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  • Articles and reports: 11-633-X2018018
    Description:

    This paper describes the data sources and methods used to backcast provincial and territorial income-based gross domestic product (GDP), expenditure-based GDP, real gross domestic income, unemployment rates, depreciation rates and urbanization rates. Nevertheless, estimates can be produced that are very close and which are useful for understanding the evolution of the provincial and territorial economies. Instrumental variable techniques are used to estimate the historical movements of these economic variables back to 1950.

    Release date: 2018-11-02

  • Journals and periodicals: 11F0027M
    Geography: Canada
    Description:

    The Economic Analysis Research Paper Series provides the circulation of research conducted by the staff of National Accounts and Analytical Studies, visiting fellows and academic associates. The research paper series is meant to stimulate discussion on a range of topics including the impact of the new economy; productivity issues; firm profitability; technology usage; the effect of financing on firm growth; depreciation functions; the use of satellite accounts; savings rates; leasing; firm dynamics; hedonic estimations; diversification patterns; investment patterns; the differences in the performance of small and large, or domestic and multinational firms; and purchasing power parity estimates. Readers of the series are encouraged to contact the authors with comments, criticisms and suggestions.

    The primary distribution medium for the papers is the Internet. These papers can be downloaded from the Internet at www.statcan.gc.ca for free. Papers in the series are distributed to Statistics Canada Regional Offices and provincial statistical focal points.

    All papers in the Economic Analysis Series go through institutional and peer review to ensure that they conform to Statistics Canada's mandate as a government statistical agency and adhere to generally accepted standards of good professional practice.

    The papers in the series often include results derived from multivariate analysis or other statistical techniques. It should be recognized that the results of these analyses are subject to uncertainty in the reported estimates.

    The level of uncertainty will depend on several factors: the nature of the functional form used in the multivariate analysis; the type of econometric technique employed; the appropriateness of the statistical assumptions embedded in the model or technique; the comprehensiveness of the variables included in the analysis; and the accuracy of the data that are utilized. The peer group review process is meant to ensure that the papers in the series have followed accepted standards to minimize problems in each of these areas.

    Release date: 2015-07-24

  • Articles and reports: 15-206-X2015039
    Description:

    This paper generates updated estimates of depreciation rates to be used in the Canadian Productivity Accounts for the calculation of capital stock and the user cost of capital. Estimates are derived of depreciation profiles for a diverse set of assets, based on patterns of resale prices and retirement ages.

    A maximum likelihood technique is used to jointly estimate changes in the valuation of assets over the course of their service life, as well as the nature of the discard process used to dispose of assets to generate depreciation rates. This method is more efficient than others in producing estimates with less bias and higher efficiency.

    The earlier estimates that were derived for the period from 1985 to 2001 are compared with those for the latest period, from 2002 to 2010.

    Release date: 2015-01-26

  • Notices and consultations: 13-605-X201400314106
    Description:

    The methodology for estimating the Flows and Stocks of Fixed Capital has been redeveloped to ensure greater coherence of the capital stock program within the Canadian System of Macroeconomic Accounts (CSMA). This is done by incorporating investment flows directly from the CSMA on a detailed industry/asset basis. The data released will be based on the input-output final demand classification, with updated per asset depreciation profiles and prices.

    Release date: 2014-10-17

  • Articles and reports: 15-206-X2012029
    Geography: Canada
    Description:

    Intangible capital consists of investments that do not take on the solid, physical characteristics of machinery and equipment or buildings. Nevertheless, such investments have some of the properties of other types of investments in that they yield long-lasting benefits as a result of expenditures that are made today. In the National Accounts, these expenditures need to be capitalized rather than expensed as intermediate materials for purposes of estimating gross domestic product (GDP).

    Recent papers have considered issues surrounding the measurement of intangibles. Baldwin et al. (2005) discussed issues surrounding research and development (R&D). They noted that R&D is only one of the components of innovation expenditures. Baldwin et al. (2009) extended the measurement of intangible investments beyond that of just R&D. At the heart of intangible investments, of course, are software and R&D. However, intangible investments also consist of purchased science services, own-account scientific services, exploration expenses in the resource sector, and advertising expenditures, because these create an intangible asset and yield long-term benefits.

    This paper extends the authors' previous work in three ways. First, it expands it into several new areas--what are referred to as economic competencies. These involve primarily investments in human capital--via management and training investments as well as management consulting services. This not only provides broader coverage; it also allows cross-country comparisons of Canada to the United States.

