9 Gross fixed capital formation

Printable version (PDF) of Chapter 9 (June 30, 2008)

Introduction

9.1 In the Income and Expenditure Accounts (IEA), gross fixed capital formation is divided into three principal types of investment expenditure:

  • residential structures;
  • non-residential structures; and
  • machinery and equipment.

9.2 Estimates of each type of investment are produced for the business1 and government sectors in the IEA. The discussion in this chapter is structured around these three major categories of gross fixed capital formation.

9.3 Fixed investment expenditure is a significant part of aggregate demand. This activity is tied to economic growth through its impact on the productive stock of capital, to social welfare in relation to government infrastructure, and to business cycles in terms of the volatility of its components.

Continue

Back to


Notes

1. Includes corporations, unincorporated businesses and non-profit institutions serving households.


You need to use the free Adobe Reader to view PDF documents. To view (open) these files, simply click on the link. To download (save) them, right-click on the link. Note that if you are using Internet Explorer or AOL, PDF documents sometimes do not open properly. See Troubleshooting PDFs. PDF documents may not be accessible by some devices. For more information, visit the Adobe website or contact us for assistance.