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Measure of capital stock using perpetual inventory method

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Reference no: EM132649377

Why can we not simply add up the value of fixed assets on the balance sheets of all the firms in an industry to obtain a meaningful measure of the industry's capital stock?

Why does it matter how far back our data on investment go in time, when deriving a measure of capital stock using the perpetual inventory method?

Reference no: EM132649377

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