[PEN-L:11023] Re: K/Y ratio

[Anders Ekeland <andersek@xxxxx>]

I have followed the discussion on K/Y ratios with great interest, but I must
say that I am basically sceptical of these numbers, there are substantial
measurement problems especially regarding K, but also Y. I find it strange
that Austria, Denmark, Norway, Finland, Switzerland are having the highest
K/Y ratio in their biz sector.

I mean Norway has the oil industry (extremely K-intensive), the hydro
electric sector, the metallurgy, the endless roads - intuitively I could
accept a high K/Y for us - but Denmark? OK they have some shipyards, and the
agro-industrial complex, but the rest is agriculure and breweries (no
offence intended). I can se no reason for them to be significantly higher
than Sweden, on the contrary.

I am by no means an expert in this field, but I know that the K/Y ratio for
Norway *as a whole* is very sensitive to things like the use of (the various
official Norwegian) price indexes, the treatment of the public sector, the
treatment of "building capital" (1/3 of all K in Norway), that is how do you
treat private homes, industrial and public buildings.

Before I would start speculating to much about human capital etc. - are
these numbers based on the same measuring methods? Or is it just OECD
compiling a heroic series of comparative numbers again? Why is it that small
countries in Europe with a very diverse industry structure have so high ratios?

Is this really buisiness sector or has public sector (or parts of it) made
their way into the numbers?

This is also said to be 1996 data, but is 1996 data really available already
in all these countries? The statistical offices must have been improving
enormously lately, OECD stat. department too. I mean - in Norway we just
barely got the -95 data for the manufacturing sector. A two year delay is
the rule.

Just my 2 sceptical cents

Regards
Anders Ekeland, Norway