The purpose of fixed capital is to provide a picture of the productive capacity of the economy's capital stock as well as of that part of national wealth which is placed in fixed assets. Fixed capital is compiled according to guidelines in the present European national accounting system, ESA2010, and is based on investment series from the National Accounts. Fixed capital according to ESA2010 was first published in September 2014. Updated series for fixed capital are published yearly.
Fixed capital consists of five variables compiled at current prices and 2010-prices, chained values (Other volume changes in non-financial assets are not compiled at 2010-prices, chained values and revaluations are, by definition, only available at current prices):
The compilation of fixed capital is consistent with the investment series from the National Accounts with breakdown into industries, a fact which ensures consistency with the rest of the National Accounts. Buildings and transport equipment are completely or partly compiled using direct stock information from registers, which is seen as the most reliable compilation method. As buildings and transport equipment form the major part of fixed capital, it follows that the uncertainty on the total stock is reduced considerably. For the other variables, the PIM method or a combination of both methods is used.
As fundamental data for everyone dealing with socioeconomic conditions like economic ministries, organizations, the press, the financial sector, larger companies, students and researchers. National accounts are used as the basis for analyzing the economic development. National accounts continuously evaluate feedback from users via national and international forums.
The uncertainty on fixed capital is closely related to the uncertainty on the sources used. In addition, there is uncertainty connected with the assumptions made, for example in relation to service lives. Recently, there has been a tendency for upgrades of the figures for gross fixed capital formation. This means that one should expect a somewhat greater uncertainty about the figures for gross fixed capital formation than for other variables.
For a sensitivity analysis on the service lives used for dwellings please refer to A comparison of PIM Estimates with Direct Stock Information for Dwellings by Esben Dalgaard and Annette Thomsen. Paper prepared for the 26th General Conference of The International Association for Research in Income and Wealth. Cracow, Poland, 27 August to 2 September 2000.
First version of preliminary yearly national accounts figures are published end of November the following year for fixed capital. The final figures are published 3 years after the reference year.
The statistics are usually published according to schedule.
Comparisons with other statistics at a detailed industry level will often show differences, partly because of differences in definitions of variables, and partly because of the calendar year delimitation of the national accounts and its requirement of total coverage of the economic activity.
Internationally there is a high degree of comparability with the national accounts of other countries because the Danish national accounts are compiled in accordance with the definitions in the European System of National Accounts ESA2010.