    Second, this paper moves from just measuring investment to also developing capital stock estimates. This requires assumptions about depreciation rates. In both instances, the paper adopts assumptions similar to those used elsewhere in developing estimates for the United States, in order to ensure comparability.

    Third, the paper incorporates the estimates of intangible capital into the growth-accounting framework so as to understand how it is related to productivity growth. A comparison of Canada and the United States in this regard is also provided.

    Release date: 2012-06-01

  • Table: 21-012-X
    Description:

    This publication contains annual data from 1926 to date for farm operating expenses and depreciation charges for Canada and the provinces. Data highlights and concepts and methods are also included.

    In May, annual measures for the previous two calendar years are subject to revision. In November, estimates for the previous three years may be revised. Every five years a historical revision is done, based on the results of the Census of Agriculture. Although the data are available in late May and late November, the publication is not completed and released until the following July and January, respectively.

    Release date: 2011-11-24

  • Table: 21-017-X
    Description:

    This publication contains annual data from 1981 to date on the value-added account for Canada and the provinces. Data highlights and concepts and methods are also included.

    In May, annual measures for the previous two calendar years are subject to revision. In November, estimates for the previous three years may be revised. Every five years a historical revision is done, based on the results of the Census of Agriculture. Although the data are available in late May and late November, the publication is not completed and released until the following July and January, respectively.

    Release date: 2011-11-24

  • Surveys and statistical programs – Documentation: 15-206-X2008018
    Description:

    Official data from statistical agencies are not always ideal for cross-country comparisons because of differences in data sources and methodology. Analysts who engage in cross-country comparisons need to carefully choose among alternatives and sometimes adapt data especially for their purposes. This paper develops comparable capital stock estimates to examine the relative capital intensity of Canada and the United States.

    To do so, the paper applies common depreciation rates to Canadian and U.S. assets to come up with comparable capital stock estimates by assets and by industry between the two countries. Based on common depreciation rates, it finds that capital intensity is higher in the Canadian business sector than in the U.S. business sector. This is the net result of quite different ratios at the individual asset level. Canada has as higher intensity of engineering infrastructure assets per dollar of gross domestic product produced. Canada has a lower intensity of information and communications technology (ICT) machinery and equipment (M&E). Non-ICT M&E and building assets intensities are more alike in the two countries.

    However, these results do not control for the fact that different asset-specific capital intensities between Canada and the United States may be the result of a different industrial structure. When both assets and industry structure are taken into account, the overall picture changes somewhat. Canada's business sector continues to have a higher intensity of engineering infrastructure and about the same intensity of building assets; however, it has a deficit in M&E that goes beyond ICT assets.

    Release date: 2008-07-10

  • Journals and periodicals: 15-549-X
    Geography: Canada
    Description:

    This paper offers empirical evidence on the actual rates and forms of economic depreciation for a comprehensive set of assets. Using a Canadian micro database on the purchase and disposal of capital goods from Statistics Canada's Capital Expenditure Survey, the study estimates depreciation rates for 36 asset categories, which represent half of the Canadian business capital stock. Depreciation rates for the remaining assets are calibrated using the average age-price relationship from the estimation and surveyed service lives obtained from the Capital Expenditure Survey. The impact of the estimated depreciation rates on the Canadian capital stock and depreciation allowances is also presented.

    Release date: 2007-09-26

  • Articles and reports: 12-001-X20070019851
    Description:

    To model economic depreciation, a database is used that contains information on assets discarded by companies. The acquisition and resale prices are known along with the length of use of these assets. However, the assets for which prices are known are only those that were involved in a transaction. While an asset depreciates on a continuous basis during its service life, the value of the asset is only known when there has been a transaction. This article proposes an ex post weighting to offset the effect of source of error in building econometric models.

    Release date: 2007-06-28
Data (4)

Data (4) ((4 results))

  • Table: 21-012-X
    Description:

    This publication contains annual data from 1926 to date for farm operating expenses and depreciation charges for Canada and the provinces. Data highlights and concepts and methods are also included.

    In May, annual measures for the previous two calendar years are subject to revision. In November, estimates for the previous three years may be revised. Every five years a historical revision is done, based on the results of the Census of Agriculture. Although the data are available in late May and late November, the publication is not completed and released until the following July and January, respectively.

