Methods

An important part of this work involves the development of models that will be used to decompose the aggregate production and investment information contained in the supply and use tables and capital stock accounts into those components that represent infrastructure according to the stated definition. Investment disaggregation is the foundational step, after which, established models, such as the perpetual inventory method, are applied to determine the key economic variables within this statistical framework.

With any model development or application of established models, certain assumptions are followed. For example, it is assumed that the production function of the construction industry has remained relatively stable since the last IO year. When a depreciation profile or price is only available at the more aggregated asset level, it holds for the disaggregated level as well.