFLATORS DEMOGRAPHIC DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DOLLAR PRICES ECONOMIC RESEARCH ECONOMIC SURVEYS ECONOMIC THEORY ECONOMIC VALUE ECONOMICS LITERATURE ECONOMICS OF EDUCATION ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXCHANGE RATES EXPECTED VALUE FIXED ASSETS FOREIGN ASSETS FUTURE EARNINGS FUTURE GROWTH GDP GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOLDING HOMOGENEOUS GOOD HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROUPS INCOME GROWTH INCOME MEASURES INCOMES INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTERNATIONAL BANK INVENTORY INVESTING LABOR MARKET MARGINAL PRODUCT MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION NATIONAL INCOME NATURAL CAPITAL NATURAL RESOURCE NATURAL RESOURCES NET FOREIGN ASSETS PER CAPITA INCOME POSITIVE EXTERNALITIES POTENTIAL OUTPUT POWER PARITIES PRESENT VALUE PRIVATE RETURNS PRODUCTION FUNCTION PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP REAL GROWTH RATE REAL INCOME RETIREMENT RETURN RETURN ON ASSETS RETURNS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL VALUE STOCKS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH VALUE OF ASSETS WAGES WEALTH ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING PERIOD AFFILIATED ORGANIZATIONS ASSET VALUES ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSET CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS COMPARATIVE ANALYSIS CONSTANT RETURNS TO SCALE CURRENCY DEFLATORS DEMOGRAPHIC DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DOLLAR PRICES ECONOMIC RESEARCH ECONOMIC SURVEYS ECONOMIC THEORY ECONOMIC VALUE ECONOMICS LITERATURE ECONOMICS OF EDUCATION ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXCHANGE RATES EXPECTED VALUE FIXED ASSETS FOREIGN ASSETS FUTURE EARNINGS FUTURE GROWTH GDP GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOLDING HOMOGENEOUS GOOD HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROUPS INCOME GROWTH INCOME MEASURES INCOMES INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTERNATIONAL BANK INVENTORY INVESTING LABOR MARKET MARGINAL PRODUCT MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION NATIONAL INCOME NATURAL CAPITAL NATURAL RESOURCE NATURAL RESOURCES NET FOREIGN ASSETS PER CAPITA INCOME POSITIVE EXTERNALITIES POTENTIAL OUTPUT POWER PARITIES PRESENT VALUE PRIVATE RETURNS PRODUCTION FUNCTION PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP REAL GROWTH RATE REAL INCOME RETIREMENT RETURN RETURN ON ASSETS RETURNS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL VALUE STOCKS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH VALUE OF ASSETS WAGES WEALTH Hamilton, Kirk Liu, Gang Human Capital, Tangible Wealth, and the Intangible Capital Residual |
| description |
Since income is the return on wealth,
the total wealth of any given country should be on the order
of 20 times its gross domestic product. Instead the average
observed ratio from the balance sheet accounts of the System
of National Accounts is a factor of 2.6 to 6.6, depending on
whether natural resource stocks are included in the balance
sheet. The clear implication is that the System of National
Accounts wealth accounts are incomplete, with the most
obvious omission being human capital. Estimating the value
of human capital using the lifetime income approach for a
sample of 13 (mostly high-income) countries yields a mean
share of human capital in total wealth of 62 percent -- four
times the value of produced capital and 15 times the value
of natural capital. But for selected high-income countries
in the sample there is still an average of 25 percent of
total wealth that is unaccounted -- it is neither produced,
nor natural, nor human capital. This residual intangible
wealth is arguably the "stock equivalent" of
total factor productivity -- the value of assets such as
institutional quality and social capital that augment the
capacity of produced, natural and human capital to support a
stream of consumption into the future. |
| format |
Publications & Research :: Policy Research Working Paper |
| topic_facet |
ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING PERIOD AFFILIATED ORGANIZATIONS ASSET VALUES ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSET CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS COMPARATIVE ANALYSIS CONSTANT RETURNS TO SCALE CURRENCY DEFLATORS DEMOGRAPHIC DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DOLLAR PRICES ECONOMIC RESEARCH ECONOMIC SURVEYS ECONOMIC THEORY ECONOMIC VALUE ECONOMICS LITERATURE ECONOMICS OF EDUCATION ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXCHANGE RATES EXPECTED VALUE FIXED ASSETS FOREIGN ASSETS FUTURE EARNINGS FUTURE GROWTH GDP GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOLDING HOMOGENEOUS GOOD HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROUPS INCOME GROWTH INCOME MEASURES INCOMES INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTERNATIONAL BANK INVENTORY INVESTING LABOR MARKET MARGINAL PRODUCT MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION NATIONAL INCOME NATURAL CAPITAL NATURAL RESOURCE NATURAL RESOURCES NET FOREIGN ASSETS PER CAPITA INCOME POSITIVE EXTERNALITIES POTENTIAL OUTPUT POWER PARITIES PRESENT VALUE PRIVATE RETURNS PRODUCTION FUNCTION PURCHASING POWER RATE OF RETURN RATES OF RETURN REAL GDP REAL GROWTH RATE REAL INCOME RETIREMENT RETURN RETURN ON ASSETS RETURNS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL VALUE STOCKS SUSTAINABLE DEVELOPMENT TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH VALUE OF ASSETS WAGES WEALTH |
| author |
Hamilton, Kirk Liu, Gang |
| author_facet |
Hamilton, Kirk Liu, Gang |
| author_sort |
Hamilton, Kirk |
| title |
Human Capital, Tangible Wealth, and the Intangible Capital Residual |
| title_short |
Human Capital, Tangible Wealth, and the Intangible Capital Residual |
| title_full |
Human Capital, Tangible Wealth, and the Intangible Capital Residual |
| title_fullStr |
Human Capital, Tangible Wealth, and the Intangible Capital Residual |
| title_full_unstemmed |
Human Capital, Tangible Wealth, and the Intangible Capital Residual |
| title_sort |
human capital, tangible wealth, and the intangible capital residual |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013-03 |
| url |
http://documents.worldbank.org/curated/en/2013/03/17488083/human-capital-tangible-wealth-intangible-capital-residual http://hdl.handle.net/10986/13176 |
| work_keys_str_mv |
AT hamiltonkirk humancapitaltangiblewealthandtheintangiblecapitalresidual AT liugang humancapitaltangiblewealthandtheintangiblecapitalresidual |
| _version_ |
1756572716622675968 |