Perpetual Inventory Research Articles

ESTIMATES OF CONSTRUCTION INFRASTRUCTURE STOCK FOR CAPE VERDE: 1980–2019

Building and other construction assets constitute a significant part of a country’s physical and economic infrastructure. According to several writers, the knowledge of reliable data of building and other construction assets of a specific country or region is a crucial element for the long-term management of these assets. Built capital stock statistics at the national or international levels have been available for most countries of the world, both developed and less developed ones, for some time, but construction infrastructure stock statistics at the disaggregated level are very scarce, even for most developed countries. Furthermore, the methodologies to produce the estimates of built capital stock, at the international level, do not consider countries’ specificities. This paper discusses the methodologic issues for producing construction infrastructure stock statistics for Cape Verde, and makes estimates for the period 1980–2019. The paper outlines the Perpetual Inventory Method (PIM) used to produce capital estimation, data employed, and the assumptions made to estimate missing data. The paper analyses the level of the construction infrastructure stock estimates for Cape Verde, as well as their impact on the development pattern of the country’s construction industry, and suggests how further studies can enhance our comprehension of the relationship between construction investment and economic growth and development.

Mexico and the forum for economic cooperation, Asia-pacific, 1990-2019: Determinants of the sustainable productivity of the wood industry

The purpose of this research is to identify the determinants of the productivity of the wood industry for the economies that make up the Asia-Pacific Economic Cooperation Forum (APECF) in the period 1990-2019. As a dependent variable, a sustainable productivity index is created to measure this productivity. Using the econometric method of panel data, the impact of employment, capital stock, and innovation on the sustainable productivity of the wood manufacturing industry is found. The variable capital stock (SC) is estimated using the Perpetual Inventory Method (PIM) and incorporating an adjustment factor for the absence of the first observation. The findings indicate that there is a significant relationship between the sustainable productivity index and the variables employment, innovation, and capital stock. The study's findings demonstrate that productivity exists when there is a balance in the use of resources or public goods. The contribution that is made to the literature is about authentic productivity that promotes the improvement of the quality of life of the population as well as the responsible use of finite resources. This research examines the practical implications of sustainable forest resource utilization, specifically focusing on sustainable productivity.

SISTEM INFORMASI AKUNTANSI PERSEDIAAN BAHAN BAKU BANGUNAN BERBASIS WEB

PT. Bintang Mataram Sejahtera Semarang is a company engaged in the field of housing construction contractors. In carrying out its business, the company has a project warehouse near the project that is being worked on for storage of materials while working on the project, the project warehouse is located to move according to the project being worked on. The problem faced is that the recording of material inventory is still done manually using the goods control stock card then after it is recorded it is entered into Microsoft Excel, this causes a long time for recording material data stocks because you have to open the parts one by one or sheet per sheet beforehand to make reports. and can hinder reporting to company leaders.This study aims to produce a system that can speed up the process of recording inventory of building material stock in the construction project warehouse, and can generate various material inventory reports that can control the availability of material inventory in the project warehouse. The method used is the Perpetual Inventory System, namely material management is carried out by controlling the stock of material inventory directly per period continuously updating the stock every time material comes in and material goes out. A web-based building material inventory information system with the PHP programming language and supported by MySQL database storage is urgently needed to assist administration, foremen and project leaders to speed up various material inventory control reports that are fast, accurate and thorough and can improve officer performance in presenting report.

Standardized capital stock estimates for the Greek economy 1948–2020

In this study we present new estimates of the capital stock of the Greek economy for the period 1948 to 2020 using the Perpetual Inventory Method (PIM). Asset detail is at the fourth digit level for construction and equipment and at the third digit level for all other assets. Our estimates are derived using the OECD methodology from National Accounts data on gross fixed capital formation coupled with a number of official and semi-official publications. The results are subjected to a sensitivity analysis by varying estimates of a number of critical magnitudes. Our results indicate the significance of measurement and estimation issues, especially the choice of survival functions and age-efficiency profiles, for the implementation of the PIM approach and therefore for the estimation of key macroeconomic variables such as the capital–output ratio.