    Release date: 2011-11-24

  • Table: 21-017-X
    Description:

    This publication contains annual data from 1981 to date on the value-added account for Canada and the provinces. Data highlights and concepts and methods are also included.

    In May, annual measures for the previous two calendar years are subject to revision. In November, estimates for the previous three years may be revised. Every five years a historical revision is done, based on the results of the Census of Agriculture. Although the data are available in late May and late November, the publication is not completed and released until the following July and January, respectively.

    Release date: 2011-11-24

  • 3. Cable Television Archived
    Table: 56-205-X
    Description:

    This online publication presents detailed annual financial and operating statistics on the Canadian cable television industry. Operational data are published on subscribers, households passed by cable, kilometres of cable, channel capacity and program hours. Financial statistics include detailed revenue and expense accounts, balance sheet and statement of retained earnings. The preamble to the publication consists of statistical highlights, a written analysis and text tables which display a financial and operating summary of the cable television industry. Also included is a glossary of terms for the industry.

    Release date: 2000-06-21

  • Table: 63-204-X
    Description:

    Statistics on hotels, motels, tourist camping grounds and other types of traveller accommodation (e.g., receipts, employment, expenses, occupancy) are provided in this publication. Also included are definitions, methodology, and notes on data quality.

    Release date: 2000-06-07
Analysis (10)

Analysis (10) ((10 results))

  • Articles and reports: 11-633-X2018018
    Description:

    This paper describes the data sources and methods used to backcast provincial and territorial income-based gross domestic product (GDP), expenditure-based GDP, real gross domestic income, unemployment rates, depreciation rates and urbanization rates. Nevertheless, estimates can be produced that are very close and which are useful for understanding the evolution of the provincial and territorial economies. Instrumental variable techniques are used to estimate the historical movements of these economic variables back to 1950.

    Release date: 2018-11-02

  • Journals and periodicals: 11F0027M
    Geography: Canada
    Description:

    The Economic Analysis Research Paper Series provides the circulation of research conducted by the staff of National Accounts and Analytical Studies, visiting fellows and academic associates. The research paper series is meant to stimulate discussion on a range of topics including the impact of the new economy; productivity issues; firm profitability; technology usage; the effect of financing on firm growth; depreciation functions; the use of satellite accounts; savings rates; leasing; firm dynamics; hedonic estimations; diversification patterns; investment patterns; the differences in the performance of small and large, or domestic and multinational firms; and purchasing power parity estimates. Readers of the series are encouraged to contact the authors with comments, criticisms and suggestions.

    The primary distribution medium for the papers is the Internet. These papers can be downloaded from the Internet at www.statcan.gc.ca for free. Papers in the series are distributed to Statistics Canada Regional Offices and provincial statistical focal points.

    All papers in the Economic Analysis Series go through institutional and peer review to ensure that they conform to Statistics Canada's mandate as a government statistical agency and adhere to generally accepted standards of good professional practice.

    The papers in the series often include results derived from multivariate analysis or other statistical techniques. It should be recognized that the results of these analyses are subject to uncertainty in the reported estimates.

    The level of uncertainty will depend on several factors: the nature of the functional form used in the multivariate analysis; the type of econometric technique employed; the appropriateness of the statistical assumptions embedded in the model or technique; the comprehensiveness of the variables included in the analysis; and the accuracy of the data that are utilized. The peer group review process is meant to ensure that the papers in the series have followed accepted standards to minimize problems in each of these areas.

    Release date: 2015-07-24

  • Articles and reports: 15-206-X2015039
    Description:

    This paper generates updated estimates of depreciation rates to be used in the Canadian Productivity Accounts for the calculation of capital stock and the user cost of capital. Estimates are derived of depreciation profiles for a diverse set of assets, based on patterns of resale prices and retirement ages.

    A maximum likelihood technique is used to jointly estimate changes in the valuation of assets over the course of their service life, as well as the nature of the discard process used to dispose of assets to generate depreciation rates. This method is more efficient than others in producing estimates with less bias and higher efficiency.

    The earlier estimates that were derived for the period from 1985 to 2001 are compared with those for the latest period, from 2002 to 2010.

