A Benchmark Estimate for the Capital Stock An Optimal Consistency Method

Abstract

There are alternative methods to estimate a capital stock for a benchmark year. These methods, however, do not allow for an independent check, which could establish whether the estimated benchmark level is too high or too low. I propose here an optimal consistency method (OCM), which may allow estimating a capital stock level for a benchmark year and/or checking the consistency of alternative estimates of a benchmark capital stock. Key words: Benchmark Capital, Perpetual Inventory Method (PIM), Optimal Consistency Method (OCM).