Our new Indie Games subforum is now open for business in G&T. Go and check it out, you might land a code for a free game. If you're developing an indie game and want to post about it, follow these directions. If you don't, he'll break your legs! Hahaha! Seriously though.
Our rules have been updated and given their own forum. Go and look at them! They are nice, and there may be new ones that you didn't know about! Hooray for rules! Hooray for The System! Hooray for Conforming!
So, anyone who took an intro course in micro or macro probably ran into some sort of equation somewhere talking about output being a function of capital and labor, say Y = F(K,L). In the macro sense, this is usually taken to mean Y = total output of an economy, K = total capital in the economy, L = the size of the total labor force.
Empirically, there are pretty obvious ways to estimate Y and L; typically, we estimate Y by measuring real GDP (at least when talking about a national economy), and L by measuring the work force, or even just by approximating by saying it's some percentage of total population. K is a different story.
My question is: when viewing a national economy, what would be the best way to estimate capital stock? If you look at the BEA's account of real GDP, there's a subheading of "Gross private domestic investment." Would that be it? What does that actually measure?