    Release date: 2015-01-26

  • Articles and reports: 15-206-X2012029
    Geography: Canada
    Description:

    Intangible capital consists of investments that do not take on the solid, physical characteristics of machinery and equipment or buildings. Nevertheless, such investments have some of the properties of other types of investments in that they yield long-lasting benefits as a result of expenditures that are made today. In the National Accounts, these expenditures need to be capitalized rather than expensed as intermediate materials for purposes of estimating gross domestic product (GDP).

    Recent papers have considered issues surrounding the measurement of intangibles. Baldwin et al. (2005) discussed issues surrounding research and development (R&D). They noted that R&D is only one of the components of innovation expenditures. Baldwin et al. (2009) extended the measurement of intangible investments beyond that of just R&D. At the heart of intangible investments, of course, are software and R&D. However, intangible investments also consist of purchased science services, own-account scientific services, exploration expenses in the resource sector, and advertising expenditures, because these create an intangible asset and yield long-term benefits.

    This paper extends the authors' previous work in three ways. First, it expands it into several new areas--what are referred to as economic competencies. These involve primarily investments in human capital--via management and training investments as well as management consulting services. This not only provides broader coverage; it also allows cross-country comparisons of Canada to the United States.

    Second, this paper moves from just measuring investment to also developing capital stock estimates. This requires assumptions about depreciation rates. In both instances, the paper adopts assumptions similar to those used elsewhere in developing estimates for the United States, in order to ensure comparability.

    Third, the paper incorporates the estimates of intangible capital into the growth-accounting framework so as to understand how it is related to productivity growth. A comparison of Canada and the United States in this regard is also provided.

    Release date: 2012-06-01

  • Journals and periodicals: 15-549-X
    Geography: Canada
    Description:

    This paper offers empirical evidence on the actual rates and forms of economic depreciation for a comprehensive set of assets. Using a Canadian micro database on the purchase and disposal of capital goods from Statistics Canada's Capital Expenditure Survey, the study estimates depreciation rates for 36 asset categories, which represent half of the Canadian business capital stock. Depreciation rates for the remaining assets are calibrated using the average age-price relationship from the estimation and surveyed service lives obtained from the Capital Expenditure Survey. The impact of the estimated depreciation rates on the Canadian capital stock and depreciation allowances is also presented.

    Release date: 2007-09-26

  • Articles and reports: 12-001-X20070019851
    Description:

    To model economic depreciation, a database is used that contains information on assets discarded by companies. The acquisition and resale prices are known along with the length of use of these assets. However, the assets for which prices are known are only those that were involved in a transaction. While an asset depreciates on a continuous basis during its service life, the value of the asset is only known when there has been a transaction. This article proposes an ex post weighting to offset the effect of source of error in building econometric models.

    Release date: 2007-06-28

  • Journals and periodicals: 15-204-X
    Description:

    Productivity growth in Canada (PGC), is the reference publication on productivity in Canada. The objective of this publication is twofold: a) to illustrate the importance of productivity trends on the changes in living standards in Canada and, b) to measure the productivity performance of the Canadian economy in comparison with the United States, in particular. PGC includes articles on productivity and related issues and serves as a vehicle to understanding the sources underlying economic growth in Canada.

    Release date: 2003-02-14

  • Articles and reports: 62F0014M2001015
    Geography: Canada
    Description:

    The Canadian Consumer Price Index (CPI) applies a version of the user cost approach to measure the cost of home ownership. Because this approach specifically estimates the costs of using owned accommodation and not those faced by tenants, the measure includes a "replacement cost" (or depreciation) component. Depreciation is the only component in the CPI that is not an out-of-pocket expense. Consequently, economists face a unique set of methodological challenges when measuring depreciation.

    Between 1949 and 1997, the annual housing depreciation rate used in the CPI was 2%. Statistics Canada adopted the rate from a study that analysed U.S. Federal Housing Administration field appraisal data from 1939.

    This study argues that there is evidence that the 2% depreciation rate is too high to continue to use in the future. Consider that: 1) other Canadian studies show an upper bound of 1.7%, with a median estimate of 1.5%; 2) other statistical agencies use lower rates; and 3) every academic study over the past 40 years has arrived at a lower rate. As a consequence of this study and the existing supporting evidence, the depreciation rate in the Canadian CPI was lowered to 1.5% effective January 1998.

