The capital stick indicates the fixed assets of a national economy. It plays a substantial role beside the employed persons as factor of production. The capital stick is called also factor of production capital.

The capital stick or the fixed assets covers all produced fortune goods, which are repeated longer than one year or used durably in production according to the definition of the statistic federal office.

The capital stick is determined by the Kumulationsmethode. One goes out from the capital stick of a certain start time and adds the asset investments taking place thereafter and subtracts the writings-off. So one can update the capital stick in the course of the time. The problem is the capital stick of the start time, which does not admit generally is. Here one must make do with estimations. In the course of the time the size of the initial capital stick has however no more influence on the current size of the capital stick. The possible at the beginning weakens itself in its effect in the course of the time ever more. This "“forgetting"” (see ergodic theorem) the initial value depends on it, which life span for individual tangible assets is set, the shorter life span, the more rapidly one can "“forget"” the initial value of the capital stick.

Theory

Whether the "“capital"” to a linear size to add leaves itself (Elektrolokomitiven are added to drawing pins) is theoretically disputed and to the subject of the so-called capital controversy.

See also:

constant capital

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A definition and explanations of the Federal Statistical Office are: Revision of the 1991 to 2001

Articles in category "Capital stick"

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