[PEN-L:11025] Re: K/Y ratio

[Doug Henwood <dhenwood@xxxxxxxxx>]

Anders Ekeland wrote:

>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?

The OECD says they compute the figures using a perpetual inventory method
based on SNA accounts.

It is the case, though, that the small countries don't have the same kind
of low-wage service sector the U.S. does, and also they rely on the export
of high-end manufactured goods too, right? It's not all that
counterintuitive.

Doug