    Release date: 2001-11-28

  • Articles and reports: 63F0002X1998020
    Description:

    Leasing, rather than buying, is increasingly becoming an attractive option for both consumers and businesses. This article looks at the industries that rent or lease: automobiles and trucks; and machinery and equipment. In some instances, the focus turns to the sub-industries comprising these broader industry groups. The article quantitatively examines the industries' financial performances, and employment, remuneration, and output levels from 1991 to 1995. Also examined is the effect of firm size on outcomes in these industries.

    Release date: 1998-12-16

  • Articles and reports: 61-532-X19970013501
    Description:

    Conventional models of physical depreciation only measure the quantity side of Fixed Capital Flows and Stocks (FCFAS). An additional weakness of these models is that the quantity values for all FCFAS are obtained by deflating all the items behind the FCFAS using only one deflator that of gross fixed capital formation. Furthermore, conventional models make arbitrary assumptions on both physical and economic depreciation. Because conventional models do not measure the price side of FCFAS, it is very difficult to fit the economic depreciation variable into the models; it is probably wrongly fitted into the models in all the cases.

    Release date: 1998-02-02
Reference (4)

Reference (4) ((4 results))

  • Notices and consultations: 13-605-X201400314106
    Description:

    The methodology for estimating the Flows and Stocks of Fixed Capital has been redeveloped to ensure greater coherence of the capital stock program within the Canadian System of Macroeconomic Accounts (CSMA). This is done by incorporating investment flows directly from the CSMA on a detailed industry/asset basis. The data released will be based on the input-output final demand classification, with updated per asset depreciation profiles and prices.

    Release date: 2014-10-17

  • Surveys and statistical programs – Documentation: 15-206-X2008018
    Description:

    Official data from statistical agencies are not always ideal for cross-country comparisons because of differences in data sources and methodology. Analysts who engage in cross-country comparisons need to carefully choose among alternatives and sometimes adapt data especially for their purposes. This paper develops comparable capital stock estimates to examine the relative capital intensity of Canada and the United States.

    To do so, the paper applies common depreciation rates to Canadian and U.S. assets to come up with comparable capital stock estimates by assets and by industry between the two countries. Based on common depreciation rates, it finds that capital intensity is higher in the Canadian business sector than in the U.S. business sector. This is the net result of quite different ratios at the individual asset level. Canada has as higher intensity of engineering infrastructure assets per dollar of gross domestic product produced. Canada has a lower intensity of information and communications technology (ICT) machinery and equipment (M&E). Non-ICT M&E and building assets intensities are more alike in the two countries.

    However, these results do not control for the fact that different asset-specific capital intensities between Canada and the United States may be the result of a different industrial structure. When both assets and industry structure are taken into account, the overall picture changes somewhat. Canada's business sector continues to have a higher intensity of engineering infrastructure and about the same intensity of building assets; however, it has a deficit in M&E that goes beyond ICT assets.

    Release date: 2008-07-10

  • Surveys and statistical programs – Documentation: 15-206-X2007005
    Description:

    This paper generates depreciation profiles for a diverse set of assets based on patterns of resale prices and retirements. In doing so, it explores the sensitivity of estimates of the growth in capital stock and capital services to alternate estimates of depreciation.

    In the first instance, survival analysis techniques are used to estimate changes in valuation of assets over the course of their service life. In the second instance, a two-step procedure is utilized that first estimates the discard function for used assets (assets discarded at zero prices) and then uses the resulting estimates to correct for selection bias that arises when just positive used-asset prices are employed to estimate age-price profiles to produce depreciation rates. For the third method, a discard function and an asset efficiency function are jointly specified and estimated.

    These three different methods produce depreciation profiles that follow convex patterns. Accelerated profiles are apparent for many individual assets in the machinery and equipment and structures classes.

    We also compare the ex post estimates of length of life that are based on outcomes to ex ante expected lives and find they are much the same. We therefore choose ex ante lives along with information from the ex post rates on the rate of decline in an asset's value to generate a set of depreciation rates for use in the productivity accounts.

    We then use our depreciation model to produce estimates of the growth in capital stock and capital services over the 1961 to 1996 period. We find that the resulting estimates of capital stock and capital services are quite similar to those previously produced.

    Release date: 2007-02-12

  • Surveys and statistical programs – Documentation: 21-525-X
    Description:

    Statistics Canada publishes several measures of farm income, each produced for a different purpose. This bulletin describes the concepts behind these different measures, the methods by which the measures are constructed, and the uses for which they were designed.

    Release date: 2000-11-29
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