Ferreira, SusanaHamilton, Kirk2012-03-192012-03-192010-10-01https://hdl.handle.net/10986/3935Existing wealth estimates show that in most countries intangible capital is the largest share of total wealth. Intangible capital is calculated as the difference between total wealth and tangible (produced and natural) capital. This paper uses new estimates of total wealth, natural capital, and physical capital for a panel of countries to shed light on the constituents of the intangible capital residual. In a development-accounting framework, the authors show that factors of production are very successful in explaining the variation in output per worker when they use intangible capital instead of human capital as a factor of production. This suggests that intangible capital captures a broad range of assets typically included in the total factor productivity residual. Human capital is an important factor, both in statistical and economic terms, in regressions decomposing intangible capital.CC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING FRAMEWORKACCOUNTING SYSTEMSAFFILIATED ORGANIZATIONSASSET VALUEASSET VALUESASSETSAVERAGE PRODUCTIVITYBALANCE SHEETBALANCE SHEETSBANK POLICYBENCHMARKCAPITAL ACCOUNTSCAPITAL ASSETSCAPITAL INTENSITIESCAPITAL NEEDSCAPITAL STOCKSCDCONSTANT RETURNS TO SCALECONTRACT ENFORCEMENTCOUNTRY DUMMIESCOUNTRY FIXED EFFECTSDEVELOPING COUNTRIESDEVELOPMENT PATHDIMINISHING RETURNSDISCOUNTED VALUEECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC SURVEYSECONOMIC THEORYECONOMICSELASTICITYEMPLOYMENTEXPENDITUREEXPENDITURESEXTERNAL ASSETSEXTERNALITIESFACTORS OF PRODUCTIONFINANCIAL ASSETSFINANCIAL INTEGRATIONFOREIGN ASSETSGDPGOVERNANCE INDICATORSGROWTH RATEGROWTH RATESHUMAN CAPITALINCOMEINCOME FLOWINCOME GROUPINCOME LEVELSINSTRUMENTINTANGIBLEINTANGIBLE ASSETSINTEREST PAYMENTSINTEREST RATEINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL INVESTMENTINVENTORYINVESTINGINVESTMENT LOCATION DECISIONSLABOR MARKETLABOR MARKETSMACROECONOMICSMARGINAL PRODUCTNATIONAL ECONOMYNATIONAL INCOMENATURAL CAPITALNATURAL RESOURCENATURAL RESOURCESNET FOREIGN ASSETSNPLPATENTSPOLITICAL STABILITYPOSITIVE COEFFICIENTSPRESENT VALUEPRODUCTION FUNCTIONPROPERTY RIGHTSRATE OF RETURNRATES OF RETURNREGRESSION ANALYSISREMITTANCESRETURNRETURN ON ASSETSRULE OF LAWSAVINGSSOCIAL CAPITALSUSTAINABLE DEVELOPMENTTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTOTAL OUTPUTWEALTHWORLD DEVELOPMENT INDICATORSWorld Bank10.1596/1813-9450-5452