The Influence of Capital Deepening on Regional Economic Development Gap: The Intermediary Effect of the Labor Income Share

At the same time as economic development, the imbalance problem in regional economic development is prominent, which hinders sustainable economic development, especially in China. Explaining the causes of unbalanced regional economic development is an important scientific problem in current economic research. Here, this study takes China as the empirical research area and uses China’s inter-provincial panel data to deeply analyze the impact of capital deepening on the regional economic development gap. As indicated by this study, after a series of potential factors (e.g., industrial proportion, foreign direct investment, and per capita GDP) of the regional development gap are controlled, the capital deepening measured using perpetual inventory can have a strong explanatory power for the regional development gap, i.e., the greater the value of capital deepening, the more significant the regional development gap will be. According to the above conclusion, the effect arising from capital deepening on the regional development gap is still significant, even after the Soviet Aid Project is employed as the current instrumental variable of capital deepening, as well as after the data from the world sample are estimated The study further finds that capital deepening does not directly affect the regional development gap but indirectly affects the regional development gap by affecting the labor income share. Therefore, a higher labor share can narrow the regional development gap.

The growth impact of infrastructure capital investment: the role of regional innovation capacity—evidence from China

To verify the impact mechanism between infrastructure capital investment and regional economic growth in China, this study first estimates production capital stocks of the infrastructure by Perpetual Inventory Method (PIM) based on a balanced panel dataset for 31 Chinese provinces, autonomous regions and municipalities covering 1993–2017, then analyses the important mediating role of regional innovation capacity in the relationship between infrastructure capital investment and regional economic growth in China. The empirical results indicate that infrastructure capital investment can effectively promote economic growth in China. Furthermore, through analysing the mediating impact mechanism, the infrastructure capital investment can indirectly affect regional economic growth through the regional innovation capacity. When fully considering the potential heterogeneity, the mediating effect of developed regions is more significant than that of underdeveloped regions, and such a mediating effect is increasing with deepening industrialization. Therefore, a harmonious relationship between infrastructure capital investment and economic growth can be achieved if policymakers attempt to arouse the positive mediating role of regional innovation capacity when formulating relevant policies.

Даврий ва узлуксиз захиралар тизимларига оид масалалар

This article explores the issues of essence, various aspects and application of the periodic and perpetual Inventory Systems. Proposed accounts are designed to account for the cost of purchases and harvesting-storage of inventory, as well as its constituent elements. Improved methodological issues of determining the cost of inventories released into production, the cost of finished products received from production, the cost of finished products sold.

Depreciation Rate by Industrial Sector and Profit after Tax in China

This study examines how asset values by industry sectors are affected by different depreciation methods. We theoretically show that estimating depreciation rate by the Perpetual Inventory Method (PIM) contains more information than the method by Depreciation Expense as Accounting Item (DEAI), which are equivalent under certain conditions. Using data of 37 industrial sectors in China from 2001 to 2016, we estimate depreciation rates by sectors using both PIM and DEAI methods, which enable us to estimate capital stock and capital efficiency by sectors. By the panel estimation, depreciation rates estimated by both PIM and DEAI methods significantly increase with the enterprise's profits after tax defined by that profits before tax minus tax. Our result is consistent with the prediction of the economic depreciation hypothesis, implying that tax shield of depreciation that raises corporate after-tax cash flows to the firm could improve corporate investments for replacement by scrapping the old equipment.

Sistem Penerapan Metode Pencatatan Dan Penilaian Persediaan Barang Dagang Di Togamas

The purpose of this study was to determine how the system of applying the method of recording and valuing merchandise inventory in TOGAMAS Toko Buku Diskon Singaraja. This research was a quantitative research. The data collection technique used was documentation. Data analysis techniques used in this study were two methods, namely the inventory assessment method consisting of the FIFO method, the LIFO method, and the Average method. The recording method was also divided into two, namely the Periodic Inventory System and the Perpetual Inventory System. All that had been examined in this study showed significant results related. For this reason, it is expected that Togamas Toko Buku Diskon Singaraja should always apply the system of recording and valuing merchandise inventory that has been carried out so far.

REGIONAL DISPARITIES IN LABOUR PRODUCTIVITY AND THE ROLE OF CAPITAL STOCK

This paper reports on the availability of regional capital stock data,1 in the form of new/updated regional (NUTS2 level) capital stock estimates,2 building on an approach (Perpetual Inventory Method) which had been previously developed for the European Commission. The particular focus here is on the UK and how these data are used to shed light on regional labour productivity disparities. Using a NUTS2 level dataset constructed for the period 2000–16, we use a dynamic spatial panel approach from Baltagi et al. (2019) to estimate a model relating productivity to output (growth or levels) and augmented by explicit incorporation of capital stock plus various other covariates such as human capital. We find that regional variations in capital stocks per worker make a significant contribution to regional variations in labour productivity, but the geography of human capital is also highly relevant. Moreover, we give evidence to show that as human capital rises, notably as we move from the regions to London, the impact of capital stock per worker is less. The effect of capital stock depends on the level of human capital.

