The study presents an estimate of Hungary's national wealth that builds on the pioneering work of Frigyes Fellner. It is based on a multi-sectoral wave-matrix model of the nation's cyclic growth, which leads to exploitation of the sectoral detail available in input-output tables and other national accounts data. Part 1 demonstrates the algebraic equivalence of the wave-matrix model and a double-entry bookkeeping matrix that corresponds to the national accounts. Part 2 describes the empirical implementation and findings. A 21-sector table for 2000 is aggregated into three productive branches and then augmented by rows and columns to represent the government and household sectors. Sectoral capital accumulation is estimated on the basis of costs and yields, while keeping consistent account of the origin and destination of funds. The national wealth is estimated to be close to EUR 10 raised to the 12 power. The most important finding is that the value of human capital (not yet considered in Fellner's time) surpassed that of tangible wealth in Hungary. The author speculates that the relative importance of human capital will continue to increase for the foreseeable future, due to greater emphasis on education and to longer life spans. tools for lowering demand for redistribution, rather than directly increasing income.
A. Brody, no address given, contact the journal editor
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