National Accounts Division, Central Statistical Organisation.
In this paper an attempt has been made to generate estimates of capital stock and depreciation for the manufacturing industry based on retirement functions. In doing so, the estimates of the growth in capital stock, capital wealth and depreciation have been compared with the estimates published in the National Accounts Statistics (NAS)-2008. In the first instance, estimates of retirements using a discard function for assets have been worked out. This is then used to estimate the gross fixed capital stock. Then a depreciation model is used to produce estimates of economic depreciation and wealth stock. Aim of this paper is to show that assuming a mortality function and taking into account of the retirements of a cohort of assets would reduce the values of consumption of fixed capital presently used in the NAS, thereby impacting the GDP/NDP.
