viii Capital includes measures of machinery and equipment, engineering, and structures as well as three types of “intangible” expenditures that are currently capitalized in Statistics Canada’s national accounts data: research and development, software, and mineral exploration and evaluation. Other intangible investments, such as expenditures to build databases or to increase firm-specific human capital, are not currently capitalized and included in the capital stock.
Chapters 13 and 14 of MIP deal with the consumption function when unemployment takes the household off its labor supply curve, and with other interactions between markets. They are based on research by Leijonhufvud and Clower, and do an excellent job of clarifying the implications of disequilibrium in one market for behavior in other markets.