RDP 8501: Neoclassical Theory and Australian Business Investment: A Reappraisal Data Appendix[*]

U.R. Kohli and C.J. Ryan

August 1985

B Private non-bank holdings of government securities (at face value).
Source: Reserve Bank
M Currency plus total deposits at all trading banks plus total deposits at all savings banks (M3).
Source: ([1]) Table A.3, volume of Money
P Implicit price deflator for expenditure on gross domestic product.
Source: ([2])
Pc Implicit price deflator for private final consumption expenditure.
Source: ([2])
PI Implicit price deflator for gross fixed capital expenditure on non-dwelling construction and equipment.

PI = nominal γI/γI
where γI is defined below
rB Theoretical yield on 10 year non-rebate Australian government securities.
Source: ([2]), Table J.3. Yields on Government Securities.
rk Rate of return on capital
  where rk = (wk + ΔPI)/PI−δ
Wk is defined below
δ is the rate of depreciation of capital stock (=2.38% per quarter)
rm Proxy for the rate of return on money. Equals the interest rate on trading banks fixed deposits under $50,000 between 3 and 6 months. (Minimum of the range.)
Source: ([1]), Table J.1, Bank Interest Rates
W Beginning-of-period wealth
W = PI· XK + M + B
where xK is defined below.
Wk Rental price of capital (user cost)
   
where		 Wk = (YGOSC+YGOSFE)/xk
YGOSC is the gross operating surplus of companies. Source ([2])
YGOSFE is the gross operating surplus of financial enterprises less imputed bank service charge. Source ([2])
WN Nominal wage rate per quarter
 
where
 
and		 WN = YWSS/xN
YWSS is wages, salaries and supplements.
Source ([2])
xN is defined below.
xk Stock of capital
xk+1 = (1−δ) xk + γI
(the end-of-June quarter, 1979 value is $99,057 million)
γI is defined below.
xN Employment
Source: The Labour Force, Australia. ABS 6202.0, March 1983
Data before 1966(3) constructed within the Reserve Bank using disaggregated data.
γ Gross domestic product. Source ([2])
γI Business gross fixed capital expenditure
γI = gross fixed capital expenditure on non-dwelling construction (Source: ([2]))
plus gross fixed capital expenditure on equipment (Source: ([2]))
data adjusted within the Reserve Bank to take out the effects of all lease-back arrangements to date.
γIN Net investment
γIN = xk+1 − xk
= γI − δ.xk

Footnotes

All data are seasonally adjusted where appropriate. [*]

Statistical Bulletin. Sydney: Reserve Bank of Australia, monthly. [1]

Quarterly Estimates of National Income and Expenditure (5,206.0) Canberra: Australian Bureau of Statistics, March quarter, 1983. [2]