Publication:
The Tyranny of Concepts : CUDIE (Cumulated, Depreciated Investment Effort) is NOT capital

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dc.contributor.authorPritchett, Lant
dc.date.accessioned2014-06-30T18:59:23Z
dc.date.available2014-06-30T18:59:23Z
dc.date.issued2000-05
dc.description.abstractThe cost of public investment is not the value of public capital. Unlike for private investors, there is no remotely plausible behavioral model of the government as investor that suggests that every dollar the public sector spends as "investment" creates capital in an economic sense. This seemingly obvious point has so far been uniformly ignored in the voluminous empirical literature on economic growth, which uses, at best, "cumulated, depreciated investment effort" (CUDIE), to estimate capital stocks. But in developing countries especially, the difference between investment cumulated at cost and capital value is of primary empirical importance: government investment is half or more of total investment. And perhaps as much as half, or more of government investment spending has not created equivalent "capital." This suggests that nearly everything empirical written in three broad areas is misguided. First, none of the estimates of the impact of public spending identify the productivity of public capital. Even where public capital could be very productive, regressions and evaluations, may suggest that public investment spending has little impact. Second, everything currently said about "total factor productivity" in developing countries is deeply suspect, as there is no way empirically to distinguish between low output (or growth) attributable to investments that created no "factors" and low output (or growth) attributable to low (or slow growth in) productivity in using accumulated "factors." Third, multivariate growth regressions to date have not, in fact, "controlled" for the growth of capital stock, so spurious interpretations have emerged.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/05/437638/tyranny-concepts-cudie-cumulated-depreciated-investment-effort-not-capital
dc.identifier.doi10.1596/1813-9450-2341
dc.identifier.urihttps://hdl.handle.net/10986/18846
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2341
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectACTUAL COSTS
dc.subjectAGENCY PROBLEMS
dc.subjectASSETS
dc.subjectCAPACITY UTILIZATION
dc.subjectCAPITAL EMPLOYED
dc.subjectCAPITAL GOODS
dc.subjectCOMMODITY PRICES
dc.subjectCOST MINIMIZATION
dc.subjectCOST OF CAPITAL
dc.subjectDEFLATION
dc.subjectDEPRECIATION OF ASSETS
dc.subjectDEVELOPED COUNTRIES
dc.subjectDISCLOSURE
dc.subjectDISCOUNT RATES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectEMPIRICAL STUDIES
dc.subjectEXCHANGE RATE
dc.subjectEXPECTED VALUE
dc.subjectGDP
dc.subjectINCOME
dc.subjectINFLATION
dc.subjectINVENTORY
dc.subjectINVESTMENT SPENDING
dc.subjectMARGINAL PRODUCT
dc.subjectMINES
dc.subjectMONOPOLIES
dc.subjectNATIONAL ACCOUNTING
dc.subjectPRICE DIFFERENCES
dc.subjectPRIVATE GOODS
dc.subjectPRIVATIZATION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY
dc.subjectPROFITABILITY
dc.subjectPUBLIC ENTERPRISES
dc.subjectPUBLIC GOODS
dc.subjectTAX COLLECTION
dc.subjectTELECOMMUNICATIONS
dc.subjectTERMS OF TRADE
dc.subjectTIME SERIES
dc.subjectTOTALITARIAN REGIMES
dc.subjectVALUATION
dc.subjectVOTERS
dc.subjectWEALTH
dc.titleThe Tyranny of Concepts : CUDIE (Cumulated, Depreciated Investment Effort) is NOT capitalen
dspace.entity.typePublication
okr.crossref.titleThe Tyranny of Concepts: CUDIE (Cumulated, Depreciated Investment Effort) Is Not Capital
okr.date.disclosure2000-05-31
okr.date.doiregistration2025-04-10T09:44:11.523774Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/05/437638/tyranny-concepts-cudie-cumulated-depreciated-investment-effort-not-capital
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid675081468766810973
okr.identifier.doi10.1596/1813-9450-2341
okr.identifier.externaldocumentum000094946_00060105322991
okr.identifier.internaldocumentum437638
okr.identifier.reportWPS2341
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/06/17/000094946_00060105322991/Rendered/PDF/multi_page.pdfen
okr.sectorOther Finance
okr.sectorFinance
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicEnvironmental Economics and Policies
okr.topicPublic Sector Development::Decentralization
okr.topicInternational Terrorism and Counterterrorism
okr.topicFiscal and Monetary Policy
okr.topicFinance and Financial Sector Development::Capital Markets and Capital Flows
okr.topicInternational Economics and Trade::Capital Flows
okr.unitPoverty and Human Resources Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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