Infrastructure Investment with Public-Private Partnership (PPP) and Economic Growth in Developing Countries in Asia

Infrastructure is an important factor of economic growth in developing countries, and economic growth is constrained by the inadequacy of infrastructure, as financing is expensive. The advantage of Public-Private Partnership (PPP) in infrastructure is well recognized, allowing financing for expensive infrastructure investments. This study examines the importance of PPP for infrastructure to economic growth in nine developing countries in Asia. The estimated period is from 1990 to 2015 using panel data with fixed effect. The dependent variable is GDP, and independent variables are PPP infrastructure stock, non-PPP infrastructure stock, labor force and literacy rate as a proxy variable of quality of labor. This study estimates PPP infrastructure stock using the Perpetual Inventory Method and controls for the external effect of the Asian Economic Crisis in 1998.This study finds positive effects of PPP infrastructure stock on economic growth. PPP infrastructure stock is an addition to the existing infrastructure stock. The result of this study encourages more PPP investment in developing countries in Asia for economic growth.KeywordsEconomic Growth, Developing Countries, Infrastructure Stock and Public-Private Partnership in Infrastructure

Influence of store characteristics on product availability in retail business

Stock-out event in retail business represents a situation in which demanded item cannot be found by customer in the expected location or is not in a saleable condition. Frequent stock-outs remain one of the biggest issues in the retail business because they directly contribute to lost sales and reduced profits, and indirectly contribute to reduced loyalty and potential loss of customers. Although the stock-outs can occur anywhere in the entire supply chain, literature confirmed that the most of most of stock-outs occur at the store level. A number of researchers have tried to reveal the product and store related drivers and the factors that contribute to lower product availability. Identification of stock-outs was usually performed using the point-of-sale (POS) estimation method or manual audit method, so the results and conclusions were mostly based on a small number stores and products, and they were observed in a shorter period of time. In this research, probit regression was used to examine the relationship between various store-related drivers and product availability. The data sample included 115 SKUs and 98 stores and the data was provided by a large grocery retailer in Serbia. To identify stock-outs on a large data sample, a perpetual inventory (PI) aggregation method was selected. The store related variables that were determined to be the drivers of stock out performance include distance from distribution center, average store sale and stock-keeping unit density as the most the most prominent driver. Especially high probability of stock-out can be expected when stock-keeping-unit density and average store sale are high at the same time. On the other hand, it was observed that the income level of the population living in the store area does not have a significant influence on stock-out performance at store level.

Retail Out-of-stocks in the Context of Centralized and Direct Delivery

The delivery of the right product, at the right time to the retail store, only seems to be an easy process. The smallest problem can cause the out-of-stock (OOS) situation, which may prevent customers to buy products they were looking for. Consequently, it affects retailers and their suppliers through potential operational inefficiencies, sale losses and eventually the losses of their loyal customers. Starting from these problems, by using the data of a large Serbian retailer, this paper analyses out-of-stocks in the context of two alternative delivery systems, centralized and direct. For calculating OOS rates the perpetual inventory aggregation metrics was used, while the occurrence of out-of-stocks was modelled by the application of probit regression analysis. The results have shown that delivery system has a significant impact on the probability of a stock-out, indicating potential problems in the centralized system. In addition, the analysis included certain product and store characteristics that also significantly affect the average probability of stock-outs.

Dynamic Estimation on Output Elasticity of Highway Capital Stock in China

By using the Perpetual Inventory Method to calculate the capital stock of highway in China from 1988 to 2016, the paper builds the State Space Model based on Translog Production Function, according to the Ridge Regression and Kalman Filter Method, the dynamic estimation results of output elasticity are measured continuously and analyzed. The conclusions show that: Firstly, China’s growth speed on highway industry capital stock are divided into three stages which are respectively from 1988 to 2000, from 2001 to 2009 and from 2010 to 2016, during which shows steady growth, between which reflect rapid growth; Secondly, the output elasticity of highway capital stock, being between 0.154 and 0.248, is slightly larger than the output elasticity of human input factor, lower than the output elasticity of the technical level, shows positive effect on transport economy and rises steadily, but the output efficiency is low on the whole; Thirdly, around the year of 2010, the scale pay on highway industry begins to highlight the characteristic of increase.

