Developer/availability

Tim Jones

Functions

A framework in Excel to calculate CFC of government from gross fixed capital formation (GFCF) of government and a suitable price measure. The selected price measure should be the best available reflection of the price of the capital stock of the government. Underlying assumptions: The CFC evolves linearly; The time of depreciation is 15 years (can easily be changed by user); No distinction is made for different asset classes (can easily be introduced by user); At the end of year t-1, it equals the level in the previous year plus additions (capital formation) in the year t-1 less "retirements" of the capital formation 15 years earlier.

Data requirements

In time series format, either: • GFCF at current prices of government; and • GFCF at constant prices of government; Or: • GFCF at current prices of government; and • A suitable price measure, for example: • Construction input price; • Consumer price index (CPI).

Other requirements

Intermediate understanding of Excel.

Flexibility

User free to change formulae if they deem there is a better way to reflect the economic reality of their own economy. For example, user can introduce different assets classes with different depreciation rates. The user can also introduce other types of depreciation rates.

Automaticity of calculations

Fully automatic provided data have been correctly entered.

Countries using the toolkit

Cambodia, Lebanon, Laos, Rwanda, Seychelles, Tanzania, Uganda