Aggregate Capital Stock Estimations for 122 Countries: An Update

Abstract Using newly available investment data from the World Bank’s World Development Indicators database we provide an update and an extension of the aggregate capital stock estimations provided in (Berlemann, M. and J.-E. Wesselhöft (2014): Estimating Aggregate Capital Stocks Using the Perpetual Inventory Method: A Survey of Previous Implementations and New Empirical Evidence for 103 Countries, Review of Economics 65(1), 1–34). The new database contains comparable unbalanced panel data for 122 countries and the period of 1960 to 2016.

Estimación del Stock de capital público en México a nivel estatal: 1990-2015

In the present paper an exercise of estimation of the stock of public capital in Mexico was conducted. For this purpose, the OECD-recommended perpetual inventories model was used, adding the adjustment factor of Almon (1999), also described in Shiau et al. (2002) and Loría and de Jesús (2007). Public investment data at the state level for the period 1990 to 2015 by the Federative Entity (32) were used and a depreciation rate of 9.07%.The result is a series of data consistent with economic fluctuations, as the trend of real investment follows. It also solves the estimation problem inherent in the perpetual inventory method.

Cost Structure and Economies of Scale in German Water Supply

Potable water supply in Germany is highly fragmented. A consolidation of the industry could, therefore, lead to lower cost of water supply and price savings for the customers. In this paper we estimate a total cost function for potable water supply based on a unique sample of German water utilities observed between 2004 and 2010. Newly available data allows for a detailed cost modeling approach. Capital stocks are estimated using the Perpetual Inventory Method, while capital costs are estimated using a weighted cost of capital approach. Local water suppliers are found to have strong cost advantages compared to regional suppliers. While the results indicate strong density effects, economies of scale are only found for the smallest water utilities. Thus, the results argue against a consolidation of the industry.

Measuring the impact of stock-keeping unit attributes on retail stock-out performance

Stock-outs are one of a retail chains’ biggest problems because they lead directly to lost sales, reduced profits, and the potential loss of customers. This research applied probit regression to determine the relationship between various stock-keeping unit (SKU) attributes and retail stock-out performance. The data sample came from a large grocery retailer in Serbia and included two high-risk product categories consisting of a total of 115 SKUs and 98 stores. For the identification of stock-outs, a perpetual inventory aggregation method was used. Regardless of the category observed, the variables that were identified as having a detrimental impact on stock-out performance include stock-out at the distribution center, promotion, and high sales speed. On the other hand, a beneficial effect in terms of a reduced number of stock-outs was observed when the ordering process was performed using an automated ordering system.

Assembly FG: An Education Case Study Using QuickBooks as the AIS for a Small Manufacturing Business

ABSTRACT This education case is the first to use QuickBooks Premier Accountant to teach students foundation functionalities common to all Enterprise Resource Planning (ERP) systems that support discrete manufacturing. Students learn how to configure QuickBooks so that direct materials, direct labor and applied manufacturing overhead costs charged to work-in-process parts manufactured at lower levels of the BOM are rolled up into the costs of higher-level work-in-process parts and, ultimately, into the costs of the finished goods parts. Students set up raw materials, work-in-process and finished goods part numbers so that quantities and costs of parts on-hand are tracked in inventory on the Perpetual Inventory System to provide an inventory subsidiary ledger that continuously matches the manufacturing inventory account balances in the Chart of Accounts. Students learn the importance of configuring Off the Shelf (OTS) manufacturing systems in accurately costing manufactured discrete products, including setting up manufacturing accounts, employees, part numbers, and the BOM. As such, the case is designed to be used in Accounting Information Systems (AIS) courses that are already using QuickBooks to help students' better understand the general concepts covered in AIS textbooks on the Production Cycle that are not addressed in extant textbooks on QuickBooks.

A Short-Cut Method of Estimating Capital Stocks: When Can It be Used and How Well Does It Work?

type=main> Relatively few countries currently publish estimates of capital stocks because of the difficulty of applying the Perpetual Inventory Method. A short-cut method which we term the Steady Growth Model (SGM) can produce plausible capital stock estimates provided certain conditions are met. Starting with a database covering 146 countries we conclude that the SGM can legitimately be used to calculate capital stocks for 53 of them. The 53 include equal numbers of high-income and low-income countries. The SGM requires only data on gross fixed capital formation for the base year, information about past growth rates of real GFCF, and assumptions about rates of depreciation. Despite its apparent simplicity, we show that our SGM stock estimates compare well with official stock estimates generated by the PIM. Other tests on capital–output ratios and capital-stocks per head confirm the plausibility of stock estimates generated by SGM.